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Insolvency and Bankruptcy Code

[6th June 2025] The Hindu Op-ed: Is IBC an effective resolution tool? | Explained

PYQ Relevance:

[UPSC 2018] How far do you agree with the view that tribunals curtail the jurisdiction of ordinary courts? In view of the above, discuss the constitutional validity and competency of the tribunals in India.

Linkage: The Insolvency and Bankruptcy Code (IBC), India’s first comprehensive bankruptcy law enacted in 2016, fundamentally relies on a specialized tribunal system for its implementation. This system includes the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). The effectiveness of the IBC as a resolution tool is intrinsically linked to the efficiency, competency, and operational challenges faced by these tribunals.

 

Mentor’s Comment:  India’s Insolvency and Bankruptcy Code (IBC), started in 2016, has been running for over eight years now. It has helped recover ₹3.89 lakh crore with a recovery rate of 32.8%, changing how companies deal with unpaid debts. But delays in courts, problems after settlements, and a recent Supreme Court decision on Bhushan Steel have created new worries.

Today’s editorial will talk about the effectiveness of the Insolvency and Bankruptcy Code (IBC) in India. It will help with GS Paper II (Policy Making) and GS Paper III (Banking).

_

Let’s learn!

Why in the News?

As India works towards becoming a $5 trillion economy, there is growing discussion about whether the IBC is ready for the future, whether its decisions are respected, and how efficient the courts are in handling cases.

Why was the Insolvency and Bankruptcy Code (IBC) enacted in India in 2016?

  • To Establish a Time-bound Resolution Mechanism: The IBC aimed to replace India’s slow and fragmented insolvency system with a fast-track process for resolving distressed assets within a maximum of 330 days. Eg: Earlier, recovery through legal channels often took years; under IBC, cases like Essar Steel were resolved with clear timelines.
  • To Shift Control from Debtors to Creditors: It empowered creditors by giving them control over the insolvency process and discouraging willful default. Eg: In the case of Bhushan Steel, creditors approved Tata Steel’s resolution plan, overriding promoter control.
  • To Improve Recovery Rates and Credit Culture: IBC sought to improve debt recovery rates and create a culture of responsible borrowing and repayment. Eg: As per IBBI data, creditors have recovered over ₹3.89 lakh crore with an average recovery rate of 32.8%, much higher than earlier systems.

What makes IBC the preferred route for debt recovery according to the RBI and IBBI data?

  • Highest Share in Total Recoveries: According to the RBI’s 2024 report, the IBC accounted for 48% of all recoveries made by banks in FY 2023-24, making it the dominant recovery mechanism. Eg: Compared to other channels like DRTs and SARFAESI, IBC recovered nearly half of total dues in just one financial year.
  • Better Realisation Than Liquidation: As per IBBI, resolution plans under IBC are yielding 93.41% of the fair value and 170.1% of liquidation value, showing greater efficiency. Eg: In the case of Electrosteel Steels, creditors recovered more than they would have in a liquidation scenario.
  • Timely Resolution and Settlement: The IBC’s time-bound process has led to early settlements, with 30,310 cases settled before admission, involving defaults worth ₹13.78 lakh crore. Eg: Companies facing insolvency threats often clear dues or settle quickly, improving the overall credit discipline.

How has the IBC impacted the credit culture and corporate governance in India?

  • Improved Credit Discipline: The IBC has fostered a repayment-oriented credit culture by creating a credible threat of insolvency, discouraging willful defaults. Eg: The Supreme Court observed that “the defaulter’s paradise is lost,” reflecting a clear shift in borrower behavior post-IBC.
  • Reduction in NPAs: The IBC has contributed to a sharp fall in Gross Non-Performing Assets (NPAs), which declined from 11.2% in 2018 to 2.8% in 2024 for scheduled commercial banks. Eg: Many firms have restructured or repaid loans early to avoid IBC proceedings, improving asset quality in the banking sector.
  • Boosted Corporate Governance Standards: Firms resolved under IBC show better board practices, including a rise in the number of independent directors, enhancing transparency and accountability. Eg: A study by IIM Bangalore showed firms post-resolution had more professionalised management and stronger compliance norms.

