💥UPSC 2026, 2027, 2028 UAP Mentorship (March Batch) + Access XFactor Notes & Microthemes PDF
Talk to mentor

Civilsdaily

Login

Archives: News

  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    The ongoing oil price tensions

    Explained | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    Why in the News?

    In May 2025, Saudi Arabia led OPEC+ to reverse previous production cuts, sparking a full-fledged oil price war—a new form of global conflict fought aggressively over barrels of crude oil rather than through military aggression.

    What is OPEC+? 

    OPEC+ is a group consisting of the Organization of the Petroleum Exporting Countries (OPEC) plus several non-OPEC oil-producing countries that coordinate their oil production policies to manage global oil supply and influence prices.

    Key points about OPEC+:

    • OPEC: A cartel of 13 major oil-exporting countries, including Saudi Arabia, Iraq, Iran, UAE, Nigeria, and others.
    • The “+”: Includes major non-OPEC producers like Russia, Mexico, Kazakhstan, Oman, and others.

    What led OPEC+ to increase oil production in May 2025?

    • Ineffectiveness of previous cuts: Despite voluntary output cuts of 2.2 million barrels per day (bpd) by eight members in 2023 (including a collective cut of 5 million bpd earlier), oil prices kept declining.
    • Oversupply & competition: New producers (e.g., Brazil, Guyana, shale oil players) increased their market share, reducing OPEC+’s control.
    • Saudi frustration: Overproduction by OPEC+ members like Kazakhstan, Iraq, UAE, and Nigeria undermined collective output discipline.
    • Market flooding strategy: To discipline overproducers and regain market share, Saudi Arabia led a reversal in strategy, increasing output (411,000 bpd) starting June 2025.
    • Preemptive move: Anticipating return of major sanctioned producers (Iran, Venezuela, Russia), OPEC+ may be frontloading production before supply increases further.

    Why is Saudi Arabia called a “swing producer”?

    • Large spare production capacity: It can increase or decrease output swiftly to influence global oil prices.
    • Stabilizing role: Prefers stable and moderately high prices to ensure consistent oil revenue.
    • Historical precedence: Has previously launched price wars (1985–86, 1998, 2014–16, 2020) to discipline the market and punish overproducers.
    • Current context: Took the largest voluntary cut (3 million bpd) in 2024, but shifted to increasing output as a strategic move to reassert influence.

    Who are the key oil producers under U.S. sanctions?

    • Russia: Sanctioned due to the Ukraine conflict and other geopolitical reasons.  
    • Iran: Sanctioned for its nuclear program and regional activities.  
    • Venezuela: Sanctioned for political repression and economic mismanagement.

    How does the oil price war affect India’s economy?

    • Lower Import Bill and Fiscal Savings: Falling oil prices reduce India’s import costs significantly. Eg: In 2024–25, India spent $137 billion on crude imports. A $1 drop in global oil prices can save India roughly $1.5 billion annually.
    • Reduced Export Earnings from Petroleum Products: India exports refined petroleum products, a top export item. Lower crude prices reduce global demand and margins for these exports. Eg: Refinery margins decline, affecting companies like Reliance Industries and Indian Oil Corporation, and reducing foreign exchange earnings.
    • Negative Impact on Gulf Economies and Remittances: Gulf countries face revenue drops, leading to reduced infrastructure spending and job losses for Indian expatriates. Eg: Over 9 million Indians work in the Gulf, sending home more than $50 billion in remittances annually. Job losses or salary cuts can hurt India’s balance of payments.
    • Lower Tax Revenues from Oil Sector: As oil prices drop, the government earns less in excise duties, royalties, and other taxes from oil and gas sales. Eg: The petroleum sector contributes significantly to India’s tax base—lower prices reduce collections, affecting fiscal planning and public spending.
    • Strained Bilateral Economic Ties with Oil Exporters: Economic decline in oil-exporting countries (like Saudi Arabia, UAE, and Nigeria) affects India’s project exports, bilateral trade, and inbound investments. Eg: Indian companies working on infrastructure projects in Gulf countries may face payment delays or cancellations due to budgetary constraints in host nations.

