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GS Paper: GS3

  • Struggling with poor cyber security

    Why in the News?

    Kaveri 2.0, a web portal launched in 2023 to make property registrations in Karnataka easier was recently hit by a DDoS attack carried out using AI-powered bots.

    What is a DDoS attack? 

    • A Distributed Denial of Service (DDoS) attack is a type of cyberattack where multiple computers or bots flood a website or online service with excessive traffic, overwhelming its servers and causing it to slow down or crash.

    What are the key issues with Karnataka’s response to cyber attacks, specifically the DDoS attack on Kaveri 2.0?

    • Lack of Proactive Cybersecurity Measures: Despite previous cyber incidents like the 2017 WannaCry ransomware attack and the 2019 e-procurement portal hack, the State failed to implement robust preventive measures. The DDoS attack on Kaveri 2.0 in December 2024 – February 2025 exposed the absence of real-time threat monitoring systems.
    • Poor Coordination Between Departments: The e-Governance Department did not involve the State cyber crime police until February 7, 2025, despite weeks of disruption. Resistance within departments to share cybersecurity concerns with law enforcement delayed incident response, worsening the crisis.
    • Lack of a Dedicated Cybersecurity Infrastructure: Karnataka lacks a Cyber Security Operation Centre like Maharashtra and Odisha. A ₹20 crore cybersecurity centre, proposed in February 2023, was scrapped after the new government took over, leaving critical digital infrastructure vulnerable.
    • Government Response and Security Measures: While the government has initiated a police probe and FIR registration under the Information Technology Act, and the Kaveri 2.0 application has been restored with enhanced security measures,
      • Karnataka launched a cyber security policy in 2024 to combat rising cybercrime, focusing on awareness, skill building, and industry promotion.

    How have past attacks influenced the current state of cyber security?

    • Failure to Implement Robust Cybersecurity Measures: Despite the 2017 WannaCry ransomware attack on the Karnataka State Data Centre and the 2019 e-Procurement portal hack (₹11.5 crore stolen), the state did not establish strong preventive mechanisms.
      • The lack of a dedicated Cyber Security Operation Centre resulted in inadequate monitoring and delayed responses to threats like the recent DDoS attack on Kaveri 2.0 (2024-25).
    • Persistent Coordination Gaps Between Departments: Earlier attacks, such as the 2022 cyber attack on NIMHANS, highlighted poor inter-departmental coordination, yet similar gaps persisted during the Kaveri 2.0 DDoS attack.
      • The e-Governance Department handled the crisis alone without informing the cyber crime police, delaying investigative action until February 7, 2025.
    • Neglect of Cybersecurity Infrastructure Development: A ₹20 crore Cyber Security Operation Centre, proposed in February 2023, was dropped in the May 2023 budget revision after a change in government.
      • Unlike Maharashtra and Odisha, which have dedicated cyber security setups, Karnataka still lacks a real-time threat detection system, leaving it vulnerable to repeated cyber attacks.

    Why has the coordination between the e-Governance Department and the State Police been ineffective during cyber incidents?

    • Lack of a Unified Cybersecurity Framework: Karnataka’s Cyber Security Committee (2023) is led by bureaucrats without police representation, unlike national-level bodies like I4C (Indian Cyber Crime Coordination Centre) and NCIIPC (National Critical Information Infrastructure Protection Centre).
      • This results in fragmented decision-making, where cybersecurity response remains within the e-Governance Department, sidelining law enforcement agencies.
    • Delayed Involvement of the Cyber Crime Police: In the Kaveri 2.0 DDoS attack (2024-25), the e-Governance Department did not inform the State cyber crime police until February 7, 2025—long after the attack began in December 2024.
      • Earlier incidents like the 2019 e-Procurement portal hack and 2022 NIMHANS cyber attack also saw delayed police involvement, allowing attackers more time to operate.
    • Departmental Hesitation to Engage Law Enforcement: Sources indicate a reluctance within the e-Governance Department to involve the police, possibly due to bureaucratic hurdles or fears of administrative scrutiny.
      • This lack of trust and procedural clarity has led to independent firefighting efforts rather than a coordinated response between technical teams and law enforcement.

    Why is it crucial for the state to establish a Cyber Security Operation Centre similar to the national model?