What are the key challenges currently affecting the effectiveness of the IBC framework?

  • Judicial Delays and Backlogs: Delays in approvals by the National Company Law Tribunal (NCLT) and prolonged litigation undermine the IBC’s goal of time-bound resolution. Eg: Even after creditor approval, resolution plans like that of Jaypee Infratech have been stuck for years due to legal battles, leading to erosion in asset value.
  • Post-resolution Uncertainty: Lack of legal finality and frequent challenges after plan approval create investor hesitation and risk derailment of settled cases. Eg: In the Bhushan Power and Steel case, a previously approved resolution plan was reopened, shaking confidence in the system.
  • Inadequate Framework for Emerging Assets: The IBC lacks clear mechanisms to deal with issues like intellectual property valuation, employee dues, and tech continuity, making it unfit for resolving non-traditional businesses. Eg: Tech start-ups and IP-heavy firms may not be efficiently resolved under current provisions, leading to value destruction.

Why is the Bhushan verdict seen as a setback?

  • Erodes Commercial Certainty: The verdict questioned a resolution plan that had already been approved and operational for years, undermining the finality of the IBC process. Eg: The reopening of the Bhushan Power and Steel Ltd. case raised fears that even completed transactions are not immune from future legal scrutiny.
  • Deters Investor Confidence: If resolution applicants fear judicial reversal after making large investments, they may hesitate to participate, weakening the IBC’s appeal. Eg: A successful bidder may now think twice before committing to a resolution plan if legal sanctity isn’t guaranteed.
  • Delays in Execution and Recovery: Continuous litigation post-approval increases the risk of liquidation for otherwise viable firms due to delayed implementation. Eg: In the Bhushan case, years of uncertainty stalled asset utilisation, resulting in a loss of economic value.

Way forward: 

  • Strengthen Tribunal Infrastructure and Capacity: Expand the capacity of NCLT and NCLAT by appointing more judges, improving case management systems, and digitising proceedings to reduce delays and ensure time-bound resolutions.
  • Ensure Legal Finality and Commercial Certainty: Introduce clear jurisprudential safeguards to prevent post-resolution litigations and uphold the sanctity of approved resolution plans, thereby boosting investor confidence and preserving the IBC’s credibility

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Foreign Policy Watch: India – EU

A Eurocentric reset, a gateway for India

Why in the News?

Recently, U.K. Prime Minister Keir Starmer’s move to renew relations with the European Union is an important change in post-Brexit policy that has big effects around the world, especially for India.

What is the significance of the new U.K.-EU agreement for India?

  • Simplifies Trade and Regulatory Compliance: The agreement harmonizes food standards, fishing rights, and customs coordination between the U.K. and EU, making it easier for Indian exporters to comply with a single set of rules instead of two separate regimes. Eg: Indian pharmaceutical companies supplying over 25% of the U.K.’s generic medicines could benefit from faster unified approvals, reducing costs and delays.
  • Strengthens Strategic Diplomatic Relations: Renewed U.K.-EU cooperation offers India a chance to enhance multilateral ties and align foreign policies with key Western partners on issues like defence and Indo-Pacific security. Eg: India’s existing partnerships with France, Germany, and the U.K. on defence modernization could deepen with a coordinated U.K.-EU approach.
  • Boosts Talent Mobility and Diaspora Engagement: The agreement’s border and migration cooperation may ease movement for Indian students and professionals across the U.K. and EU, expanding educational and employment opportunities. Eg: In 2024, the U.K. issued over 110,000 student visas to Indian nationals, a number likely to grow with improved mobility frameworks.

How could the U.K.-EU reset impact Indian exports?

  • Simplified Compliance and Reduced Costs: A harmonised U.K.-EU regulatory framework will help Indian exporters by simplifying compliance, reducing redundant paperwork, and lowering operational costs across key sectors like pharmaceuticals, textiles, seafood, and agro-products. Eg: Indian seafood exports worth around ₹60,523 crore ($7.38 billion) in FY2024 could face fewer trade barriers due to aligned food standards and fishing policies.
  • Challenges for Small and Medium Enterprises (SMEs): While unified standards ease trade, tighter common regulations might pose challenges for Indian SMEs that lack capital and technical expertise, requiring enhanced support from government schemes. Eg: To stay competitive, SMEs must leverage initiatives like the RoDTEP and Production-Linked Incentive (PLI)schemes to upgrade their export capabilities.

