DPIIT issues BHAVYA implementation guidelines for industrial parks
Industrial-park sponsors must meet BHAVYA land, SPV and tranche-release gates
Change
DPIIT issued BHAVYA implementation guidelines setting eligibility, SPV, funding and milestone conditions for centrally supported industrial parks.
Why it matters
The guidelines turn BHAVYA funding into a gated project-approval process. Sponsors must secure encumbrance-free land, transfer land to the SPV, delegate planning powers and meet tranche milestones before central funds are released.
Implications
- — State, UT and CPSE sponsoring agencies must hold 90% encumbrance-free land at application stage — applications that fail mandatory land eligibility do not proceed to competitive evaluation.
- — Project sponsors must transfer land ownership to the SPV within three months of approval — delay annuls approval unless NLSC grants an additional three months for bona fide reasons.
- — State and UT governments must formally delegate planning and development powers to the SPV before funds are transferred — delegated powers are a precondition for central funding release.
- — SPVs must meet tranche-specific milestones before receiving funds — land transfer, environmental clearance, work commencement, utilisation thresholds, manufacturing-unit allotment and construction progress control release of the 40:40:20 funding tranches.
Who is affected
- — State and UT agencies sponsoring BHAVYA industrial park applications
- — Central public sector enterprises submitting BHAVYA industrial park proposals
- — SPVs implementing BHAVYA-funded industrial parks
- — Private developers participating in BHAVYA industrial park SPVs
What to watch
- — Portal opening notice — applications will be accepted through the designated online portal for a specified period.
- — One year from 2026-04-10 — first-phase selection process is to be completed within one year from scheme notification.
- — 24 months from project approval — SPVs must complete development works unless NLSC allows extra time for 500-1,000 acre projects.