    • Real-Time Threat Detection and Response: The DDoS attack on Kaveri 2.0 (2024-25) went undetected for weeks, causing major disruptions in property registrations. A Cyber Security Operation Centre (CSOC) would enable 24/7 monitoring and early detection of cyber threats.
      • National agencies like I4C (Indian Cyber Crime Coordination Centre) and NCIIPC (National Critical Information Infrastructure Protection Centre) use AI-driven analytics and real-time threat intelligence to mitigate cyber risks, a model Karnataka must adopt.
    • Coordinated and Rapid Incident Response: Karnataka’s e-Governance Department handled the Kaveri 2.0 attack alone, only involving cyber crime police weeks later, delaying mitigation efforts.
      • A CSOC would centralize cybersecurity efforts, ensuring immediate coordination between technical experts, government departments, and law enforcement agencies to prevent prolonged disruptions.

    Way forward: 

    • Establish a Cyber Security Operation Centre (CSOC): Revive the ₹20 crore CSOC proposal with real-time threat monitoring, AI-driven analytics, and centralized coordination between government agencies and law enforcement.
      • Implement automated response mechanisms to detect and neutralize cyber threats before they escalate.
    • Strengthen Inter-Departmental Coordination and Cybersecurity Framework: Mandate immediate police involvement in cyber incidents and integrate law enforcement into cybersecurity governance structures like the Cyber Security Committee.
      • Conduct joint cybersecurity drills between the e-Governance Department, State Police, and IT experts to improve incident response efficiency.

    Mains PYQ:

    Q What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (UPSC IAS/2022)

  • [pib] Nationwide Mass Drug Administration (MDA) Campaign for Lymphatic Filariasis (LF) Elimination 

    Why in the News?

    Union Minister for Health and Family Welfare has launched the Annual Nationwide Mass Drug Administration (MDA) Campaign to eliminate Lymphatic Filariasis (LF).

    About Lymphatic Filariasis (LF):

    • Lymphatic Filariasis (LF), or “Hathi Paon”, is a mosquito-borne parasitic disease caused by Wuchereria bancrofti, Brugia malayi, and Brugia timori.
    • It affects the lymphatic system, leading to swelling of limbs (lymphoedema) and scrotal swelling (hydrocele), causing permanent disability.
    • LF spreads through repeated mosquito bites, making it a major public health challenge in tropical regions, including India.
    • India aims to eliminate LF by 2027, ahead of the 2030 Sustainable Development Goal (SDG) target.

    What is Mass Drug Administration (MDA)?

    • MDA is a large-scale public health campaign where anti-filarial medicines are administered to all eligible individuals in endemic areas to stop LF transmission.
    • Medication Regimens:
      • Double Drug Therapy (DA): Diethylcarbamazine Citrate (DEC) + Albendazole
      • Triple Drug Therapy (IDA): Ivermectin + DEC + Albendazole
    • Key Features of MDA
      • Door-to-door supervised drug administration ensures high coverage.
      • Drugs are safe, free, and given twice a year in targeted districts.
      • MDA is crucial for eliminating LF, as it reduces parasite transmission and protects millions from disability.
    • EXCEPTIONS: Children below 2 years, pregnant women, and seriously ill individuals.

    PYQ:

    [2017] Consider the following statements:

    1. In tropical regions, Zika virus disease is transmitted by the same mosquito that transmits dengue.

    2. Sexual transmission of Zika virus disease is possible.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • [pib] Exercise CYCLONE-III

    Why in the News?

    The 3rd edition of Joint Special Forces Exercise CYCLONE commenced at Mahajan Field Firing Ranges in Rajasthan.

    Note: India and the UAE held the ‘Desert Cyclone 2024’ joint military exercise in Rajasthan in January 2024. One must not get confused with this.

    About Exercise CYCLONE-III

    • It is the 3rd edition of the Joint Special Forces Exercise between India and Egypt, aimed at enhancing interoperability, joint tactical operations, and counter-terrorism capabilities.
    • The exercise is conducted at Mahajan Field Firing Ranges in Rajasthan from 10th to 23rd February 2025.
    • CYCLONE is an annual exercise, held alternately in India and Egypt.
      • The previous edition (CYCLONE-II) was conducted in Egypt in January 2024.
    • The exercise focuses on high-intensity special forces training in desert and semi-desert terrains.