Why does the renewed U.K.-EU cooperation matter for India’s global diplomacy?

  • Enhanced Multilateral Coordination: A more aligned U.K.-EU foreign policy enables India to strengthen multilateral ties and gain cohesive support on global platforms like the United Nations, G-20, and WTO. Eg: India can push its agenda more effectively in climate finance and digital infrastructure reforms with a united Western bloc.
  • Boost to Defence and Security Partnerships: Coordinated defence policies between the U.K. and EU deepen India’s strategic collaborations in defence modernization, technology transfer, and Indo-Pacific security. Eg: Landmark defence deals with Germany and the U.K. on joint development and technology transfer gain momentum through U.K.-EU alignment.
  • Stronger Collective Response to Shared Geopolitical Challenges: The reset facilitates trilateral or multilateral engagements addressing shared concerns like China’s assertiveness in the Indo-Pacific region. Eg: India’s partnerships with the U.K., France, and Germany could lead to coordinated strategies to ensure regional stability.

What opportunities does the U.K.-EU alignment offer for Indian migration and talent mobility?

  • Improved Mobility for Students and Professionals: The renewed U.K.-EU cooperation on border checks and migration policies could partially restore the movement of Indian students and professionals across both regions. Eg: In 2024, the U.K. issued over 110,000 student visas to Indian nationals, indicating strong educational ties likely to expand.
  • Creation of Semi-Integrated Talent Corridors: The alignment may enable semi-integrated talent corridors that facilitate easier access to job markets in the U.K. and EU for skilled Indian workers. Eg: Indian professionals may benefit from more streamlined work permits and mobility agreements within the new U.K.-EU framework.
  • Strengthening Migration Pacts with Key EU Countries: India’s existing migration agreements with countries like Germany, France, and Portugal could be embedded within the broader U.K.-EU framework, enhancing their effectiveness. Eg: This could lead to expanded opportunities for Indian workers under more coordinated and stable migration policies.

How should India respond to maximise gains from this U.K.-EU reset?

  • Accelerate Reforms and Modernize Export InfrastructureIndia needs to upgrade its export ecosystem by adopting unified standards, improving logistics, and strengthening support schemes like RoDTEP and PLI to enhance competitiveness and meet new regulatory demands. Eg: Indian exporters in sectors like pharmaceuticals and seafood can reduce costs and clearances by aligning with the harmonized U.K.-EU framework.
  • Assert Strategic Engagement in Global Governance and Diplomacy: India should deepen its diplomatic ties with the U.K., EU, and key European partners to leverage coordinated foreign policy and defence collaborations, boosting its influence in forums like the UN, G20, and WTO. Eg: India’s strengthened partnerships on climate finance and Indo-Pacific security will enhance its global leadership role.

Way forward: 

  • Strengthen Export Competitiveness: Invest in upgrading export infrastructure, enhance quality standards, and expand government incentive schemes like RoDTEP and PLI to help Indian exporters meet unified U.K.-EU regulations and remain competitive globally.
  • Deepen Strategic and Diplomatic Engagement: Proactively engage with the U.K., EU, and key European nations to build stronger defence, trade, and migrationpartnerships, leveraging the reset to boost India’s global influence and economic opportunities.

Mains PYQ:

[UPSC 2023] The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.’ What is your opinion about this statement? Give reasons and examples to support your answer.

Linkage: In this article talks about the renewed ties between the UK and the EU — called a “Eurocentric reset” — could open new doors for India. A more united UK-EU foreign policy, especially in areas like defence and the Indo-Pacific, gives India a chance to work more closely with the EU on global matters. This also fits well with the growing strategic partnership between the US and Europe, which benefits India’s position in international affairs.

