Cabinet Approves BHAVYA Rasayan Chemical Parks Scheme and Karnataka-Andhra Rail Line
UPSC / SSC current affairs note · Economy
Why in news
The Union Cabinet approved the BHAVYA Rasayan scheme with a ₹3,030 crore outlay to establish three dedicated chemical parks, and also greenlit a ₹1,264 crore rail line expansion on the Ballari-Guntakal section in Karnataka and Andhra Pradesh. These decisions aim to boost the chemical industry and enhance rail connectivity for freight and passengers.
Background
The BHAVYA Rasayan scheme was announced in the Union Budget for FY2026-27. The rail project is part of the PM-Gati Shakti National Master Plan to improve multi-modal connectivity.
Key facts
BHAVYA Rasayan scheme has a total outlay of ₹3,030 crore, with ₹3,000 crore for infrastructure and ₹30 crore for administrative expenditure.
The scheme will establish three dedicated chemical parks over five years (FY2026-27 to FY2030-31).
Centre will provide a grant of up to ₹1,000 crore per park, subject to a minimum state contribution of ₹500 crore.
The rail project involves constructing a 3rd and 4th line on the Ballari-Guntakal section at a cost of approximately ₹1,264 crore.
The rail project covers three districts in Karnataka and Andhra Pradesh, adding about 46 km to the network.
It will enhance connectivity to about 99 villages with a population of about 7 lakhs.
The rail line is crucial for transporting commodities like iron ore, dolomite, limestone, iron and steel, coal, fertilizers, and food grains.
Capacity augmentation will result in additional freight traffic of 16.22 MTPA.
The rail project is planned under the PM-Gati Shakti National Master Plan.
Prelims pointers
- BHAVYA Rasayan: Bharat Audyogik Vikas Yojana Rasayan
- Scheme outlay: ₹3,030 crore
- Implementation period: FY2026-27 to FY2030-31
- Grant per park: up to ₹1,000 crore (Centre), minimum ₹500 crore (State)
- Ballari-Guntakal section: 3rd and 4th rail line
- Project cost: ₹1,264 crore
- PM-Gati Shakti National Master Plan
- Districts covered: three in Karnataka and Andhra Pradesh
Mains angles
- GS3: Infrastructure – Railways and industrial corridors; role in economic development
- GS3: Chemical industry – potential for growth, employment, and self-reliance
- GS2: Government policies and interventions – effectiveness of scheme design and centre-state cooperation