    Features and Significance:

    • This exercise involves 25 personnel from each side, focusing on counterterrorism, CQB, hostage rescue, and heliborne operations in desert terrain.
    • The 48-hour final validation exercise tests combat strategies in semi-desert conditions, while an Indian defense technology showcase strengthens military ties.
    • The exercise enhances India-Egypt defense cooperation, improves joint counter-terrorism capabilities, and builds readiness for future operations.
    • It also boosts India’s strategic outreach in the Middle East and North Africa (MENA) region, reinforcing defense collaborations and regional security.

  • India introduces new HS code for GI-recognised Rice Varieties

    Why in the News?

    India has introduced a Harmonised System (HS) code for geographical indication (GI) recognised rice exports under an amendment to the Customs Tariff Act, 1975 announced by Finance Minister Nirmala Sitharaman in the 2025-26 Union Budget on February 1, 2025.

    About Harmonised System (HS) Code

    • HS Code is an internationally recognized classification system for traded goods, developed by the World Customs Organization (WCO).
    • It is used to standardize the identification of products in global trade, ensuring uniformity in customs procedures, tariffs, and trade policies.
    • The HS Code is a six-digit numerical code, categorized as follows:
      • First two digits: Represent the chapter of goods (e.g., “10” for cereals).
      • Next two digits: Indicate the heading (e.g., “06” for rice).
      • Last two digits: Define the subheading (e.g., “30” for semi-milled or wholly milled rice).
    • Countries can extend the HS Code beyond six digits to accommodate specific national requirements (e.g., India uses an 8-digit system).

    Impact of HS Code on GI Rice Exports:

    Trade experts believe that the introduction of an HS code will:

    • Facilitate GI rice exports, even when general rice exports are restricted.
    • Ensure better market access for specialty rice varieties in global markets.
    • Differentiate GI-tagged rice from conventional rice exports to prevent mislabelling.

    About the World Customs Organization (WCO):

    • The WCO is an intergovernmental organization responsible for overseeing and standardizing global customs regulations.
    • It was established in 1952 as the Customs Co-operation Council (CCC) and later renamed the WCO in 1994.
    • Key Functions of the WCO:
      • Develops and maintains the HS Code, used by over 200 countries and territories.
      • Regulates customs procedures, trade facilitation, and enforcement of trade laws.
      • Supports the fight against illegal trade, smuggling, and counterfeit goods.
    • The organization works closely with the World Trade Organization (WTO) and United Nations (UN) to promote global trade efficiency.
    • India is a member of the WCO and follows its HS classification system for trade regulations.
    • The WCO’s Revised Kyoto Convention (RKC) serves as a blueprint for India’s customs modernization efforts.

    PYQ:

    [2017] Consider the following statements:

    1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
    2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
    3. TFA came into force in January 2016.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

  • What has the Budget offered scientists?

    Why in the News?

    The Union Budget highlights science, technology, and innovation (STI) as important drivers of the country’s progress, supporting CSIR’s goal of making India more self-reliant and globally competitive.

    How will the 2025 budget impact scientific research funding?

    • Increased Funding for R&D: The Ministry of Science and Technology’s allocation sees a major boost due to a Rs 20,000 crore allocation for the R&D fund, increasing the total allocation from Rs 8,029 crore to Rs 28,508 crore.
    • Support for Deeptech Startups: An additional Rs 10,000 crore will be allocated to the Small Industries Development Bank of India Fund for Startups, aimed at enhancing the “deep tech ecosystem,” particularly for startups focusing on AI, biotech, and space technology.
    • Focus on Mission-Mode Projects: Funding is heavily directed towards specific mission-mode programs such as nuclear energy, AI, and the Jal Jeevan Mission, potentially at the expense of curiosity-driven research.
    • CSIR’s Role in National Missions: The budget aligns CSIR’s various missions (Aroma, Floriculture, Millets, Cotton, Green Hydrogen, etc.) with national initiatives, emphasizing value-added farming, self-reliance, and sustainable development.
    • Concerns Regarding Basic Science and Education: Concerns exist regarding reduced funding for institutions like IISc and IISERs, a lower percentage increase in funding for Central Universities compared to IITs, and the overall low allocation for education as a percentage of GDP.

    What specific allocations are being made for science and technology in the 2025 budget?

