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GS Paper: GS3

  • Shipbuilding Financial Assistance Scheme and Shipbuilding Development Scheme  

    Why in the News?

    The Ministry of Ports Shipping and Waterways notified operational guidelines for the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS).

    Shipbuilding Financial Assistance Scheme (SBFAS)

    • Objective Strengthen domestic shipbuilding and global competitiveness
       • Valid till 31 March 2036
       • Financial assistance 15 to 25 percent per vessel based on vessel category
       • Graded support for small normal large normal and specialised vessels
       • Stage wise disbursement linked to milestones
       • Shipbreaking Credit Note provides 40 percent of scrap value for vessels scrapped in Indian yards
       • Provision for National Shipbuilding Mission

    Shipbuilding Development Scheme (SbDS)

    • Focus on long term capacity and capability creation
       • Greenfield shipbuilding clusters and brownfield yard expansion
       • India Ship Technology Centre under Indian Maritime University
       • Greenfield clusters get 100 percent capital support via 50 50 Centre State SPV
       • Brownfield projects get 25 percent capital assistance
       • Includes Credit Risk Coverage Framework for pre shipment post shipment and vendor default risks
    Consider the following pairs: [2023]

    1. Kamarajar Port: First major port in India registered as a company. 

    2. Mundra Port: Largest privately owned port in India. 

    3. Visakhapatnam Port: Largest container port in India. 

    How many of the above pairs are correctly matched? 

    (a) Only one pair 

    (b) Only two pairs 

    (c) All three pairs 

    (d) None of the pairs

  • Revamped Distribution Sector Scheme (RDSS) 

    Why in the News?

    Installation of rooftop solar power plants is being expedited in Rajasthan under the Revamped Distribution Sector Scheme (RDSS) to reduce transmission and distribution losses and improve power supply quality.

    About Revamped Distribution Sector Scheme

    • Launched in July 2021
       • Implemented by the Ministry of Power
       • A reforms based and results linked scheme
       • Time period FY 2021 22 to FY 2025 26
       • Total outlay Rs. 3,03,758 crore
       • Objective is to transform the electricity distribution sector

    Key Objectives

    • Reduce Aggregate Technical and Commercial (AT and C) losses to 12 to 15 percent at pan India level
       • Reduce ACS ARR gap to zero by 2024 25
       • Ensure financially sustainable and operationally efficient DISCOMs
       • Improve quality, reliability, and affordability of power supply

    Prelims Pointers

    • RDSS replaced earlier distribution sector schemes
       • Focuses on smart metering and digitalisation
       • Links financial support with reform performance
       • Rooftop solar under RDSS helps reduce AT and C losses by local generation
    Which one of the following is a purpose of ‘UDAY’, a scheme of the Government? [2016]

    (a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy 

    (b) Providing electricity to every household in the countries by 2018 

    (c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time 

    (d) Providing for financial turnaround and revival of power distribution companies

  • Dhasan River 

    Why in the News?

    The National Green Tribunal, Principal Bench, New Delhi, dismissed an appeal challenging the cancellation of environmental clearance for sand mining in the Dhasan River in Jhansi district.

    About Dhasan River

    • A right bank tributary of the Betwa River
       • Betwa River is a tributary of the Yamuna
       • Flows through the Bundelkhand region of Madhya Pradesh and Uttar Pradesh
       • Known as Dasharna in the ancient period
    • Originates in Begumganj tehsil, Raisen district, Madhya Pradesh
       • Forms the south eastern boundary of Lalitpur district, Uttar Pradesh

    Infrastructure

    • Lehchura Dam is built across the Dhasan River
       • Primarily an irrigation dam
       • Supplies water through the Dhasan Canal System (DCS) for agricultural use

    Prelims Pointers

    • Dhasan is a right bank, not left bank tributary
       • Flows through Bundelkhand, a drought prone region
       • Ancient name Dasharna is important for history culture linkage
       • Sand mining issues fall under NGT jurisdiction
    Which of the following is/are the possible consequence/s of heavy sand mining in riverbeds? [2018] 

    1. Decreased salinity in the river 

    2. Pollution of groundwater 

    3. Lowering of the water-table 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

  • Plasser’s Quick Relaying System (PQRS) 

    Why in the News?

    The Northeast Frontier Railway achieved its highest-ever single-day mechanised track renewal of 1,033 track metres using Plasser’s Quick Relaying System.

