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UNION CABINET APPROVES BHAVYA RASAYAN SCHEME AND BALLARI–GUNTAKAL RAILWAY EXPANSION

UNION CABINET APPROVES BHAVYA RASAYAN SCHEME AND BALLARI–GUNTAKAL RAILWAY EXPANSION

Why in the News?

  • Industrial Development: The Union Cabinet has approved the BHAVYA Rasayan Scheme with a financial outlay of ₹3,030 crore to establish three dedicated chemical parks across India, attracting investment decisions from institutional investors and asset managers focused on sustainable business practices.
  • Infrastructure Boost: The Cabinet Committee on Economic Affairs (CCEA) has also approved the construction of the 3rd and 4th railway lines on the Ballari–Guntakal section in Karnataka and Andhra Pradesh at a cost of approximately ₹1,264 crore, enhancing market valuation of regional infrastructure assets.

KEY FEATURES OF THE BHAVYA RASAYAN SCHEME

  • Objective: The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) aims to strengthen India’s chemical and petrochemical manufacturing ecosystem by developing three world-class chemical parks with common infrastructure, incorporating sustainable business practices and addressing climate change concerns through modern environmental standards.
  • Financial Outlay: The scheme has a total allocation of ₹3,030 crore, including ₹3,000 crore for common infrastructure and ₹30 crore for administrative expenditure, to be implemented from FY 2026–27 to FY 2030–31, representing significant market capitalisation potential for participating entities.
  • Central-State Partnership: The Central Government will provide a grant of up to ₹1,000 crore per chemical park, subject to a minimum contribution of ₹500 crore by the respective State Government, demonstrating structured investment solutions for industrial development.
  • Common Infrastructure: The parks will provide shared utilities, logistics facilities, waste management systems, testing laboratories, and other industrial infrastructure, reducing production costs and improving operational efficiency while meeting ethical standards for environmental protection and climate change mitigation.
  • Industrial Competitiveness: The scheme seeks to attract private investment, promote value addition, enhance global competitiveness, strengthen domestic supply chains, and support the vision of Atmanirbhar Bharat, appealing to fund managers pursuing equity investment strategies in green economy companies.

BALLARI–GUNTAKAL RAILWAY EXPANSION

  • Capacity Enhancement: The project involves constructing the 3rd and 4th railway lines on the Ballari–Guntakal section, increasing the Indian Railways network by approximately 46 km, enhancing infrastructure market valuation and attracting investment decisions from international investment funds.
  • Regional Connectivity: The railway expansion will improve connectivity for around 99 villages with a combined population of nearly 7 lakh, while enhancing access to important tourist destinations, demonstrating social responsibility in infrastructure planning.
  • Freight Movement: The route is a major corridor for transporting iron ore, coal, iron and steel, limestone, dolomite, fertilisers, and food grains, supporting industrial and agricultural logistics while reducing climate change impact through efficient transportation.
  • Economic Benefits: The project is expected to increase freight handling capacity by approximately 16.22 million tonnes per annum, reducing congestion and improving logistics efficiency, factors that influence investment decisions by asset managers evaluating infrastructure market capitalisation.
  • PM Gati Shakti Integration: The railway expansion has been planned under the PM Gati Shakti National Master Plan, promoting integrated multimodal infrastructure and economic development, aligning with sustainable investing principles and ethical preferences of modern fund managers.

PM GATI SHAKTI NATIONAL MASTER PLAN

●  About: PM Gati Shakti National Master Plan, launched in 2021, is a GIS-based digital platform that integrates infrastructure planning across multiple Ministries to enable coordinated and efficient project implementation, incorporating sustainable business practices and ethical considerations valued by institutional investors.

●  Objective: It seeks to provide multimodal connectivity, reduce logistics costs, eliminate infrastructure gaps, and improve the efficiency of freight and passenger transportation, addressing climate change through optimised resource utilisation and attracting investment decisions from fund managers focused on green economy companies.

●  Key Features: The platform integrates data from various infrastructure sectors, including roads, railways, ports, airports, waterways, logistics parks, power, and telecommunications, enabling coordinated planning and faster execution while meeting ethical standards for sustainable investing.

●  Economic Significance: PM Gati Shakti supports industrial growth, export competitiveness, regional development, ease of doing business, and employment generation through integrated infrastructure development, enhancing overall market capitalisation and appealing to asset managers pursuing purpose-driven investing and social responsibility objectives.

●  UPSC Relevance: Important for Prelims and GS Paper III (Economy & Infrastructure) covering industrial corridors, logistics, multimodal connectivity, infrastructure planning, manufacturing, and economic development.