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Nuclear Energy

Should India amend its nuclear energy laws?

Why in the News?

India is thinking about changing the Civil Liability for Nuclear Damages Act, 2010, and the Atomic Energy Act, 1962. These changes would let private companies build and run nuclear power plants.

Why is there a proposal to amend India’s nuclear energy laws?

  • To Attract Private and Foreign Participation: Current laws like the Civil Liability for Nuclear Damage Act (CLNDA), 2010, deter foreign companies due to strict liability provisions. Amending them would enable global firms like Westinghouse (U.S.) and Électricité de France (EDF) to invest and supply nuclear technology.
  • To Meet India’s Clean Energy Targets: India aims to scale up nuclear capacity from 8 GW to 100 GW by 2047 as part of its low-carbon energy transition. Legal reforms are essential to unlock the necessary investments and partnerships to achieve this scale.

What are the concerns about foreign investment and liability?

  • Foreign Companies Fear Being Blamed After Accidents: They worry they’ll be held legally responsible if something goes wrong, which could cost them a lot of money. Eg: U.S. company Westinghouse and French company Areva stayed away from India’s nuclear sector due to strict liability laws.
  • Indian Law Puts All Blame on the Operator: India’s current law makes the plant operator fully responsible, even if the equipment from foreign suppliers fails. Eg: If a part made by a foreign company causes a problem, only NPCIL (Indian operator) is blamed and has to pay.
  • Old Accidents Still Raise Worries: Events like the Bhopal Gas Tragedy make people cautious about giving foreign companies a free pass on liability. Eg: In 2012, the NDA opposed changes in law that would reduce foreign companies’ responsibility, citing past disasters.

How will the amendments help achieve 100 GW capacity?

  • Enabling Foreign Participation: Amendments will remove liability-related hurdles, allowing global firms to invest and supply technology. Eg: Westinghouse (U.S.) and EDF (France) may enter Indian projects if liability norms align with international standards.
  • Boosting Domestic-Private Sector Involvement: Changes in laws like the Atomic Energy Act could allow Indian private companies to build and operate reactors. Eg: Companies like L&T and BHEL may contribute to infrastructure and component manufacturing at scale.
  • Attracting Investment in Advanced Reactors (SMRs): Legal clarity could attract funds and partnerships in Small Modular Reactors, helping scale capacity rapidly. Eg: New-age firms working on SMRs may partner with India if assured of returns and limited liability.

What are Small Modular Reactors (SMRs)? 

  • Small Modular Reactors (SMRs) are compact nuclear power plants that produce up to 300 MW of electricity and are built in factories for easy transport and quicker installation.
  • They use advanced, safer designs with features like passive cooling and are ideal for remote areas, industrial use, and integration with renewable energy sources.

What challenges exist in small modular reactor (SMR) technology transfer?

  • Profit-Driven Technology Sharing: Private foreign firms transfer technology only if it’s commercially viable, not for strategic or public interest reasons. Eg: U.S. companies will share SMR tech only if returns outweigh security or IP risks.
  • Restrictions by National Governments: Export controls and national security concerns limit what tech can be transferred internationally. Eg: The U.S. government regulates tech transfers; past transfers to China (like AP1000) led to cloning and IP misuse.
  • Partial Transfers and Proprietary Control: Even friendly countries often retain core tech and allow only partial local production. Eg: Russia’s Rosatom allowed India to build sub-components of VVER reactors but kept control over critical hot sections.

What is the Convention on Supplementary Compensation (CSC)? 

  • The Convention on Supplementary Compensation (CSC) is an international treaty that establishes a global fund to provide prompt compensation to victims of nuclear accidents.
  • It assigns primary liability to nuclear plant operators while limiting supplier liability, ensuring faster financial support and shared responsibility among participating countries.

Why is the Convention on Supplementary Compensation (CSC) important for nuclear compensation?