    About Plasser’s Quick Relaying System

    • A modern semi-mechanised track relaying system used for rapid replacement of railway tracks
       • Developed by Plasser & Theurer
       • Designed to speed up track renewal while reducing traffic disruption
       • Enhances safety, reliability, and maintenance efficiency

    Key Features

    • Uses self-propelled portal cranes operating on an auxiliary track of 3400 mm gauge
       • Auxiliary track has the same centre line as the track being renewed
       • Portal cranes can self-load and unload materials from Bogie Flat Wagons (BFRs)
       • High lifting capacity up to 9 tonnes
       • Capable of handling 13 m long PRC sleeper panels
       • Suitable for new track construction and modernisation of existing tracks

    Benefits

    • Faster renewal of longer track lengths within shorter traffic blocks
       • Minimal disruption to train operations
       • Cost effective due to reduced manual labour
       • Lowers life-cycle maintenance costs
       • Improves precision and safety in track laying

    Prelims Pointers

    • PQRS is a semi-mechanised, not fully automated system
       • Uses portal cranes, not conventional cranes
       • Works in coordination with Bogie Flat Wagons
       • Key objective is rapid track renewal with minimal traffic block
    Consider the following statements: [2025]

    I. Indian Railways have prepared a National Rail Plan (NRP) to create a future ready railway system by 2028. 

    II. ‘Kavach’ is an Automatic Train Protection system developed in collaboration with Germany. 

    III. ‘Kavach’ system consists of RFID tags fitted on track in station section. 

    Which of the statements given above are not correct? 

    (a) I and II only (b) II and III only (c) I and III only (d) I, II and III

  • On petrol pricing in India

    Introduction

    Ethanol-blended petrol and pure petrol are treated as identical for pricing and taxation purposes, despite being distinct products from a production and tax standpoint. Ethanol is taxed under the GST regime, while petrol remains outside GST and is subject to central excise duty and state VAT. This dual structure has created inconsistencies in price reporting, tax recovery, and fiscal accountability, particularly as blending volumes expand.

    Why in the News

    India’s ethanol blending programme has scaled up sharply, rising from 1.5% in 2013-14 to nearly 20% by 2025-26, making ethanol a significant component of petrol sold nationwide. Despite this structural shift, fuel pricing disclosures and tax treatment remain unchanged, continuing to reflect 100% petrol. This is a sharp contrast with earlier years when petrol sold was chemically uniform. 

    Why Does Ethanol Blending Complicate Fuel Pricing?

    1. Distinct Products: Treats ethanol-blended petrol and pure petrol as identical despite different tax regimes.
    2. Tax Regime Split: Ethanol falls under GST, while petrol remains outside GST, subject to excise and VAT.
    3. Structural Shift: Reflects a major change in fuel composition without corresponding pricing reform.

    How Is Ethanol Taxed Compared to Petrol?

    1. GST on Ethanol: Levies 5% GST on ethanol used for blending.
    2. Excise on Petrol: Applies central excise duty and state VAT on petrol.
    3. Non-Recoverable GST: Prevents oil marketing companies from claiming input tax credit as petrol is non-GST.

    What Does the Cost Comparison Reveal?

    1. Ethanol Procurement Cost: Records a weighted average cost of ₹71.32 per litre in 2024-25, including ex-mill price, GST, and transport.
    2. Petrol Base Price: Stands at ₹53.07 per litre before taxes and dealer commission.
    3. Post-Excise Petrol Cost: Rises to ₹74.97 per litre after adding central excise duty.
    4. Cost Distortion: Makes ethanol appear costlier due to unrecoverable GST, not intrinsic price.

    How Is Retail Petrol Price Currently Structured?

    1. Base Price: ₹53.07 per litre.
    2. Central Excise Duty: ₹21.90 per litre.
    3. Dealer Commission: ₹4.40 per litre.
    4. State VAT: ₹15.40 per litre.
    5. Retail Selling Price: ₹94.77 per litre.
    6. Mismatch: Reflects pure petrol despite ethanol blending being standard.

    Why Is the Absence of a Blended Petrol Price Build-Up a Concern?

    1. No Published Break-Up: Omits ethanol share, procurement cost, and tax incidence.
    2. VAT Application: Applies state VAT on the entire blended fuel, including ethanol.
    3. Opacity: Obscures effective tax burden and fiscal transfers between Centre and States.
    4. Accountability Gap: Prevents assessment of blending’s economic and consumer impact.

    Is This a Case of Double Taxation?

    1. Core Issue: Not double taxation, but lack of clarity on component-wise taxation.
    2. GST-VAT Overlap: Taxes GST-paid ethanol again under VAT when blended.
    3. Fiscal Distortion: Treats blended fuel as pure petrol for revenue purposes.

