3030 crore scheme gets green signalImage Credit source: PTI
The Union Cabinet on Friday announced a new scheme of Rs 3,030 crore for setting up three big chemical parks. Through this, the aim is to make India self-reliant in the chemical sector. Bharat Industrial Development Scheme Chemicals (Grand Chemicals) was approved in the Cabinet meeting chaired by Prime Minister Narendra Modi. Information and Broadcasting Minister Ashwini Vaishnav informed about this decision. The total cost of this scheme announced in the budget for the financial year 2026-27 is Rs 3,030 crore.
Of this, Rs 3,000 crore will be spent on development of common infrastructure and basic amenities, while Rs 30 crore is earmarked for administrative expenses. This scheme will be applicable for five years starting from the current financial year till 2030-31.
Investment can be up to Rs 50 thousand crores
Vaishnav told reporters that an investment of Rs 20,000 crore to Rs 50,000 crore could be made in a chemical park to be established in an area of at least 2,000 acres. He said that this scheme will work as a multiplier in raising investment. He said the total investment would be much more than the amount earmarked for the scheme, as Rs 3,030 crore is only central assistance for infrastructure. Vaishnav said that these parks will be developed under the challenge route with the states and availability of minimum eight square kilometers (about 2,000 acres) of uninterrupted land will be required for each park.
These parks can be either greenfield (new) or brownfield (old), which will be selected by the state governments. Vaishnav said that the chemical sector is a ‘fundamental’ sector of the economy, which provides raw materials to many industries.
Grant of Rs 1000 crore to every park
According to an official statement, the central government will provide a maximum grant of up to Rs 1,000 crore for each park established under this scheme. However, it will be necessary for the concerned state government to contribute at least Rs 500 crore. The government said that this scheme will develop the entire value chain of the chemical industry, ensure better utilization of resources and reduce logistics costs.
The government said that this scheme will attract domestic and foreign investment, increase production capacity and increase employment, which will strengthen the global competitiveness of the region and promote self-reliance.
Facilities like CETP, TSDF, water supply system, solvent recovery, steam network, pipeline network, logistics and warehousing will be developed in these parks. The government said, ‘Establishment of these parks will lead to sustainable development of the chemical industry and its impact will also boost development in sectors like agriculture, textiles, pharmaceuticals, vehicles and electronics.
