UPSC Prelims Practice Questions — Cabinet approves scheme of Chemical Parks “Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan)

Q1. Which one of the following statements regarding the approving authority and classification of the BHAVYA Rasayan scheme is correct?

  • A. It is a Central Sector Scheme approved by the Union Cabinet and is funded entirely by the Union without any mandatory financial contribution from the States.
  • B. It was approved by the Union Cabinet chaired by the Prime Minister and is run as a Central Sector Scheme under the Ministry of Chemicals and Fertilizers.
  • C. It was cleared by the Cabinet Committee on Economic Affairs and is a Centrally Sponsored Scheme with a fixed 60:40 Centre-State funding pattern.
  • D. It was approved by the NITI Aayog Governing Council and is a wholly State-funded challenge scheme with no Union grant.

Q2. With reference to the BHAVYA Rasayan scheme and the broader BHAVYA scheme, consider the following statements: 1. BHAVYA Rasayan aims to establish three dedicated Chemical Parks. 2. The broader BHAVYA scheme envisages 100 plug-and-play industrial parks anchored by the National Industrial Corridor Development Corporation (NICDC). 3. The full form of BHAVYA Rasayan is 'Bharat Audyogik Vikas Yatra Rasayan'. 4. BHAVYA Rasayan is administered by the Department for Promotion of Industry and Internal Trade (DPIIT). Which of the above is/are correctly identified?

  1. BHAVYA Rasayan aims to establish three dedicated Chemical Parks.
  2. The broader BHAVYA scheme envisages 100 plug-and-play industrial parks anchored by the National Industrial Corridor Development Corporation (NICDC).
  3. The full form of BHAVYA Rasayan is 'Bharat Audyogik Vikas Yatra Rasayan'.
  4. BHAVYA Rasayan is administered by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2 and 4 only
  • D. 1 and 4 only

Q3. Which one of the following correctly describes the financial outlay sanctioned for the BHAVYA Rasayan scheme?

  • A. A total outlay of Rs 3,030 crore spread over five years, from FY 2026-27 to FY 2030-31.
  • B. A total outlay of Rs 3,030 crore to be fully utilised within a single financial year, FY 2026-27.
  • C. An open-ended outlay with no fixed ceiling, to be disbursed permanently until every State is covered.
  • D. A total outlay of Rs 33,660 crore spread over five years.

Q4. Consider the following statements about the outlay of the BHAVYA Rasayan scheme: 1. Of the Rs 3,030 crore outlay, Rs 3,000 crore is earmarked for Common Infrastructure Facilities and Basic Utilities, and Rs 30 crore for administrative expenditure. 2. The entire outlay of the scheme is meant solely for administrative and staffing costs, with all infrastructure funded separately by the States. 3. The Rs 3,030 crore outlay of BHAVYA Rasayan is larger than the outlay earmarked for the broader BHAVYA industrial-parks scheme. Which of the statements given above is/are correct?

  1. Of the Rs 3,030 crore outlay, Rs 3,000 crore is earmarked for Common Infrastructure Facilities and Basic Utilities, and Rs 30 crore for administrative expenditure.
  2. The entire outlay of the scheme is meant solely for administrative and staffing costs, with all infrastructure funded separately by the States.
  3. The Rs 3,030 crore outlay of BHAVYA Rasayan is larger than the outlay earmarked for the broader BHAVYA industrial-parks scheme.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. Under BHAVYA Rasayan, the central assistance of up to Rs 1,000 crore per Chemical Park is best described as which one of the following?

  • A. A grant released to a State only if the State commits a minimum contribution of Rs 500 crore towards that park.
  • B. An unconditional grant released to every applicant State irrespective of any State contribution.
  • C. A repayable loan that the State must return to the Centre in full within five years.
  • D. A grant that meets the entire cost of each park, leaving no financial obligation for the State.

Q6. Consider the following statements regarding the funding of each Chemical Park under BHAVYA Rasayan: 1. The Centre provides a grant of up to Rs 1,000 crore per park, while the concerned State must contribute a minimum of Rs 500 crore per park. 2. The maximum central grant per park is twice the minimum stipulated State contribution per park. 3. The minimum State contribution per park exceeds the maximum central grant per park. Which of the statements given above is/are correct?

  1. The Centre provides a grant of up to Rs 1,000 crore per park, while the concerned State must contribute a minimum of Rs 500 crore per park.
  2. The maximum central grant per park is twice the minimum stipulated State contribution per park.
  3. The minimum State contribution per park exceeds the maximum central grant per park.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. The BHAVYA Rasayan scheme is implemented by which one of the following?

  • A. Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers
  • B. Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers
  • C. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • D. Department of Fertilizers, Ministry of Chemicals and Fertilizers

Q8. Consider the following statements about the approval and Budget origin of the BHAVYA Rasayan scheme: 1. The scheme was approved by the Union Cabinet on 24 July 2026. 2. The scheme was first announced in the Union Budget for FY 2026-27. 3. The Union Cabinet that approved the scheme was chaired by the Union Minister of Chemicals and Fertilizers. 4. In the Union Budget FY 2026-27, an initial Budget Estimate allocation of Rs 600 crore was made for the chemical parks. Which of the above is/are NOT correct?

  1. The scheme was approved by the Union Cabinet on 24 July 2026.
  2. The scheme was first announced in the Union Budget for FY 2026-27.
  3. The Union Cabinet that approved the scheme was chaired by the Union Minister of Chemicals and Fertilizers.
  4. In the Union Budget FY 2026-27, an initial Budget Estimate allocation of Rs 600 crore was made for the chemical parks.
  • A. 3 only
  • B. 1 and 3
  • C. 3 and 4
  • D. 2 only

Q9. The following are stated to be provided as common infrastructure within the Chemical Parks under BHAVYA Rasayan. Consider the statements: 1. A Common Effluent Treatment Plant. 2. Hazardous waste Treatment, Storage and Disposal Facilities. 3. A Common Effluent Treatment Plant together with a captive sea-port having dedicated berths built at each of the three parks. 4. Solvent recovery and pipeline interconnection facilities. Which of the above is/are NOT correctly listed?

  1. A Common Effluent Treatment Plant.
  2. Hazardous waste Treatment, Storage and Disposal Facilities.
  3. A Common Effluent Treatment Plant together with a captive sea-port having dedicated berths built at each of the three parks.
  4. Solvent recovery and pipeline interconnection facilities.
  • A. 3 only
  • B. 1 and 3
  • C. 3 and 4
  • D. 2 and 3

Q10. The 100 plug-and-play industrial parks under the broader Bharat Audyogik Vikas Yojna (BHAVYA) — distinct from BHAVYA Rasayan — are being developed by which one of the following agencies?

  • A. National Industrial Corridor Development Corporation Limited (NICDC)
  • B. National Highways Authority of India (NHAI)
  • C. National Investment and Infrastructure Fund (NIIF)
  • D. Invest India

Q11. Under the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) Policy, 2007, the lead role in setting up a PCPIR — including preparing the proposal and constituting the Management Board — is assigned to which one of the following?

  • A. The State Government concerned
  • B. The Central Government through the Department of Chemicals and Petrochemicals
  • C. The Petroleum and Natural Gas Regulatory Board
  • D. A consortium of private anchor tenants of the region

Q12. BHAVYA Rasayan is classified as a Central Sector Scheme. By definition, what share of the funding of a Central Sector Scheme is borne by the Union Government?

  • A. 100%
  • B. 90%
  • C. 75%
  • D. 60%