    What Are the Benefits of Ethanol Blending?

    1. Energy Security: Reduces dependence on crude oil imports by substituting a portion of petrol with domestically produced biofuel.
    2. Foreign Exchange Savings: Lowers import bill by replacing imported fossil fuel with indigenous ethanol.
    3. Agricultural Income Support: Creates assured demand for sugarcane and foodgrain-based ethanol, stabilising farm incomes.
    4. Environmental Outcomes: Lowers carbon monoxide and particulate emissions due to cleaner combustion characteristics.
    5. Fuel Supply Diversification: Strengthens resilience of the energy system through diversification of transport fuels.
    6. Rural Industrialisation: Supports ethanol distilleries and ancillary industries in rural and semi-urban areas.
    7. Climate Commitments: Contributes to India’s Nationally Determined Contributions by reducing fossil fuel intensity.

    Way Forward

    1. Price Disclosure Reform: Publishes a separate price build-up for ethanol-blended petrol, reflecting ethanol share, procurement cost, and tax treatment.
    2. Tax Incidence Clarity: Separates GST-taxed ethanol and excise-taxed petrol components in retail price reporting.
    3. Fiscal Coordination: Aligns Centre-State taxation frameworks to reflect blended fuel composition.
    4. Input Tax Credit Rationalisation: Addresses non-recoverable GST on ethanol to prevent artificial cost inflation.
    5. Regulatory Updating: Revises fuel pricing norms to reflect E20 as the default retail product rather than pure petrol.
    6. Consumer Transparency: Enables public access to component-wise fuel pricing to ensure accountability.
    7. Policy Evaluation Mechanism: Facilitates assessment of whether ethanol blending lowers costs for the economy and consumers.

    Conclusion

    Ethanol blending marks a significant advancement in India’s energy transition and import substitution strategy. However, the continuation of petrol pricing and taxation practices designed for a pre-blending era has created fiscal opacity and accountability gaps. Aligning fuel price disclosure and tax treatment with the blended fuel reality is essential to ensure transparency, strengthen cooperative federalism, and enable an evidence-based assessment of ethanol blending’s true economic and consumer impact.

    PYQ Relevance

    [UPSC 2019] Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.

    Linkage: The question tests understanding of India’s indirect tax reforms, fiscal federalism, and revenue mobilisation under GST (GS III-Taxation). Petrol’s exclusion from GST, highlighted in the ethanol blending debate, explains the persistence of tax distortions and opaque fuel pricing despite GST reforms.

  • Camellia sinensis

    Why in the News?

    • The Food Safety and Standards Authority of India clarified that a beverage can be legally called tea only if it is derived from the plant Camellia sinensis.

    About Camellia sinensis

    • Belongs to the family Theaceae
    • Commonly known as the tea plant
    • Primary source of green tea, black tea, oolong tea, and white tea
    • Grows as a shrub or evergreen tree
    • Can reach a height of up to 16 metres
    • Widely cultivated on mountain slopes
    • Thrives at altitudes up to 2200 metres

    Required Climatic Conditions

    • Temperature range of 15°C to 23°C
    • Requires a warm and humid climate
    • Needs at least 5 hours of sunlight daily
    • Annual rainfall of 150 to 300 cm, evenly distributed
    • Prefers slightly acidic, calcium free soil
    • Requires porous sub soil
    • Sloping terrain essential for proper drainage

    Global Distribution

    • Cultivated in subtropical and warm temperate regions
    • Native to South east Asia
    • Major tea producing countries include China, India, Bangladesh, Bhutan, Japan, Korea and Malaysia

    Prelims Pointers

    • All true teas come from Camellia sinensis
    • Herbal or flower infusions are not tea under FSSAI norms
    • Tea prefers acidic soils and high rainfall
    • Oxidation level differentiates green, oolong, black, and white teas
    Though coffee and tea both are cultivated on hill slopes, there is some difference between them regarding their cultivation. In this context, consider the following statements: (2010)

    1. Coffee plant requires a hot and humid climate of tropical areas whereas tea can be cultivated in both tropical and subtropical areas. 

    2. Coffee is propagated by seeds but tea is propagated by stem cuttings only. 

    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

  • Quality Council of India 

    Why in the News?

    • The Quality Council of India recently announced a comprehensive set of next generation quality reforms aimed at strengthening India’s quality ecosystem across healthcare, laboratories, MSMEs, and manufacturing sectors.