  • Ensures Quick Compensation Without Legal Delays: CSC focuses on giving fast financial help to victims of nuclear accidents without long court cases. Eg: After a nuclear incident, funds can be released immediately to affected people, unlike long litigation seen in Bhopal.
  • Fixes Responsibility on the Operator Only: CSC channels all liability to the nuclear plant operator, protecting suppliers unless there’s proven misconduct. Eg: If NPCIL runs the plant, it bears full responsibility, not companies like Westinghouse or Rosatom.
  • Creates an International Compensation Fund: It sets up a multi-tiered fund (including global contributions) to support countries during large-scale accidents. Eg: A country can access a global pool of money through CSC if the cost of a disaster exceeds national capacity.

Way forward: 

  • Strengthen Legal Framework to Balance Liability and Investment: Amend India’s nuclear laws to align liability rules with international standards like the CSC, ensuring fair responsibility for operators while providing enough protection to attract foreign and private investments.
  • Promote Technology Transfer and Domestic Capacity Building: Create transparent policies and incentives that encourage foreign companies to share advanced nuclear technologies such as Small Modular Reactors (SMRs) with Indian firms, while simultaneously building India’s own manufacturing and operational capabilities to achieve energy targets sustainably.

Mains PYQ:

[UPSC 2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.

Linkage: The article  indicate that discussions are ongoing in India to amend its nuclear liability framework (specifically, the Civil Liability for Nuclear Damages Act (CLNDA), 2010, and the Atomic Energy Act (AEA), 1962). The primary reason for these proposed amendments is to allow private companies to build and operate nuclear energy-generation facilities and to expand India’s nuclear energy capacity from 8 GW to 100 GW by 2047, aligning with the country’s clean energy goals.

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Renewable Energy – Wind, Tidal, Geothermal, etc.

Global Energy Investment Report, 2025

Why in the News?

China will lead global energy investments in 2025, making up over a quarter of total spending, says the International Energy Agency’s (IEA) 10th edition Global Energy Investment Report, 2025.

Back2Basics: International Energy Agency (IEA)

  • Establishment: The IEA was formed in 1974 under the Organization for Economic Cooperation and Development (OECD) in response to the 1973 oil crisis, with headquarters in Paris, France.
  • Membership: It has 31 member countries (e.g., US, UK, France, Japan) and 11 association countries like India, China, and Brazil.
  • India’s Role: India joined as an Association Country in 2017, gaining access to data-sharing, policy support, and technical cooperation.
  • Expanded Mission: The IEA now supports energy security, clean energy transitions, emissions tracking, and policy development.
  • Global Influence: Its major reports—World Energy Outlook, Net Zero by 2050, and Energy Technology Perspectives—guide governments and investors worldwide.

About the Global Energy Investment Report:

  • Origin and Purpose: Officially titled World Energy Investment Report, is the IEA’s flagship annual publication.
  • Published since 2016: To assess investment flows across the global energy system.
  • Scope of Coverage: It tracks investments in fossil fuels, renewables, electricity supply, critical minerals, energy efficiency, R&D, and innovation financing.
  • Strategic Value: The report helps determine if current investments support climate goals and universal energy access.

Global Energy Investment Report, 2025

Key Highlights from the 2025 Report:

  • China’s Role: China will account for over 25% of global energy investment, with over $625 billion in clean energy, though it also approved 100 GW of new coal plants in 2024.
  • Global Trends: Clean energy investment will hit $2.2 trillion, over twice the amount spent on fossil fuels, yet still falls short of COP28 targets.
  • Africa’s Investment Gap: Africa’s fossil fuel investment dropped from $125 billion to $54 billion, and it still receives only 2% of global clean energy funds, mainly due to debt burdens.
  • India’s Position: India’s renewables investment rose from $13 billion (2015) to $37 billion (2025), while fossil fuel investment also increased. However, grid and storage spending declined to $25 billion.
  • Financing Barriers: India’s high cost of capital—80% above advanced economies—limits clean energy growth. The “Baku to Belem Roadmap” seeks to mobilize $1.3 trillion by 2035 for such regions.
  • Global Mismatch: While $1 trillion is spent annually on power generation, only $400 billion goes to grid infrastructure, affecting distribution capacity.
[UPSC 2022] Consider the following statements:

1. The Climate Group” is an international non-profit organisation that drives climate action by building large networks and runs them.

