Mains Ready By December. Smash Mains & Smash PYQ Admissions Open
Talk to Mentor

Civilsdaily

Search results for: “”

  • Let the Western Ghats breathe

    Why in the News

    The Rs 10,000 crore, 2,000 MW Sharavathi Pumped Storage Project in Karnataka is under an interim stay by the Karnataka High Court, with work frozen until further orders. The project sits entirely inside the Sharavathi Valley Lion-Tailed Macaque Wildlife Sanctuary. An expert panel constituted by the Standing Committee of the National Board for Wildlife (NBWL) had earlier recommended against approving it. The contest is between a state that needs storage to absorb intermittent renewable power and a protected rainforest where such construction is barred outright.

    How does the Sharavathi Pumped Storage Project work?

    1. What it connects: The project links the Talakalale and Gerusoppa reservoirs on the already heavily dammed Sharavathi river.
    2. What has to be built: The link runs through massive underground tunnels and powerhouses cut into the valley.
    3. The pumping cycle: Water is pumped uphill during off-peak hours, when demand and power prices are low.
    4. The generating cycle: The stored water is released downhill to generate power during peak demand.

    Why do the Western Ghats matter beyond their species counts?

    1. Scale of the chain: The Western Ghats run 1,600 kilometres along the edge of the peninsula.
    2. Global standing: They are one of the world’s eight hottest biodiversity hotspots.
    3. What they hold: They harbour nearly half of India’s flowering plant species, a third of its vertebrate fauna, and over 300 globally threatened species.
    4. Narrow endemics: Species such as the Katlekan Marsh Nut and the Gund Day Gecko are found only in these forests and nowhere else.
    5. What primary forest looks like: In the Katlekan dark forest of North Kanara the canopy cuts out light so completely that a torch is needed at midday, a structure the fragmented woodlots counted as forest elsewhere do not reproduce.

    What do the Ghats do for the peninsula’s water and climate?

    1. First contact with the monsoon: The chain takes the first impact of the southwest monsoon and releases it downstream.
    2. Source of the Deccan’s rivers: The Godavari, Krishna, Kaveri and Tungabhadra all originate here, sustaining hundreds of millions of people across six states.
    3. Regional climate function: The dense forests temper regional climate, draw down carbon, hold soil in place, and soften the runoff and flooding that would otherwise reach the downstream plains.
    4. A moisture recycling system: Like the Amazon basin, these rainforests cycle moisture back into the atmosphere, which sustains the monsoon that feeds them.

    Why did the wildlife expert panel advise against approval?

    1. The siting is barred by law: The project lies wholly within a wildlife sanctuary that carries one of the highest levels of protection under the Wildlife (Protection) Act, 1972, where such infrastructure is strictly prohibited.
    2. The panel’s finding: The expert panel constituted by the NBWL Standing Committee recommended against approval, citing irreversible ecological harm.
    3. The technical objection: The panel questioned the project’s technical justification and found it would yield no new net energy to the grid.
    4. A net energy loss: Pumping requirements would produce a net loss of approximately 500 MW.

    What are the physical costs of building inside the sanctuary?

    1. Primary forest cleared: The project requires clearing over 50 hectares of dense primary evergreen forest.
    2. Corridors broken: The clearance fragments wildlife corridors between the Anshi-Dandeli and Bhadra-Kudremukh landscapes, cutting the routes large mammals use to move between the two.
    3. Landslide risk: The zone is geologically fragile, and blasting for underground tunnels and powerhouses with heavy industrial explosives raises the risk of slope failure.

    Does rejecting the project leave Karnataka’s storage need unanswered?

    1. The need is real and conceded: Karnataka has an installed renewable energy capacity of 20.23 GW, and critics of the project accept that this output has to be firmed up.
    2. Why storage is the constraint: Solar and wind generation is intermittent, so the grid needs a way to shift surplus power to hours of peak demand.
    3. The options are plural, not singular: Battery Energy Storage Systems, compressed air energy storage and gravity energy storage sit alongside pumped storage as ways to manage that intermittency.
    4. The siting question is separable from the technology question: Accepting the need for storage does not settle where a storage project may be built.