    Way forward: 

    • Diversify Energy Sources and Boost Renewables: Reduce dependency on crude oil imports by accelerating adoption of renewable energy, energy efficiency, and alternative fuels like hydrogen and biofuels to enhance energy security.
    • Strengthen Economic Resilience and Diplomatic Engagement: Build strategic petroleum reserves, improve fiscal buffers, and deepen diplomatic ties with diverse energy suppliers to better manage supply shocks and geopolitical risks.

    Mains PYQ:

    [UPSC 2013] It is said the India has substantial reserves of shale oil and gas, which can feed the needs of country for quarter century. However, tapping of the resources doesn’t appear to be high on the agenda. Discuss critically the availability and issues involved.

    Linkage: It focuses on the potential of unconventional sources like shale oil/gas within India, which could impact its energy security and reduce dependence on imports influenced by global price tensions.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Citizenship and Related Issues

    Overseas Citizenship of India (OCI)

    Prelims Only | Polity | Mains Paper 2: Indian Diaspora

    Why in the News?

    The Overseas Citizenship of India (OCI) status of a notable British-Indian academic has been cancelled due to involvement in anti-India activities.

    About Overseas Citizenship of India (OCI):

    • Launch: Introduced in August 2005 to give Persons of Indian Origin (PIOs) a long-term connection to India.
    • Eligibility: Open to those who were citizens of India on/after January 26, 1950, or eligible for Indian citizenship on that date.
    • Nature: OCI is not full citizenship but offers lifelong visa and residency benefits.
    • Benefits: Includes a multiple-entry, lifelong visa and exemption from police registration.
    • Administered by: Ministry of Home Affairs (MHA).
    • Global Numbers (2023): Over 45 lakh OCI holders from 129 countries — top sources include the USA (16.8 lakh), UK (9.34 lakh), Australia (4.94 lakh), and Canada (4.18 lakh).

    Who are the Persons of Indian Origin (PIOs)?

    • The PIO category was abolished in 2015 and merged with the OCI category. However, existing PIO cards are valid till December 31, 2023.
    • PIO referred to a:
      • Foreign citizen (except a national of Pakistan, Afghanistan Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal) who at any time held an Indian passport, or
      • Who or either of their parents/ grandparents/great grandparents was born and permanently resided in India as defined in Government of India Act, 1935, or
      • Who is a spouse of a citizen of India or a PIO.

    Rules, Amendments & Privileges:

    • 2021 Rule Change: Special permission required for visiting restricted areas, conducting research, journalism, or religious work.
    • FEMA Status: Treated as foreign nationals under the Foreign Exchange Management Act (2003).
    • Earlier Privileges:
      • 2005: Life-long visa, no FRRO (Foreigners Registration Office) registration
      • 2007: Parity with NRIs for adoption, domestic airfare
      • 2009: Parity for monument entry and access to regulated professions

    Limitations and Ineligibility:

    • Not Eligible:
      • Individuals with parents/grandparents from Pakistan or Bangladesh
      • Foreign military personnel, active or retired
    • Spouse Clause: Foreign spouse eligible if legally married for at least two years.
    • No Political Rights: OCI holders cannot vote, contest elections, hold constitutional posts (President, Vice President, or Supreme Court/High Court Judge), or work in Indian government services.
    [UPSC 2021] Consider the following statements:

    1.There is only one citizenship and one domicile.

    2.A citizen by birth only can become the Head of State.

    3.A foreigner, once granted citizenship, cannot be deprived of it under any circumstances.

    Which of the statements given above is/are correct?

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

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Hunger and Nutrition Issues – GHI, GNI, etc.

    Global Report on Food Crises, 2025

    IOCR | Indian Society | Mains Paper 1: Poverty & Development Issues

    Why in the News?

    The Global Report on Food Crises (GRFC) 2025 has revealed that more than 295 million people in 53 countries and territories faced acute hunger in 2024.

    About the Global Report on Food Crises (GRFC):

    • Publication: The GRFC has been published every year since 2016 by the Global Network Against Food Crises (GNAFC).
    • Supporting Organisations: It is backed by the Food Security Information Network (FSIN) and includes input from UN agencies, the EU, and various NGOs.
    • Purpose: Provides a consensus-based analysis of acute food insecurity and malnutrition worldwide.