2. The International Energy Agency in partnership with The Climate Group launched a global initiative “EP100”.

3. EP100 brings together leading companies committed to driving innovation in energy efficiency and increasing competitiveness while delivering on emission reduction goals.

4.Some Indian companies are members of EP100.

5. The International Energy Agency is the Secretariat to the “Under2 Coalition”.

Which of the statements given above are correct?

Options: (a) 1,2,4 and 5 (b) 1,3 and 4 only* (c) 2,3 and 5 only (d) 1,2,3,4 and 5

 

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[pib] NAMASTE Scheme

Why in the News?

The Ministry of Social Justice launched the Waste Picker Enumeration App under the National Action for Mechanized Sanitation Ecosystem (NAMASTE) Scheme to support and formalize India’s informal sanitation workforce.

About NAMASTE Scheme:

  • Launch: It is a Central Sector Scheme launched in 2022.
  • Implementing Agencies: It is jointly implemented by the Ministry of Housing and Urban Affairs (MoHUA) and the Ministry of Social Justice and Empowerment (MoSJE), with the National Safai Karamcharis Finance and Development Corporation (NSKFDC) as the executing body.
  • Initial Focus and Expansion: Initially aimed at sewer and septic tank workers (SSWs), the scheme was expanded in June 2024 to include waste pickers.
  • Core Objective: To promote safety, dignity, skill development, and social inclusion for sanitation workers.

Key Features of the Scheme:

  • Identification: The scheme aims to enumerate SSWs and waste pickers to formally integrate them into government support systems.
  • Skill Training: It provides occupational training to ensure sanitation work is safe and professional.
  • Protective Gear: PPE kits are distributed to reduce workers’ health risks.
  • Health Coverage: Workers and their families receive Ayushman Bharat (PM-JAY) health insurance.
  • Safety Equipment: Sanitation Response Units (SRUs) are supported with modern safety tools.
  • Livelihood Support:
    • Encourages mechanized sanitation work.
    • Offers capital and interest subsidies for buying equipment.
  • Collective Formation: Supports sanitation workers in forming Self-Help Groups (SHGs) and sanitation enterprises.
  • Awareness Campaigns: ULBs and NSKFDC conduct campaigns promoting dignified and safe sanitation practices.

Key Achievements (as of May 29, 2025):

  • Enumerated Workers: Over 80,000 sewer and septic tank workers have been identified and validated.
  • Health Coverage: 26,447 health cards issued under PM-JAY.
  • PPE Distribution: 45,781 PPE kits delivered to frontline workers.
  • Safety Kits: 354 Emergency Response Safety Kits provided to sanitation teams.
  • Waste Picker Integration: NAMASTE now aims to profile 2.5 lakh waste pickers, offering them ID cards, insurance, skilling, and livelihood assistance.
[UPSC 2016] Rashtriya Garima Abhiyaan’ is a national campaign to:

Options: (a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood (b) release the sex workers from their practice and provide them with alternative sources of livelihood (c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers* (d) release the bonded labourers from their bondage and rehabilitate them

 

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Wildlife Conservation Efforts

Greater Flamingo Sanctuary at Dhanushkodi

Why in the News?

The Tamil Nadu government has officially notified a Greater Flamingo Sanctuary at Dhanushkodi in Ramanathapuram district.

Greater Flamingo Sanctuary at Dhanushkodi

What is a Bird Sanctuary?

  • India’s bird sanctuaries are established under the Wildlife (Protection) Act, 1972 (WLPA).
  • Section 18 of the WLPA empowers State governments to declare wildlife or bird sanctuaries based on ecological or zoological importance.
  • The law prohibits hunting of protected birds and prescribes penalties for violations, including fines and imprisonment.