    Conclusion

    The argument is not that pumped storage is wrong, it is that this catchment is the wrong place to put it. A project that yields no new net energy and consumes more power than it returns cannot justify clearing primary evergreen forest. The Karnataka High Court’s interim stay holds the position for now. What remains unresolved is whether the clearance system will treat the highest protection category as an absolute siting bar or as a threshold that can be crossed on a case by case finding.

    What is Environmental Impact Assessment?

    1. About: Environmental Impact Assessment (EIA) is a planning tool that predicts and seeks to mitigate the environmental consequences of a project before it is approved.
    2. Statutory history: India introduced EIA in 1978 for river valley projects, made it statutory through the 1994 notification under the Environment (Protection) Act, 1986, and consolidated it in the EIA Notification, 2006.
    3. Who appraises what: Category A projects are appraised centrally by the Ministry of Environment, Forest and Climate Change, and Category B projects by the State Environment Impact Assessment Authority, with Category B1 alone requiring a full study and a public hearing.

    Challenges in Environmental Impact Assessment

    1. Conflict of interest in who pays: The assessment is funded by the project proponent, which creates an incentive to understate impacts. Eg. Independent data on the Mundra Port and Special Economic Zone exposed deficiencies the proponent’s own assessment had missed. Fix. Have EIA reports audited by an autonomous body not funded by the proponent.
    2. Cumulative impact goes unmeasured: Appraisal runs project by project, so the combined load on one river is never assessed. Eg. National Green Tribunal orders in 2024 and 2025 cancelled clearances on this ground. Fix. Move to landscape level cumulative assessment for a whole catchment.

    Back2Basics: Sharavathi Valley Lion-Tailed Macaque Wildlife Sanctuary

    1. Location: In the Sharavathi river valley, Shivamogga district, Karnataka.
    2. Landmarks within it: Jog Falls and the Linganamakki reservoir lie inside it.
    3. Flagship species: The lion-tailed macaque, an endemic arboreal primate, is a keystone seed disperser and an indicator of forest health.

    Matching Previous Year Question

    “[2024, GS3, 10 marks] What role do environmental NGOs and activists play in influencing Environmental Impact Assessment (EIA) outcomes for major projects in India? Cite four examples with all important details.”

  • Sailing on uncertainty

    Why in the News

    Panama has declared a state of emergency over falling water levels in the Panama Canal. The trigger is an El Nino driven drought across the region, which has cut the fresh water the waterway needs to move ships. Canal authorities are rationing passage in response, cutting the number of vessels allowed through each day. A waterway is therefore limiting traffic for reasons of rainfall rather than of shipping demand.

    Why does a rainfall deficit stop ships in the Panama Canal?

    1. Every transit spends fresh water: The canal moves ships between two ocean levels through a series of locks, and each lockage releases stored fresh water that is not recovered.
    2. Rainfall over the watershed is the only refill: The reservoir system that feeds the locks is replenished by rain falling on the canal catchment, so a rainfall shortfall translates directly into fewer lockages the system can support.

    What does rationing transits mean for global shipping?

    1. The canal carries a fixed share of world trade: The shipping route handles 5% of global maritime trade, so a capacity cut is felt across ocean freight rather than in one region alone.
    2. Slots are being withdrawn in two steps: Daily transits fall from 36 to 34 from September 3, and to 32 later in the month.
    3. Vessels wait for the reduced slots: Container ships are queuing outside the canal for passage, adding waiting time to voyages that were scheduled against the old transit count.

    Conclusion

    Drought has turned the Panama Canal from a fixed piece of trade infrastructure into a variable one. Panama’s state of emergency is in force and the second stage of the transit cut takes effect later in September. The next marker is the canal authority’s own restoration notice, which will show whether the catchment has refilled.

    Back2Basics: Panama Canal

    1. What it is: An artificial waterway across the Isthmus of Panama linking the Atlantic Ocean, through the Caribbean Sea, to the Pacific Ocean.
    2. Opened and transferred: It opened in 1914 under United States control, and full control passed to Panama at the end of 1999.
    3. Capacity classes: An expanded set of larger locks opened in 2016, creating the Neopanamax class of vessel alongside the older Panamax limit.

    Matching Previous Year Question

    “[2011] Between India and East Asia, the navigation time and distance can be greatly reduced by which of the following? 1. Deepeing the Malacca straits between Malaysia and Indonesia. 2. Opening a new canal across the Kraisthmus between the Gulf of Siam and Andaman Sea. (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 ANSWER: (b)”

  • Why is FSSAI tightening the rules on food claims?