    • Ministry of Electronics and Information Technology (MeitY) Funding Increase: The budget for MeitY has been increased by 48%, totalling over ₹26,000 crores. This substantial boost is directed towards initiatives such as the IndiaAI Mission and expanded Production-Linked Incentive (PLI) schemes for semiconductors, large-scale electronics, and IT hardware.
    • IndiaAI Mission: The IndiaAI Mission has received an allocation of ₹2,000 crore for FY25, marking an almost 11-fold increase from the previous year’s revised estimate of ₹173 crore. This funding aims to enhance artificial intelligence research and development across various sectors.
    • Semiconductor and Electronics Manufacturing Support: Allocations for the modified scheme to establish compound semiconductors, silicon photonics, sensor fabs, and semiconductor assembly and testing facilities have risen from ₹2,500 crore to ₹3,900 crore. Additionally, the scheme for setting up semiconductor fabs has seen an increase from ₹1,200 crore to ₹2,499.96 crore.
    • Research and Development Fund: A dedicated fund of ₹20,000 crore has been established to promote research, development, and innovation, particularly supporting private-sector-led initiatives. This fund underscores the government’s commitment to advancing technological progress and fostering innovation.
    • Research Fellowships and Deep Tech Support: The government plans to offer 10,000 research fellowships over the next five years under the Prime Minister’s Research Fellowship scheme, focusing on advancing research in technology at premier institutions like IITs and IISc.

    Are there any new initiatives for scientific research in the 2025 budget?

    • Increased Focus on Health Research: There’s a greater emphasis on health research and biomedical devices, driven by concerns identified in the Economic Survey regarding the harms of ultra-processed foods. This suggests new initiatives and funding to address these health challenges through scientific research.
    • Deeptech Startup Boost: The expansion of the SIDBI Fund for Startups with an additional Rs 10,000 crore specifically targets deeptech startups in AI, biotech, and space technology. This indicates a new initiative to foster innovation and entrepreneurship in these advanced technology areas.
    • AI Education Push: The allocation of funds towards a Centre of Excellence in AI education signifies a new initiative to develop expertise and talent in artificial intelligence. The hope is that this center will also set benchmarks for the beneficial adoption of AI in Indian society.
    • Green Hydrogen Mission: Spearheaded by CSIR, this mission supports research and development towards clean energy transition.
    • Alignment of CSIR Missions: While not entirely new initiatives, the strategic alignment and emphasis on CSIR’s existing missions (like Aroma, Floriculture, Millets, Cotton, etc.) with national goals represents a renewed focus and coordinated effort that will likely drive scientific research in those specific areas.

    Way forward: 

    • Balanced Research Funding: Ensure a more balanced allocation between mission-driven projects and fundamental research to sustain long-term scientific innovation and discovery.
    • Strengthening Scientific Workforce: Expand research fellowships, enhance funding for premier institutions, and create stronger industry-academia collaborations to develop a skilled workforce in emerging technologies.

  • [pib] TROPEX-25

    Why in the News?

    The 2025 edition of TROPEX is currently underway in the Indian Ocean Region, involving all operational Indian Naval units along with significant participation from the Indian Army, Indian Air Force (IAF), and the Indian Coast Guard (ICG).

    About Theatre Level Operational Exercise (TROPEX)

    • TROPEX is the Indian Navy’s flagship biennial operational-level exercise, designed to test and enhance India’s maritime defense capabilities.
    • It is conducted in the Indian Ocean Region with participation from the Indian Navy, Indian Army, Indian Air Force (IAF), and Indian Coast Guard (ICG).
    • It was first held in April 2005.
    • TROPEX-25 is being conducted over a three-month period from January to March 2025 in multiple phases:
    1. Harbour Phase: Focuses on strategic planning, joint training, and coordination before moving to sea operations.
    2. Sea Phase: Simulates real-time combat scenarios to assess the Navy’s operational readiness.
    3. Cyber and Electronic Warfare Operations:  Integrates modern cybersecurity and electronic warfare tactics to counter digital threats.
    4. Live Weapon Firings:  Includes real-world missile and torpedo firings to test combat effectiveness.
    5. Amphibious Exercise (AMPHEX):  Conducts joint land-sea operations, involving amphibious landings and coastal defence drills.

    Mandate and Significance of TROPEX-25

    TROPEX-25 plays a pivotal role in:

    • Strengthening India’s maritime dominance in the Indian Ocean Region.
    • Enhancing interoperability and joint warfighting capabilities among the Navy, Army, Air Force, and Coast Guard.
    • Testing real-world combat readiness in dynamic operational environments.
    • Securing national maritime interests through proactive military preparedness.
    • Projecting India’s naval power to safeguard maritime trade routes and counter emerging threats.

  • Economic Capital Framework (ECF) of the RBI

    Why in the News?