    Key Highlights from GRFC 2025:

    • Scope: The 2025 report covers 65 countries, with complete data for 53. India was not included in the analysis.
    • Global Hunger Level: In 2024, 295 million people faced acute food insecurity, up 13.7 million from 2023 — the sixth consecutive year of rising hunger.
    • Severity: 23% of the analysed population experienced food insecurity, remaining above 20% for five years.
    • Catastrophic Hunger: A record 1.9 million people were in Integrated Food Security Phase Classification (IPC) Phase 5—catastrophic levels of hunger.

    [UPSC 2023] Which of the following countries has been suffering from decades of civil strife and food shortages and was in the news in the recent past for its very severe famine?

    Options: (a) Angola (b) Costa Rica (c) Ecuador (d) Somalia *

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Wildlife Conservation Efforts

    [pib] What is Operation Olivia?

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    As of February 2025, the Indian Coast Guard (ICG) protected a record 6.98 lakh Olive Ridley turtles during their mass nesting at the Rushikulya river mouth in Odisha.

    About Operation Olivia:

    • Launch: Operation Olivia is an annual conservation mission by the Indian Coast Guard, started in the early 1980s.
    • Main Objective: It aims to protect Olive Ridley turtles during their nesting season, from November to May.
    • Primary Locations: The operation focuses on Odisha’s coast, especially Gahirmatha Beach, Devi River mouth, and Rushikulya River mouth.
    • Turtle Nesting Scale: Over 8 lakh turtles arrive annually at these sites to nest.
    • Surveillance Efforts: The Coast Guard has conducted more than 5,387 surface patrols and 1,768 aerial missions.
    • Community Engagement: Fishermen are encouraged to use Turtle Excluder Devices (TEDs) that allow turtles to escape fishing nets.

    About Olive Ridley Turtles:

    • Appearance: Named for their olive-green shell, or carapace.
    • Diet: They are Omnivores, though feeding mainly on jellyfish, crustaceans, and molluscs.
    • Nesting Behaviour: Known for Arribada, a phenomenon where thousands of females come ashore simultaneously to lay eggs.
    • Habitat Range: Found in warm waters of the Pacific, Atlantic, and Indian Oceans.
    • Major Nesting Sites in India:
      • Gahirmatha Marine Sanctuary, Odisha (largest site)
      • Devi River mouth (discovered in 1981)
      • Rushikulya River mouth (discovered in 1994)
    • Protection Status:
      • IUCN Red List: Listed as Vulnerable.
      • CITES: Included in Appendix I, banning international trade.
      • Wildlife Protection Act, 1972: Listed under Schedule I, offering the highest legal protection in India.
    [UPSC 2002] The sea coast of which one of the following states has become famous as a nesting place for the giant Olive Ridley turtles from South America?

    Options: (a) Goa (b) Gujarat (c) Odisha* (d) Tamil Nadu

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • International Space Agencies – Missions and Discoveries

    NASA’s GRAIL Mission

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Scientists now believe the Moon’s near side looks different from its far side due to its internal structure and volcanic past, revealed by NASA’s Gravity Recovery and Interior Laboratory (GRAIL) mission.

    About the GRAIL Mission:

    • Launch: NASA launched the GRAIL mission in 2011 to study the moon’s internal structure.
    • Spacecraft Used: It used two spacecraft, Ebb and Flow, flying in tandem to detect gravity variations.
    • Objectives: The mission measured tiny changes in distance between the two spacecraft caused by differences in the moon’s gravitational field.
    • Scientific Outcome: The data revealed important details about the moon’s crust thickness, interior composition, and subsurface features.

    Key Findings: Reasons for the Moon’s Asymmetry

    • Tidal Deformation: The nearside bends more than the farside due to Earth’s gravity, a process called tidal deformation.
    • Internal Activity: The nearside is geologically warmer and more active, suggesting internal structural differences.
    • Volcanic History: Ancient volcanic activity on the nearside formed large basaltic plains, while the farside remained rugged and less active.
    • Heat Distribution: Elements like thorium and titanium accumulated on the nearside, making it 100–200°C hotter than the farside.
    • Crust Thickness: The nearside has a thinner crust, allowing magma to escape, while the farside’s thicker crust trapped heat and blocked eruptions.
    • Thermal Contrast: The thinner crust also allowed more heat-producing elements to concentrate, increasing the temperature gap between the two sides.