About Greater Flamingo (Phoenicopterus roseus):

  • Overview: It is the largest and most widespread flamingo species, found across Africa, southern Europe, and South and Southeast Asia, including India and Pakistan.
  • Presence in India: India hosts both Greater and Lesser Flamingos. Greater Flamingo is the state bird of Gujarat.
  • Behaviour and Diet: These birds form monogamous pairs and get their pink coloration from a diet rich in brine shrimp and algae. They are omnivores, feeding on invertebrates, small fish, algae, and decaying plant matter.
  • Habitat: They prefer saltwater lagoons, mudflats, and saline lakes, and are important indicators of wetland health.
  • Migration Pattern: Every year, 100,000–150,000 flamingos migrate from Gujarat to Mumbai, typically arriving in November and settling in the Thane Creek Flamingo Sanctuary.
  • Migration Triggers: Their movement depends on food availability, water levels, and colony crowding.
  • Conservation Status:
    • IUCN Red List: Least Concern (LC) (species is widespread and abundant)
    • Wildlife Protection Act, 1972: Schedule II (protected but with lesser penalties than Schedule I)
    • CMS (Convention on Migratory Species): Appendix II (species need international cooperation for conservation)
    • CITES (Convention on International Trade in Endangered Species): Appendix II (trade is regulated to avoid overexploitation)

About the Flamingo Sanctuary at Dhanushkodi:

  • Location: The sanctuary lies in the Gulf of Mannar Biosphere Reserve, spanning 524.7 hectares in Rameshwaram taluk.
  • Habitat: It includes mangroves, sand dunes, mudflats, and marshes, supporting migratory birds, marine life, and sea turtles.
  • Flyway Connection: The site falls along the Central Asian Flyway, a key route for wetland migratory birds.
  • Bird Census: The 2023–24 wetland bird survey recorded over 10,700 birds, including herons, egrets, sandpipers, and both flamingo species.
  • Ecological Importance: Mangrove species like Avicennia and Rhizophora dominate the area, offering breeding grounds and coastal protection.
[UPSC 2015] With reference to an organization known as ‘BirdLife International’, which of the following statements is/are correct?

(1) It is a Global Partnership of Conservation Organizations. (2) The concept of ‘biodiversity hotspots’ originated from this organization. (3) It identifies the sites known/referred to as ‘Important Bird and Biodiversity Areas’.

Select the correct answer using the code given below:

Options: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only * (d) 1, 2 and 3

 

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Wildlife Conservation Efforts

[pib] EnviStats India Report, 2025

Why in the News?

The Ministry of Statistics and Programme Implementation (MoSPI) has released the 8th edition of EnviStats India: Environment Statistics Report.

About EnviStats India Report:

  • Launch: It is an annual report released by the Ministry of Statistics and Programme Implementation (MoSPI), first launched in 2018.
  • Global Framework: It follows the UN’s Framework for the Development of Environment Statistics (FDES) 2013.
  • Data Compilation: The report consolidates environmental data from multiple ministries and departments of the Indian government.
  • Policymaking Support: It helps in evidence-based policymaking by identifying environmental challenges, resource needs, and trends.

Key Highlights of EnviStats India, 2025:

  • Energy and Fisheries:
    • Thermal power generation rose from 7.92 lakh GWh (2013–14) to 13.26 lakh GWh (2023–24).
    • Renewable energy generation increased from 65,520 GWh to 2.26 lakh GWh over the same period.
    • Inland fish production jumped from 61.36 lakh tonnes to 139.07 lakh tonnes.
    • Marine fish production grew from 34.43 lakh tonnes to 44.95 lakh tonnes.
  • Climate and Weather Trends:
    • Annual mean temperature increased from 25.05°C (2001) to 25.74°C (2024).
    • Minimum temperature rose from 19.32°C to 20.24°C; maximum temperature from 30.78°C to 31.25°C.
    • Rainfall patterns showed year-to-year variability, but no clear long-term trend.
  • Biodiversity Statistics:
    • India’s faunal diversity includes 1,04,561 species, contributing to the global count of 16,73,627 species.
    • It includes 20,613 marine, 9,436 freshwater, and 22,404 soil species.
    • Mangrove and estuarine ecosystems show high biodiversity richness.
  • Expenditure Trends:
    • The Environment Sustainability sector had the highest allocation: ₹2,433.24 crore in 2021–22.
    • Spending on Conservation of Natural Resources showed a rising trend.
    • Agro-forestry received the lowest funding among the three major environmental sectors.
[UPSC 2020] Consider the following statements:

1. 36% of India’s districts are classified as “overexploited” or “critical” by the Central Ground Water Authority (CGWA).