    The Reserve Bank of India (RBI) has initiated an internal review of its Economic Capital Framework (ECF) to assess the contingency risk buffer (CRB) and overall capital reserves.

    What is Economic Capital Framework (ECF)?

    • The ECF is the risk management policy used by the RBI to determine:
    1. How much capital and reserves the central bank should maintain for financial stability.
    2. How much surplus the RBI can transfer to the government under Section 47 of the RBI Act, 1934.
    • Key Components
    1. Contingency Risk Buffer (CRB): A financial safeguard for monetary, fiscal, credit, and operational risks.
    2. Total Economic Capital: Includes capital, reserves, risk provisions, and revaluation balances.
    • Surplus Transfers:
      • FY24: ₹2.11 lakh crore (highest-ever surplus).
      • FY23: ₹87,416 crore | FY22: ₹30,307 crore | FY21: ₹99,122 crore.

    Review of ECF and Its Significance

    • The Bimal Jalan Committee’s recommendations (valid till June 2024) required a periodic reassessment.
    • As of March 31, 2024, the CRB stands at 6.5%, and the RBI is evaluating whether changes are needed.
    • Potential Impact
      • Higher CRB → More financial stability, but lower surplus transfers to the government.
      • Lower CRB → More funds available for government spending, but with potential financial risks.
    • Impact on Budget: RBI’s surplus plays a major role in fiscal planning for infrastructure & welfare programs.
    • The RBI must ensure financial resilience while also supporting economic development.

    About Bimal Jalan Committee (2018)

    • Objective: To review RBI’s reserve management and surplus transfer policy.
    • Key Recommendations:
      • CRB should be between 5.5% – 6.5% of the balance sheet.
      • Periodic ECF review every 5 years.
      • Only realized surplus (net income) should be transferred to the government.
      • Revaluation reserves should not be used for operational losses.
    • Impact:
      • Led to higher surplus transfers and a structured capital policy.
      • Strengthened transparency & financial governance in RBI’s operations.

     

    PYQ:

    [2017] Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

    1. It decides the RBI’s benchmark interest rates.
    2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
    3. It functions under the chairmanship of the Union Finance Minister.

    Select the correct answer using the code given below:

    (a) 1 only
    (b) 1 and 2 only
    (c) 3 only
    (d) 2 and 3 only

     

  • [pib] SASCI Scheme

    Why in the News?

    The Government of India has sanctioned 40 projects across 23 states, allocating ₹3295.76 crore under the ‘Special Assistance to States for Capital Investment (SASCI) Scheme for the Financial Year 2024-25.

    What is the SASCI Scheme?

    • The SASCI Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.
    • Initially introduced as a post-COVID recovery measure, it has been expanded in FY 2023-24 with an allocation of ₹1.3 lakh crore.
    • The scheme funds infrastructure projects, urban reforms, tourism development, and sustainability initiatives.
    • Structural Mandate: The scheme has eight parts based on states’ share of central taxes:
    1. General Capital Assistance (₹1 lakh crore): Allocated based on states’ share of central taxes.
    2. Vehicle Scrappage & Testing Facilities:  Incentives for phasing out old vehicles & setting up automated testing centers.
    3. Urban Planning Reforms: Encourages modern land-use planning & governance improvements.
    4. Urban Finance Reforms:  Strengthens municipal revenue models & financial sustainability.
    5. Housing for Police Personnel: Funds residential units for police & their families.
    6. Cultural & Economic Development (Unity Malls):  Promotes One District One Product (ODOP), Make in India & local entrepreneurship.
    7. Digital Libraries at Panchayat/Ward Levels: ₹5,000 crore for library infrastructure & digital learning access.
    8. Development of Iconic Tourist Centres:  Global-scale branding & infrastructure for major tourism hubs.

    Features & Significance:

    • Boosts capital investment to stimulate demand and job creation.
    • Encourages reforms in urban governance, infrastructure, and sustainability.
    • Promotes responsible tourism and global branding of iconic destinations.
    • Strengthens local industries through One District One Product (ODOP).
    • Improves public services like policing, water supply, and rural roads.

    PYQ:

    [2016] Which of the following is/are included in the capital budget of the Government of India?

    1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
    2. Loans received from foreign governments
    3. Loans and advances granted to the States and Union Territories

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

  • What does the Budget offer Railways?

    Why in the News?

