BHAVYA Scheme impact on stocks: In a landmark step towards accelerating industrial growth, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, March 18, approved the Bharat Audyogik Vikas Yojna (BHAVYA), with an allocation of Rs 33,660 crore for developing 100 plug-and-play c across the country.
The scheme aims to develop world-class industrial infrastructure, unlocking manufacturing potential and driving India’s growth story. The BHAVYA scheme is expected to generate about 15 lakh direct jobs.
- Primary beneficiaries: Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure.
- Secondary beneficiaries: Workers, logistics providers, service sector enterprises, and local communities.
BHAVYA Scheme’s impact on stock market: Sectors and stocks to watch
The massive scale of construction and electrification required for 100 industrial parks has put several core sectors in the spotlight. With the allocation of Rs 33,660 crore for the BHAVYA scheme, analysts expect a significant order book boost for the following industries:
KNR Construction and PNC Infratech might benefit in this category. Shares of KNR Construction Ltd were trading at Rs 119.70, down Rs 2.85 or 2.33 per cent, on the BSE.
Stocks to benefit in the construction material segment
JSW Steel and Tata Steel are the key players in the steel manufacturing sector, likely to get the benefit from the scheme. Shares of JSW Steel were trading at 1139.65, down Rs 39.80 or 3.37 per cent, on the BSE. The shares of Tata Steel were trading at Rs 192.55, down Rs 2.75 or 1.41 per cent, on the BSE.
Pipes – APL Apollo, Astral
Power equipment – Siemens Ltd, ABB India
Siemens Ltd and ABB India might also get the benefit of the scheme. Shares of Siemens India were trading at Rs 3076.05, Rs 142.40 or 4.42 per cent lower from yesterday’s closing of Rs 3218.45 on the BSE at around 1.30 pm. Shares of ABB India were trading at Rs 6211.40, down Rs 124.80 or 1.97 per cent, on the BSE.
Cable/wire companies – Polycab, KEI
BHAVYA scheme to accelerate industrial development
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Amardeep Singh Bhatia, addressing a media briefing, on Wednesday, informed that the BHAVYA scheme will have a duration of six years, from FY27 to 2031-32, with 50 parks to be developed in the first phase and the central government funding of up to Rs 1 crore per acre.
Under the scheme, industrial parks ranging from 100 to 1,000 acres will be taken up for the development with financial support of up to Rs 1 crore per acre. These parks will have core infrastructure like internal roads, underground utilities, drainage, common treatment facilities, ICT and administrative systems.
Besides, there would be value-added infrastructure like ready-built factory sheds, built-to-suit units, testing labs, warehousing and social infrastructure, including houses for workers and other amenities.
Moreover, Bhatia said, support for external infrastructure will also be provided up to 25 per cent of the project cost, ensuring seamless connectivity and integration with existing networks.
Project selection will be undertaken through a challenge mode, ensuring that only high-quality, reform-oriented and investment-ready proposals are taken forward.
Building on the success of Industrial Smart Cities developed under the National Industrial Corridor Development Programme (NICDP) framework, Information and Broadcasting Minister Ashwini Vaishnaw said BHAVYA will be implemented in partnership with states and private sector players.
At the heart of BHAVYA lies a strong push for deregulation and ease of doing business, with streamlined approvals, effective single-window systems, and investor-friendly reforms led by states.
The scheme will deliver plug-and-play industrial ecosystems, enabling industries to move from intent to production with speed and certainty, he said.
With pre-approved land, ready infrastructure, and integrated services, BHAVYA will significantly reduce entry barriers for investors, he added.
The proposed industrial parks will be developed as future-ready and sustainable ecosystems. They will be aligned with the PM GatiShakti principles to ensure seamless multimodal connectivity and efficient last-mile access.
The parks will promote green energy and sustainable resource utilisation, supported by integrated underground utility corridors that enable a ‘no-dig’ environment.
This will facilitate efficient maintenance and ensure uninterrupted industrial operations.
Overall, these parks aim to set new benchmarks in industrial infrastructure by enhancing reliability, reducing inefficiencies, and boosting productivity across sectors.
The BHAVYA scheme is expected to generate large-scale employment, creating significant direct and indirect job opportunities across manufacturing, logistics, and services while attracting substantial investments.
The initiative will be implemented across all states and Union Territories, generating lakhs of employment opportunities nationwide and accelerating industrial growth.
By promoting cluster-based development and enabling the co-location of industries, suppliers, and service providers, BHAVYA will strengthen domestic supply chains, encourage regional industrialisation, and open up new opportunities for millions.
The scheme will directly benefit manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure, workers, logistics providers, service sector enterprises, and local communities.
The National Industrial Corridor Development Corporation Limited (NICDC), under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, is spearheading the development of world-class greenfield industrial smart cities to enhance manufacturing competitiveness, attract investments, and generate employment. NICDC is currently implementing 20 projects across 13 states.
NICDC-led initiatives are built on the concept of plug-and-play industrial parks — ready-to-use ecosystems where land, utilities, approvals, and infrastructure are pre-developed, enabling industries to start operations quickly without delays related to land acquisition or infrastructure setup.
(With inputs from agencies)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