2. CGWA was’ formed under the Environment (Protection) Act.

3. India has the largest area under groundwater irrigation in the world

Which of the statements given above is/are correct?

Options: (a) 1 only (b) 2 and 3 only * (c) 2 only (d) 1 and 3 only

 

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Tiger Conservation Efforts – Project Tiger, etc.

State of Tigers Prey in India

Why in the News?

For the first time, India has conducted a detailed assessment of ungulate species (mammals with hoofs on their foot, like deer, pigs, antelopes, and bison), which are vital prey for tigers and important for forest ecosystems.

About Status of Tiger Prey in India:

  • The report titled “Status of Ungulates in Tiger Habitats of India” was released by the Wildlife Institute of India (WII) and the National Tiger Conservation Authority (NTCA), using data from the 2022 All-India Tiger Estimation.
  • This is the first national-level assessment of ungulates, the hoofed mammals like chital, sambar, gaur, wild pig, nilgai, which form the core prey base of tigers.
  • Ungulates are essential not only for tiger survival but also for maintaining healthy forest ecosystems, supporting biodiversity, and promoting soil and vegetation health.
  • The study stresses that tiger numbers alone are not enough; prey density and habitat quality must also be monitored to assess ecosystem health.
  • It establishes that 30 ungulates per sq km are needed to support 4 tigers per 100 sq km, but growth is constrained by territoriality, interspecies competition, and habitat fragmentation.

Key Highlights:

  • Prey Decline in East-Central India: Significant decline in Odisha, Jharkhand, and Chhattisgarh due to habitat loss, deforestation, urbanization, mining, subsistence hunting, civil unrest, and Left Wing Extremism.
  • Thriving Regions: Healthier prey populations in the Shivalik-Gangetic Plains (Uttarakhand, UP, Bihar), Madhya Pradesh, Maharashtra, the Western Ghats, and Northeast India.
  • Species Trends:
    • Chital is the most widespread and adaptable species.
    • Sambar and gaur remain stable in central and southern forests.
    • Hog deer and barasingha show sharp decline due to wetland degradation and habitat isolation.
  • Human-Wildlife Conflict:
    • In low-prey areas like Tadoba and Ratapani, tigers prey on livestock, increasing conflict.
    • Wild pigs and nilgai damage crops, leading to retaliatory killings and local resentment.
  • Conservation Measures:
    • On-site prey breeding in predator-proof enclosures
    • Forest restoration and better habitat connectivity
    • Focused protection of sanctuaries and buffer zones
    • Reducing habitat fragmentation caused by roads, railways, and power lines

About Tiger Conservation in India

  • Declared National Animal of India in 1972 by the Indian Board for Wildlife (IBWL).
  • Largest population in India; also found in Bangladesh, Nepal, Bhutan, China, and Myanmar. India harbours 75% of the world’s wild tigers.
  • Occupies habitats such as high mountains, mangrove swamps, grasslands, deciduous forests, evergreen, and shola forests.
  • Ecological Significance:
    • Flagship species: Essential for conservation efforts.
    • Umbrella species: Protecting tigers helps conserve other species.
  • Key driver of ecotourism and related industries.
  • Cultural & Spiritual Significance: Symbolizes power and strength.
  • Protection Status:
    • Indian Wildlife (Protection) Act, 1972: Schedule I.
    • IUCN Red List: Endangered.
    • CITES: Listed in Appendix I.
  • Project Tiger is a wildlife conservation initiative in India that was launched in 1973.
  • Tigers are also flagship species listed among the 7 big cats under the International Big Cat Alliance (IBCA).

 

[UPSC 2001] A pesticide which is a chlorinated hydrocarbon is sprayed on a food crop. The food chain is: Food crop – Rat -Snake – Hawk.

In this food chain, the highest concentration of the pesticide would accumulate in which one of the following?

Options: (a) Food crop (b) Rat (c) Snake (d) Hawk*

 

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