    The Railway Budget was once a major event before the Union Budget. Since merging with the general Budget in 2017, Indian Railways has lost prominence, with no mention in the July 2024 or February 2025 Budgets.

    What specific safety measures are planned for the Railways?

    • Enhanced Safety Budget – ₹1,16,514 crore allocated for safety-related initiatives, including infrastructure upgrades and accident prevention.
    • Kavach Train Protection System – No new expansion beyond the initial 1,465 km; implementation delays remain a concern.
    • Grade Separation & Track Upgrades – Elimination of level crossings, doubling of railway lines, and gauge conversion to reduce congestion and accidents.
    • Modern Signaling & Electrification – Upgrading signaling systems and achieving 95% electrification to improve train control and safety.
    • Station & Train Modernization – Redevelopment of key stations and introduction of new Vande Bharat and Amrit Bharat trains with better safety features.

    Which states will benefit the most from the railway budget allocations?

    • Uttar Pradesh – Major railway station redevelopments (e.g., Ayodhya, Varanasi), new Vande Bharat trains, and increased connectivity through high-speed rail projects.
    • Maharashtra – Mumbai-Ahmedabad High-Speed Rail (Bullet Train), Western Dedicated Freight Corridor, and urban railway modernization projects.
    • Gujarat – High investment in freight corridors, bullet train project, and Amrit Bharat station redevelopment.
    • West Bengal – Expansion of railway network, doubling of tracks, electrification, and modernization of key stations like Howrah and Sealdah.
    • Tamil Nadu – Focus on gauge conversion, station redevelopment (e.g., Chennai), and enhanced connectivity with new semi-high-speed trains.
    • Bihar & Jharkhand – Increased railway line expansion and connectivity improvements, particularly for freight movement and passenger services.
    • Rajasthan & Madhya Pradesh – Dedicated freight corridor benefits, track doubling, and station upgrades for better passenger services.

    How will the new Amrit Bharat trains improve connectivity?

    • Infrastructure Development & New Tracks: Expansion of railway lines to extend connectivity to new areas to ensure broader access to transportation. Example: Increased track laying to enhance regional rail access.
    • Modernization of Stations: Upgrading stations to improve passenger experience and integrate different modes of transport. Example: Redevelopment projects enhancing station facilities and efficiency.
    • Expansion of Rail Network to Underserved Areas: The introduction of Amrit Bharat trains will improve connectivity to tier-2 and tier-3 cities, bridging gaps in regional transportation. Example: Faster and more frequent services to cities like Hubli, Gorakhpur, and Siliguri.
    • Faster Travel Between Major Economic Hubs: These trains will operate at semi-high speeds, reducing travel time between key business and industrial centers. Example: Quicker connectivity between Mumbai–Surat and Bengaluru–Hyderabad, supporting trade and commerce.
    • Boost to Religious & Tourism Circuits: The new trains will enhance access to religious and tourist destinations, promoting cultural and economic growth. Example: Improved rail access to Ayodhya, Varanasi, Puri, and Rameswaram for pilgrimage travelers.
    • Better Regional Connectivity in the Northeast & Border Areas: Amrit Bharat trains will strengthen rail links in remote and border regions, enhancing security and development. Example: Enhanced rail connectivity in Arunachal Pradesh, Manipur, and Mizoram to integrate them with the national rail network.

    What are the challenges? 

    • Underwhelming Returns on Investment: Despite a ₹13 lakh crore investment in modernization and freight traffic is growing at just over 2%, failing to match India’s economic growth.
      • Passenger revenue is increasing, but ridership remains below pre-COVID levels, limiting overall gains.
    • Slow Implementation & Execution: Major projects like the New Delhi station redevelopment have been delayed for nearly a decade due to repeated re-tendering.
      • Safety initiatives like Kavach have seen no expansion beyond the initial 1,465 km rollout near Secunderabad.
    • Financial and Sustainability Concerns: Expenses are exceeding earnings, raising doubts about maintaining new infrastructure under the EPC model.
      • The aggressive electrification push has left 5,000 diesel locomotives worth ₹30,000 crore idle or underutilized, questioning cost-effectiveness.

    Way forward: 

    • Prioritize Efficient Implementation & Safety Expansion – Expedite key infrastructure projects, expand Kavach beyond the initial 1,465 km, and streamline bureaucratic approvals to prevent further delays.
    • Enhance Financial Sustainability & Asset Utilization – Optimize freight revenue growth, repurpose idle diesel locomotives strategically, and adopt a phased electrification approach to balance costs and efficiency.