    Why do these findings matter?

    • Support for Lunar Missions: Insights from GRAIL help design better navigation and timing systems for future lunar operations.
    • Applications: GRAIL’s method can be applied to other moons like Enceladus and Ganymede, which may hold potential for life.
    [UPSC 2007] NASA’S Deep Impact space mission was employed to take detailed pictures of which comet nucleus?

    Options: (a)  Halley’s Comet (b) Hale-Bopp (c) Hyakutake (d) Tempel 1 *

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Parliament – Sessions, Procedures, Motions, Committees etc

    [19th May 2025] The Hindu Op-ed: What is a Presidential reference?

    op-ed snap | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    PYQ Relevance:

    [UPSC 2017] Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India.

    Linkage: NJAC Act was struck down (the Collegium system) had its detailed guidelines laid down by the Supreme Court in the Third Judges case, which itself was a Presidential reference made under Article 143. Therefore, understanding the advisory jurisdiction under Article 143 and its outcome in the Third Judges case is essential background for critically examining the NJAC judgment.

     

    Mentor’s Comment: The Supreme Court recently set time limits for Governors to decide on state bills, so they can’t delay action forever—a practice often called a “Pocket Veto.” The Court said Governors must act within one or three months, based on the case. This raised doubts about the Court’s powers under Article 142, so President Murmu asked for its advice under Article 143. 

    Today’s editorial talks about Article 143 of the Constitution, where the President has asked the Supreme Court for its opinion on the powers and responsibilities of the President and Governors. This topic is useful for GS Paper II (Indian Polity) in the UPSC Mains exam.

    _

    Let’s learn!

    Why in the News?

    President Droupadi Murmu has used Article 143 of the Constitution to ask the Supreme Court for its opinion on some important questions about the powers and duties of the President and Governors, especially related to how and when they should act on state bills.

    What are the provisions?

    • Article 143(1): The President may refer any matter to the Supreme Court for its opinion. In the first case, the Supreme Court may tender or may refuse to tender its opinion to the president.
    • Article 143(2): Allows the President to refer disputes arising from pre-Constitution agreements, including state-related matters, for the Supreme Court’s opinion. The Supreme Court must tender its opinion to the President. The Supreme Court’s opinion is advisory—not binding or precedent-setting—but carries strong persuasive value.
    • Article 145: Such references must be heard by a bench of at least five judges.

    Note: The President makes these references based on the Cabinet’s advice. 

    What is the historical context?

    The advisory jurisdiction of India’s Supreme Court under Article 143 originates from the Government of India Act, 1935, which gave the Governor-General the power to refer important legal questions to the federal court for opinion.

    What were past instances?

    • Delhi Laws Act Case (1951): Clarified the scope of delegated legislation by the legislature to the executive.
    • Kerala Education Bill (1958): Interpreted the balance between Fundamental Rights and Directive Principles, especially regarding minority education rights under Article 30.
    • Berubari Union Case (1960): Held that ceding Indian territory to another country requires a constitutional amendment under Article 368.
    • Special Courts Bill (1978): Stated that references must be specific and that the Court may decline to answer vague or political questions.
    • Third Judges Case (1998): Laid down detailed guidelines for the appointment of judges and established the collegium system.

    What is the significance of Article 143 and its colonial legacy?

    • Provides Advisory Role to the Executive: Allows the President to seek the Supreme Court’s opinion on complex legal or constitutional issues, helping the executive navigate difficult questions. Eg: President referred the question on delegated legislation in the Delhi Laws Act case (1951).
    • Ensures Constitutional Clarity: Helps resolve ambiguities or uncertainties in law, thus guiding governance and preventing conflicts. Eg: The Berubari case (1960) clarified constitutional procedures for ceding Indian territory.
    • Maintains Separation of Powers: The advisory nature avoids direct judicial interference in executive functions while still providing legal guidance. Eg: The Supreme Court may decline vague or political questions, as in the Special Courts Bill reference (1978).

    What key issues are raised in the latest Article 143 reference?

