India Approves $360 Million Scheme for Chemical Parks, Boosts Rail Infrastructure

India's Union Cabinet has given the green light to the 'BHAVYA Rasayan' scheme, allocating ₹3,030 crore to establish three specialized chemical parks across the country. This initiative, announced in the Union Budget for FY2026-27, is slated for implementation over five years, from FY2026-27 to FY2030-31.

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The Cabinet’s approval of the BHAVYA-Rasayan Scheme marks an important step towards strengthening India’s chemical and petrochemical ecosystem.

The scheme's primary objective is to bolster India's chemical and petrochemical sector. The central government will contribute grants of up to ₹1,000 crore for each park, contingent upon a minimum contribution of ₹500 crore from the respective state governments. Prime Minister Narendra Modi highlighted the scheme's importance, stating on X that it marks a significant step in strengthening the nation's chemical and petrochemical ecosystem.

In a separate decision, the Cabinet Committee on Economic Affairs approved a major railway infrastructure project. The construction of a third and fourth rail line on the Ballari–Guntakal section, spanning Karnataka and Andhra Pradesh, will receive an investment of approximately ₹1,264 crore.

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The proposed multi-tracking project will enhance connectivity to approximately 99 villages, which are having a population of about seven lakhs (700,000).

This multi-tracking project aims to significantly enhance rail connectivity, adding about 46 km to the Indian Railways network. It is expected to improve access to numerous villages and prominent tourist destinations. The enhanced capacity will facilitate the transportation of essential commodities like iron ore, coal, fertilizers, and food grains, projecting an additional freight traffic of 16.22 million tonnes per annum. The project aligns with the PM-Gati Shakti National Master Plan, focusing on integrated planning for multi-modal connectivity and logistics efficiency. The government also noted the environmental benefits, including reduced oil imports and lower CO2 emissions, equivalent to planting 2.7 million trees.

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The Railways being an environment friendly and energy efficient mode of transportation, will help both in achieving climate goals and minimizing logistics cost of the country, reduce oil import (1.32 Crore Litres) and lower CO2 emissions (6.67 Crore Kg) which is equivalent to plantation of 0.27 crore trees.