    About Quality Council of India (QCI)

    • Non profit autonomous organisation
    • Registered under the Societies Registration Act XXI of 1860
    • Established in 1997
    • Set up jointly by the Government of India and Indian industry

    Industry Associations Involved

    • ASSOCHAM
    • Confederation of Indian Industry
    • Federation of Indian Chambers of Commerce and Industry

    Administrative Control

    • Functions under the Department for Promotion of Industry and Internal Trade
    • Department under the Ministry of Commerce and Industry

    Key Functions of QCI

    • Acts as the national accreditation body of India
    • Provides a framework for independent third party assessment of Products
    • Promotes adoption of quality standards related to
    • Quality Management Systems
    • Food Safety Management Systems
    • Product certification and inspection bodies
    • Plays a key role in propagation and adherence to quality standards across sectors
    • Leads the National Quality Campaign for a nationwide quality movement

    Boards and Divisions under QCI

    • National Accreditation Board for Testing and Calibration Laboratories (NABL)
    • National Accreditation Board for Hospitals and Healthcare Providers (NABH)
    • National Accreditation Board for Education and Training (NABET)
    • National Accreditation Board for Certification Bodies (NABCB)
    • National Board for Quality Promotion (NBQP)
    With reference to ‘Quality Council of India (QCI)’, consider the following statements: (2017)

    1. QCI was set up jointly by the Government of India and the Indian Industry. 

    2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government. 

    Which of the above statements is/are correct? 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

  • Titan

    Why in the News?

    Scientists have re examined data from NASA’s Cassini spacecraft and suggested that Saturn’s largest moon Titan may not have a global subsurface ocean, contrary to earlier studies.

    About Titan

    • Titan is the largest moon of Saturn
      • Second largest moon in the solar system, after Ganymede
      • Discovered in 1655 by Christiaan Huygens
      • Nearly 50 percent wider than Earth’s Moon
      • Only moon with a dense atmosphere
      • Atmosphere dominated by nitrogen with methane
      • Only body besides Earth with stable surface liquids
      • Presence of rivers, lakes, and seas
      • Liquids composed of methane and ethane

    Scientific Significance

    • Earlier models suggested a subsurface ocean
    • New findings indicate uncertainty in the existence or thickness of such an ocean
    • Important for understanding Titan’s internal structure
    • Affects assessment of potential habitability
    • Relevant for future planetary exploration missions

    Cassini Spacecraft

    • Cassini spacecraft was a joint mission of NASA, ESA, and ASI
    • Launched in 1997
    • First spacecraft to orbit Saturn
    • Studied Saturn, its rings, and moons
    • Carried the Huygens probe
    • Huygens landed on Titan in 2005
    • Provided first direct surface data from Titan
    Which of the following pairs is/are correctly matched? (2014)

    Spacecraft — Purpose: 

    I. Cassini-Huygens: Orbiting the Venus and transmitting data to the Earth. 

    II. Messenger: Mapping and investigating Mercury. 

    III. Voyager 1 and 2: Exploring the outer solar system. 

    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 only

  • GCGs keep India’ technology job market alive as IT lags

    Introduction

    Global Capability Centres are offshore subsidiaries of multinational corporations established to handle technology, engineering, analytics, and innovation functions. In India, GCCs are increasingly replacing traditional IT services firms as the primary creators of high-value technology jobs. Their rapid expansion signals a structural transformation in the nature of work, skill demand, and geographic dispersion of technology employment.

    Why in the News

    Global Capability Centres (GCCs) have emerged as the primary drivers sustaining India’s technology job market amid a hiring slowdown by large IT services firms. During October-December FY26, GCCs recorded 5-7% sequential growth and 48% workforce expansion plans, contrasting sharply with muted IT hiring. India currently hosts 1,850 GCCs employing nearly 2 million professionals, with projections of 2,400 GCCs by 2030, employing over 3 million workers and generating a $25 billion market size. The transition of GCCs from cost-arbitrage centres to strategic hubs for AI, R&D, and specialised digital work marks a qualitative shift in India’s technology employment trajectory.

    What are Global Capability Centres (GCCs)?

    1. Global Capability Centres (GCCs) are wholly-owned offshore units of multinational corporations established to deliver core, high-value functions such as technology development, data analytics, research and development, finance, risk management, and enterprise AI solutions.
    2. Ownership structure: Operate as captive centres under direct control of parent multinational firms.
    3. Functional role: Handle strategic and mission-critical operations, not routine outsourcing tasks.
    4. Evolutionary shift: Transitioned from cost-arbitrage back offices to innovation, R&D, and decision-support hubs.
    5. Indian context: India hosts the world’s largest concentration of GCCs due to its skilled workforce, digital infrastructure, and cost competitiveness.
    6. Economic significance: Contribute to high-skill employment, technology transfer, and integration into global value chains.