    • Judicial Review of Executive Discretion: The reference questions whether the judiciary can review the discretionary powers of the President and Governors, particularly regarding the assent to bills under Articles 200 and 201.
    • Imposition of Timelines on Constitutional Authorities: It seeks clarity on whether the Supreme Court can prescribe timelines for the President and Governors to act on bills, given that the Constitution does not specify such timeframes.
    • Concept of ‘Deemed Assent’: The reference challenges the Supreme Court’s introduction of the ‘deemed assent’ concept, questioning its compatibility with the constitutional framework.
    • Scope of Article 142 Powers:  Article 142 gives the Supreme Court power to pass orders to do “complete justice”, but it must be within constitutional bounds.  In the present reference questions whether this provision allows the Court to create new rules not found in the Constitution.
    • Justiciability of Executive Actions Pre-Legislation: The reference probes whether actions of the President and Governors concerning bills can be subjected to judicial review before the bills become law.
    • Impacts Federalism and Democratic Functioning: The Supreme Court’s opinion will influence the Centre-State power dynamics and safeguard democratic processes. Eg: The Cauvery dispute advisory opinion (1992) that reinforced limits on the Court’s advisory role to respect federalism.

    How does India’s advisory jurisdiction compare globally?

    India Canada United States
    Origin / Legacy Inherited from Government of India Act, 1935 Similar colonial legacy No advisory jurisdiction
    Nature of Opinion Non-binding but persuasive Non-binding but persuasive No advisory opinions given
    Who Can Refer President on Union Council of Ministers’ advice Federal and provincial governments Not applicable
    Judicial Approach Supreme Court may decline to give opinion Supreme Court provides opinions on request Strict separation of powers, no advisory role
    Example (Eg) Article 143 references (e.g., Berubari case) Reference re Secession of Quebec (1998) – clarified constitutional secession rules In Muskrat v. United States (1911), the Supreme Court rejected advisory jurisdiction

    Way forward: 

    • Clarify Constitutional Timelines: Amend or clarify constitutional provisions to explicitly define timelines for presidential and gubernatorial actions on bills, reducing ambiguities and potential conflicts.
    • Strengthen Centre-State Dialogue: Promote cooperative federalism through regular dialogue and dispute resolution mechanisms to prevent politicization of constitutional functions and ensure smooth governance.

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Interstate River Water Dispute

    Mahadayi Water Dispute

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    A protest has erupted in Goa after a scientific paper on water availability and diversion in the Mahadayi basin reignited its long-standing dispute with Karnataka.

    Mahadayi Water Dispute

    About the Mahadayi River:

    • Origin: The Mahadayi River (Mhadei in Goa) originates in Bhimgad, Karnataka, in the Western Ghats.
    • Length and Flow: It flows 81 km, passing through Karnataka (35 km), Goa (45 km), and Maharashtra (1 km) before reaching the Arabian Sea.
    • Basin Area: Covers 2,032 sq km—78% in Goa, 18% in Karnataka, and 4% in Maharashtra.
    • Significance: Forms the Mandovi River, essential for drinking water, agriculture, and navigation in Goa.
    • Tributaries: Kalasa Nala, Surla Nala, Haltar Nala, Poti Nala, Mahadayi Nala, Pansheer Nala, Bail Nala, Andher Nala and many more. It has a catchment area of 2032 sq.km.
    • Topography: Elevation ranges between < 0m and > 980m w.r.t Mean Sea Level, slope of the catchment varies up to 150%. Very high slope we observed in the Ghats (Braganja Ghats).
    • Waterfalls: Variations in the terrain has led to formation of various water falls such as the Doodhsagar falls,Vajra poha falls etc.
    • Ecology: Supports rich biodiversity, including the Salim Ali Bird Sanctuary.
    • Mineral Ores found: Iron, limestone, bauxite, quartz, limestone, sand, clay, lime shell, Manganese, Asbestos, Mica, Lead, Cadmium.

    Mahadayi Water Dispute:

    • Karnataka’s Project: Proposed the Kalasa-Banduri Nala to divert water to the Malaprabha basin.
    • Tribunal Setup: The Mahadayi Water Disputes Tribunal (2010) addressed disagreements.
    • 2018 Verdict:
      • Karnataka: 13.42 tmcft (1.72 from Kalasa, 2.18 from Bhandura).
      • Goa: 24 tmcft (plus 9.395 tmcft for existing use).
      • Maharashtra: 1.33 tmcft.
    • Concerns: Goa feared impacts on Mandovi navigation; the tribunal cited tidal flow ensures stability.
    • Legal Status: Both states have challenged the verdict in the Supreme Court.

