Plug-and-play industrial parks represent a shift from incentive-led to infrastructure-led industrialisation. Examine with reference to BHAVYA.

India's earlier industrial zones, especially those under the SEZ Act, 2005, drew firms mainly through tax and duty breaks. BHAVYA (Bharat Audyogik Vikas Yojna) takes a different route. Approved with ₹33,660 crore for 100 plug-and-play parks over 2026-27 to 2031-32 [1], it competes on ready infrastructure instead. The shift is real, but land and demand will decide how far it succeeds.

Incentive-led model: the SEZ experience

• Tax concessions were the main draw. CAG found that SEZs used about ₹83,105 crore in tax concessions (2006–13), yet much of the notified land lay idle or was diverted [5].
• Whether a zone attracted firms depended on its tax status more than on the quality of the site. India had 368 notified SEZs by February 2026 [7].

How BHAVYA makes infrastructure the main offer

• Ready to operate: roads, power, water, effluent treatment, factory sheds and worker facilities are built before firms arrive [2]. This cuts setup time, especially for MSMEs.
• Equity, not subsidy: the Centre takes equity in park SPVs registered under the Companies Act, 2013. This is capped at ₹1 crore/acre and tied to land value and milestones [2].
• Cooperative federalism: the Centre's corridor agency (NICDC) and States share SPVs 51:49, with States providing land. Parks are chosen in challenge mode through the BHAVYA Portal [3].
• Tested template: NICDC, the Project Management Agency [4], is reusing its corridor model. AURIC (Shendra-Bidkin) allotted 323 plots once its trunk infrastructure was ready [6].

Limits of the shift

• Land is the bottleneck: the scheme depends on States supplying land [3]. SEZ land was acquired but under-used [5], so land in hand does not mean factories in production.
• Money is spread thin: the average is about ₹337 crore per park [1]. That is far below what corridor cities received, so expectations must be modest.
• Demand is still needed: infrastructure alone cannot bring in investors. It still needs output incentives (e.g., PLI), skilled workers and connectivity.
• One agency carries the load: NICDC is already running several programmes, which strains its capacity [4].

BHAVYA therefore complements incentives rather than replaces them. It moves the state from giving up revenue to building lasting assets. Linking later equity instalments to plot occupancy, adding "use-it-or-lose-it" lease clauses and publishing park-wise occupancy on the portal would help keep parks full. Done well, it moves India towards SDG 9 (resilient infrastructure, inclusive industrialisation).