    Why are GCCs sustaining technology hiring when IT services firms are slowing?

    1. Hiring resilience: Demonstrated 5-7% sequential growth during Q3 FY26 despite industry-wide slowdown.
    2. Workforce expansion intent: 48% of GCCs reported active workforce expansion plans for the coming year.
    3. Structural insulation: Operate as captive centres aligned to parent firms’ long-term strategies rather than cyclical client demand.

    How has the role of GCCs evolved beyond cost arbitrage?

    1. High-value pivot: Transition from back-office operations to specialised, strategic, and hyperactive roles.
    2. Capability creation: Function as centres of AI adoption, enterprise AI transition, and advanced analytics.
    3. Talent positioning: Serve as strategic cores for high-end talent and R&D, not merely support units.

    What is the scale and future trajectory of GCC expansion in India?

    1. Current footprint: 1,850 GCCs employing ~2 million professionals.
    2. Projected growth: 2,400 GCCs by 2030, employing over 3 million workers.
    3. Economic value: Expected to generate $25 billion market size by 2030.
    4. Enterprise integration: Increasing integration into global decision-making and innovation pipelines.

    How are GCCs reshaping India’s technology geography?

    1. Non-metro diffusion: Growth spreading beyond Tier I cities to Nagpur, Indore, Coimbatore, and other Tier II-III cities.
    2. Quarterly growth rate: Non-metro GCC employment grew at 8-9% per quarter.
    3. Workforce decentralisation: Expansion supports regional talent absorption and reduces metropolitan concentration.

    Why do GCC jobs command higher salaries than IT services roles?

    1. Compensation premium: GCCs offer 12-20% higher salaries compared to IT services firms.
    2. Skill intensity: Higher pay reflects demand for specialised, AI-driven, and leadership roles.
    3. Leadership expansion: Leadership talent pool in GCCs grew from 88,600 to 90,700 between Dec 2024 and Dec 2025.

    How does GCC growth compare with traditional IT services employment?

    1. Net additions: GCCs added 3,400 leaders, increasing total leadership strength from 44,000 to 47,400.
    2. Growth rate: 7.7% growth in GCC leadership roles compared to 2.4% growth in IT services.
    3. Structural contrast: Indicates stronger long-term expansion prospects for GCC-driven employment.

    Conclusion:

    The rise of Global Capability Centres marks a structural shift in India’s technology economy from volume-led IT services to value-driven, innovation-centric employment. While GCCs strengthen India’s position in global digital and AI value chains, sustaining long-term and inclusive growth will depend on aligning skill development, regional dispersion, and workforce readiness with this high-end transformation.

    PYQ Relevance

    [UPSC 2023] What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.

    Linkage: The question assesses the depth, quality, and inclusiveness of digitalisation in India’s economic transformation. The expansion of GCCs as AI- and data-driven enterprise hubs reflects advanced digitalisation, while also exposing gaps in skill readiness and digital inclusion.

  • Himalayan Red Fox 

    Why in the News?

    A roadside sighting of a Himalayan Red Fox near Pangong Tso in Ladakh went viral on social media. Wildlife authorities cautioned that human interaction with wild animals can disturb their natural behaviour and pose ecological risks.

    About Himalayan Red Fox

    • Subspecies of the widespread red fox
      • One of the most adaptable predators of high altitude Himalayan ecosystems

    Conservation Status

    • Classified as Least Concern on the IUCN Red List

    Distribution

    • Native to the Himalayan mountain range
      • Found in India, Nepal, Bhutan, Tibet
      • In India, distributed across Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh

    Key Facts about Pangong Tso

    • High altitude endorheic lake in the Ladakh Himalayas
      • One third lies in India and two thirds in China
      • World’s highest saltwater lake
      • Known for changing colours such as blue, green, and reddish shades

    Prelims Pointers

    • Himalayan Red Fox shows high ecological adaptability
      • Pangong Tso is saline and landlocked
      • Wildlife disturbance from tourism is an emerging conservation concern
      • Least Concern species can still face localised threats
    Consider the following: (2012)

    1. Black-necked crane 

    2. Cheetah 

    3. Flying squirrel 

    4. Snow leopard. 

    Which of the above are naturally found in India? 

    (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1, 2, 3 and 4