    Controversy Over CSIR-NIO Report:

    • Study Findings: Claimed Karnataka’s diversions would have minimal impact on Goa’s water or estuarine navigation.
    • Institutions: Report authored by CSIR-NIO (Goa) and INCOIS (Hyderabad).
    • Recommendations: Suggested check dams and a Tillari-style agreement for shared water use and ecological balance.

    Tap to read more about Interstate Water Disputes in India.

    [UPSC 2013] Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss.

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Innovations in Biotechnology and Medical Sciences

    What is A-to-I mRNA Editing?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Chinese researchers found that A-to-I mRNA editing, once considered random, plays a key role in development, especially in the wheat pathogen Fusarium graminearum.

    About A-to-I mRNA Editing:

    • mRNA: Our cells use DNA as a guide to make proteins. First, they copy DNA into messenger RNA (mRNA).
    • A-to-I editing: This is a process where the letter adenosine (A) in mRNA is changed to inosine (I) by special enzymes called ADARs. The cell reads inosine as guanine (G), which can change the protein being made.
    • Why it matters:
      • It helps the cell make different versions of proteins without changing the DNA.
      • It can remove early stop signals, allowing full proteins to be made.
      • It helps the cell adapt to different conditions or stages of life.

    What did scientists discover in the fungus?

    • Fungal Discovery: Scientists found that the fungus edits over 26,000 mRNA sites during reproduction, not during normal growth.
    • Development Role: This editing fixes early stop signals in key genes, helping the fungus develop and reproduce properly.
    • Stress Adaptation: Some genes work better unedited under stress, showing the fungus edits only when needed for survival.

    Does this happen in humans?

    Yes, A-to-I editing is common in humans:

    • In the brain: It helps with brain growth, memory, and learning.
    • In the immune system: It helps fight infections and control inflammation.

    Health Implications:

    • Health Risks: Faulty editing is linked to epilepsy and certain cancers.
    • Therapeutic Potential: Understanding this process can lead to new treatments and improve gene-editing technologies.
    [UPSC 2016] In the context of the developments in Bioinformatics, the term ‘transcriptome’, sometimes seen in the news, refers to:

    Options: (a) a range of enzymes used in genome editing (b) the full range of mRNA molecules expressed by an organism * (c) the description of the mechanism of gene expression (d) a mechanism of genetic mutations taking place in cells

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • RBI Notifications

    RBI’s Transfer of ‘Surplus’ to the Government

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    The RBI may transfer a record ₹2.5–₹3 lakh crore surplus for 2024–25 after its recent review of its Economic Capital Framework (ECF).

    About Surplus Transfer by RBI:

    • Legal Basis: Under Section 47 of the RBI Act, 1934, the RBI must transfer its net surplus from its income to the central government.
    • Tax Exemption: As per Section 48, the RBI is exempt from income tax and direct taxes.
    • Timeline: RBI has recently changed its accounting year from June-July to April-May.
    • Recent Transfers: In 2023–24, RBI transferred a record ₹2.11 lakh crore; estimates for 2024–25 range between ₹2.5 and 3 lakh crore.
    • Reserve Allocation: Some surplus may be set aside for contingency or asset development funds.
    • Policy Debate: The government often seeks higher transfers, while the RBI stresses on maintaining financial stability and autonomy.
    • Past Disagreements: Tensions have occurred but are usually resolved through mutual agreement.

    How does the RBI generate its surplus?

    • Foreign Investments: RBI earns returns from investing in foreign government bonds, treasury bills, and deposits with other central banks.
    • Domestic Bonds: It receives interest on Indian government securities (G-secs) held in its portfolio.
    • Bank Lending: Income is earned by lending short-term funds to commercial banks via repo operations.
    • Commission Services: The RBI charges commissions for managing borrowings and public debt for the central and state governments.
    • Main Expenditure: Costs include printing currency, staff salaries and pensions, bank commissions, and dealer fees.
    • Net Surplus: The surplus is what remains after expenses, provisions, and reserves are accounted for.