    Mains PYQ:

    Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (UPSC IAS/2022)

  • How has the Budget allocated funds for urban development?

    Why in the News?

    The 2025 Budget has set up a ₹1 lakh crore Urban Challenge Fund to help cities grow and develop.

    What was the allocation for urban India?

    • Increased Allocation but Underutilization: The Housing and Urban Affairs Ministry received ₹96,777 crore for FY 2025-26, a 17% increase from the previous year. However, the Revised Estimate for 2024-25 stood at ₹63,669.93 crore, indicating significant underutilization of funds.
    • Urban Challenge Fund and PMAY Focus: A ₹1 lakh crore Urban Challenge Fund has been proposed for city redevelopment and water & sanitation projects, with ₹10,000 crore allocated for FY 2025-26. Additionally, ₹78,126 crore has been allocated to both rural and urban PMAY for housing development.
    • Support for Urban Workers and Street Vendors: The government aims to uplift urban workers through PM SVANidhi, which has benefited 68 lakh street vendors. The scheme will be revamped with enhanced bank loans, UPI-linked credit cards (₹30,000 limit), and capacity-building support to reduce reliance on informal sector loans.

    How has the reduction happened?

    • Decline in Direct Transfers to Urban Local Bodies (ULBs): With the abolition of octroi and the implementation of GST, ULBs lost a key revenue source, expecting compensation through central devolution. However, the central share for ULBs declined from ₹26,653 crore (last year) to ₹26,158 crore in 2025-26, increasing financial pressure on local bodies.
    • Cuts in Key Centrally Sponsored Schemes (CSS):
      • PMAY (Urban) faced a drastic cut, with its allocation reduced from ₹30,170.61 crore to ₹13,670 crore in the Revised Estimate (RE) for 2024-25.
      • AMRUT and Smart Cities Mission allocations fell below ₹10,400 crore, with almost no new funds for the Smart Cities Mission.
      • Swachh Bharat Mission (Urban) retained ₹5,000 crore, but RE shows only ₹2,159 crore was spent—a 56% underutilization.
    • Shift in Priorities Toward Capital-Intensive Metro Projects: While many urban development schemes saw cuts, metro rail projects received increased funding.
      • Metro projects’ allocation rose from ₹21,335.98 crore to ₹24,691.47 crore in RE (2024-25) and is further proposed to increase by 46% to ₹31,239.28 crore in 2025-26.
      • This shift prioritizes large infrastructure over comprehensive urban mobility, employment generation, and local governance funding.

    Does the Union Budget focus on capital-intensive projects? 

    • Priority to Large Infrastructure Projects: The budget significantly increases funding for metro rail projects (₹31,239.28 crore, up 46%), while allocations for urban schemes like PMAY (Urban), AMRUT, and Smart Cities Mission have been reduced or underutilized.
    • Reliance on Private Investment for Urban Development: The ₹1 lakh crore Urban Challenge Fund requires 50% private sector participation, which may slow implementation, shifting focus from government-driven urban welfare programs to capital-intensive projects.

    What next?

    • Urban Challenge Fund Implementation Risks: The government has introduced a ₹1 lakh crore Urban Challenge Fund, but 50% of the funding is expected from private investments.
      • Given the limited private sector participation in past urban initiatives like the Smart Cities Mission, relying on private funding could slow implementation.
    • Balancing Infrastructure with Livability and Sustainability: The budget favors metro expansion but lacks a broader focus on comprehensive urban mobility, employment generation, and sustainable urban planning.
      • Future policies must integrate green jobs, affordable housing, and local governance empowerment to create more inclusive cities.
    • Strengthening Financial Autonomy for Urban Local Bodies (ULBs): The decline in direct transfers and devolution post-GST has weakened ULB finances, forcing cities to raise taxes or cut essential services.
      • Strengthening municipal revenue sources, revising property tax frameworks, and ensuring timely fund disbursal can help cities plan better for growth.

    Conclusion: Need to Strengthen municipal revenue sources through property tax reforms, land monetization, and timely fund transfers, reducing dependency on central allocations. The government should ensure equitable investment in metro expansion, affordable housing, sanitation, and employment generation, fostering livable, sustainable, and inclusive urban growth.

    Mains PYQ:

    Q What are ‘Smart Cities’? examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for ‘Smart Villages’ in the light of PURA and RURBAN Mission. (UPSC IAS/2018)