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BHAVYA Scheme: ₹33,660 Crore for Industrial Smart Cities

26 May 20261 min read
GOVERNMENT SCHEMESBHAVYA Scheme:₹33,660 Crore forIndustrial SmartCities26 May 2026safalsetu.com

Why in the news

DPIIT put out the working guidelines for BHAVYA, a scheme to create investment-ready industrial cities with factories, utilities and housing ready to use.

Key facts

  • Full name: Bharat Audyogik Vikas Yojna; a Central Sector Scheme.
  • Nodal department: DPIIT (Commerce and Industry Ministry).
  • Outlay and period: ₹33,660 crore, six years from FY 2026-27 to FY 2031-32.
  • Agency: NICDC acts as Project Management Agency.
  • Delivery: SPVs formed under the Companies Act, 2013, with Government equity tied to state land transfer and milestones.

Financial support

ComponentAssistance
Capital support₹1 crore per acre at most
External infrastructureA maximum of 25% of cost, for last-mile links to national freight grids

Minimum land

Region typeLand requirement
Non-hilly statesAt least 100 acres
Hilly areas, North East, UTs, smaller states25 acres
Macro-clustersUp to 1,000 acres

Three-pillar infrastructure

PillarExamples
CoreInternal roads, no-dig underground utility corridors, smart drainage, CETPs
Value-addedReady factory sheds made to a client’s needs, quality labs, logistics warehousing
SocialWorker housing, healthcare, skill facilities, community amenities

Selection method

Sites are picked through a challenge-based scoring matrix judging site suitability, environmental sustainability, policy facilitation and regional strengths, which avoids arbitrary allocation.

Background

  • NICDC: special-purpose company of the Government for industrial corridors and integrated townships; handles DMIC, CBIC, AKIC, VCIC, BMIC and smart cities such as Dholera and Shendra-Bidkin.
  • PM GatiShakti: GIS-based master plan from October 2021 uniting 16 ministries for integrated infrastructure planning; one of three pillars of the National Logistics Policy (2022).

Exam angle

  • Type: Central Sector Scheme.
  • Project Management Agency: NICDC.
  • Target: 100 industrial smart cities, first 50 by challenge.

Test yourself

1. What is the total outlay of the Bharat Audyogik Vikas Yojna (BHAVYA)?

BHAVYA has an outlay of ₹33,660 crore.

2. Which body is the Project Management Agency for BHAVYA?

NICDC is the Project Management Agency.

3. Under BHAVYA, what is the minimum land requirement for industrial smart cities in non-hilly states?

Non-hilly states need at least 100 acres.