    Back2Basics: Economic Capital Framework (ECF)

    • Purpose: The ECF guides how much capital RBI must retain and how much surplus can be transferred.
    • Y.H. Malegam Committee (2013): It reviewed the adequacy of reserves and surplus distribution policy in 2013, recommended a higher transfer to the government.
    • Introduction: Finalised in 2019, based on a committee led by Bimal Jalan.
    • Goal: Seeks to balance government funding needs with RBI’s financial resilience.
    • Reserve Components: Defines key buffers like the Contingency Risk Buffer (CRB), Revaluation Reserves, and Asset Development Fund.
    • Minimum CRB: Requires at least 5.5% of RBI’s balance sheet to be held as contingency reserve.
    • Transfer Stability: Allows for more consistent surplus transfers when RBI’s earnings are strong.

     

    [UPSC 2021] In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following:

    1.Lending to trade and industry bodies when they fail to borrow from other sources.

    2.Providing liquidity to the banks having a temporary crisis.

    3.Lending to governments to finance budgetary deficits.

    Select the correct answer using the code given below:

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

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

  • Monsoon Updates

    Seasonal Impact of Monsoons on Wind Power

    Prelims Only | Geography | Mains Paper 1: Important Geophysical Phenomena

    Why in the News?

    The onset of cool, moisture-laden monsoon winds offers not just relief but also a significant opportunity for wind energy generation.

    About the Indian Monsoon:

    • Origin: The word “monsoon” comes from Arabic ‘mausin’ or Malayan ‘monsin,’ meaning “season”.
    • Seasonal Wind Shift: Monsoons are seasonal winds that reverse direction with changing seasons.
    • Types:
      1. Southwest Monsoon: Blows from sea to land, bringing rainfall across most of India.
      2. Northeast Monsoon: Blows from land to sea, bringing rain mainly to southeast India.
    • Role of Tibet: The Tibetan Plateau heats up in summer, creating low pressure that draws in moist winds.
    • Ocean Influence: A high-pressure system in the southern Indian Ocean helps drive the southwest monsoon.
    • Atmospheric Factors: Influencers include the Subtropical Jet Stream, Tropical Easterly Jet, and ITCZ.
    • Other Drivers: The Somali Jet, Somali Current, Indian Ocean Dipole, and Walker Cell also affect monsoon behaviour.

    How does monsoon impact wind variability?

    • Changing Wind Speeds: Monsoon wind speeds vary in strength and direction over time and place.
    • Energy Planning: Wind behaviour prediction is crucial for renewable power management, especially wind energy.
    • Agricultural Demand: Kharif crops planted in June depend on monsoon, raising seasonal energy demand.
    • Wind Energy Output: In areas like the Western Ghats, 70% of wind energy is generated June–September.
    • Forecasting Tools: Numerical Weather Prediction (NWP) models provide high-resolution wind forecasts.
    • AI Models: Tools like Google’s MetNet3 use satellite and radar data to predict wind in remote areas.

    India’s Wind Energy: Capacity, Growth & Challenges

    • India became the 3rd largest wind and solar producer in 2024, after China and the US.
    • Installed wind capacity: 50 GW as of March 31, 2025.
    • In 2024, wind and solar contributed 10% of electricity—solar 7%, wind 3%; hydro added 8%, totalling 22% from clean sources.
    • Solar capacity grew by 24 GW in 2024, doubling 2023’s figure; wind grew by 3.4 GW.
    • Leading wind additions: Gujarat (1,250 MW), Karnataka (1,135 MW), Tamil Nadu (980 MW).
    • Top wind states: Tamil Nadu, Gujarat, and Maharashtra; targets: 140 GW wind and 500 GW non-fossil capacity by 2030.
    • Land Use & Capacity Utilization Factor (CUF): Wind farms occupy just 2% of land, allowing agriculture on the rest; CUF ranges between 16%–19%, with peak generation during monsoon months.

     

    [UPSC 2014] The seasonal reversal of winds is the typical characteristic of:

    Options: (a) Equatorial climate (b) Mediterranean climate (c) Monsoon climate * (d) All of the above climates

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

    Attend Now

Join the Community

Join us across Social Media platforms.