    Why in the News

    The Food Safety and Standards Authority of India (FSSAI) has issued more than 150 notices to food companies in recent months over misleading advertisements, false claims and labelling non compliance. Mondelez India has withdrawn certain health and nutrient comparison claims for Bournvita and removed the related advertisements from e-commerce platforms. The regulator has extended its scrutiny beyond the physical package to online marketplaces and food service establishments. A claim can be withdrawn on notice years after consumers have already acted on it, which is what makes the reach of this enforcement contested.

    What is a health claim, and what is a nutrient comparison claim?

    1. Health claim: A statement suggesting that a product helps deliver a particular health outcome. It can create expectations beyond what the product’s ingredient composition or the available evidence justifies.
    2. Nutrient comparison claim: A claim that positions a product’s nutrient content against another product or against a reference, such as a comparative calcium benefit.
    3. What the regulator governs: Food regulation is not limited to whether a product contains permitted ingredients. It also governs how a product’s nutritional qualities and benefits are communicated.

    Which claims and companies are under scrutiny?

    1. The companies served notices: The list includes Nestlé India, PepsiCo, Coca-Cola India, Abbott India, Red Bull India, Danone India, Mondelez India, Ferrero India and Kenvue.
    2. Bournvita: The product came under public scrutiny in 2023 over its sugar content and its claims about nutritional benefits. The present action does not establish that the product is unsafe, it questions whether particular claims are adequately supported.
    3. Amway India: The company removed “100%” from its “100% Pure Coconut Oil” packaging and promotional material. It also dropped the “Energy Drink” descriptor from its caffeinated XS products.
    4. Juza Foods: The Kerala based company agreed to withdraw claims of immunity, stronger bones and comparative calcium benefits from its baby food products.

    Why has the regulator targeted the word “100%”?

    1. The advisory: In May 2025 FSSAI advised food businesses to stop using “100%” on food labels, packaging and promotional material.
    2. The reasoning: The regulator held that such language conveys a false sense of absolute purity or superiority to consumers.
    3. Why absolute words matter: Words such as “pure”, “natural”, “healthy”, “immunity-boosting” and “100%” influence a purchase before the consumer examines the nutrition panel or the ingredient list.

    Why has enforcement moved to e-commerce?

    1. Notices beyond the shelf: Notices have gone to online marketplaces as well as to restaurants and other food businesses.
    2. Online pages carry different content: An online product page can carry claims, images and promotional language that differ from what appears on the physical package.
    3. How consumers now decide: A purchase is often made off an online banner or product description rather than off the label read in a shop.

    What does the crackdown still leave unaddressed?

    1. Withdrawal comes late: A company can remove a claim after receiving a notice, and consumers may already have encountered that claim for years.
    2. Messaging survives across platforms: An advertisement can disappear from one platform and its messaging remain present elsewhere.
    3. Listings change faster than checks: Online listings change rapidly, which makes sustained monitoring necessary rather than one time correction.
    4. Compliance is episodic: The regulator’s task is to make compliance routine rather than a temporary response to regulatory scrutiny.

    Conclusion

    The shift being sought is from broad marketing language to claims that can be demonstrated. This matters as India confronts rising obesity and unhealthy diets, and FSSAI has linked its food safety messaging to that wider push for healthier eating. For a consumer, a health claim on a food packet remains a claim and not a guarantee.

    Matching Previous Year Question

    “[2015, GS2, 12 marks] For achieving the desired objectives, it is necessary to ensure that the regulatory institutions remain independent and autonomous. Discuss in the light of the experiences in recent past.”

  • Soon, red hexagonal label to warn of high fat, sugar, salt in snacks

    Why in the News

    The Food Safety and Standards Authority of India (FSSAI) has told the Supreme Court that it proposes a red hexagonal front of pack label to warn consumers when a packaged food is high in salt, added sugar or added fat. The proposal answers the Court, which is hearing a plea by 3S and Our Health Society, a Kerala based non-profit organisation. No notification has been issued. What is contested is whether the phasing and the trigger conditions attached to the label leave most unhealthy products outside it.

    What would the proposed label carry?

    1. Shape and placement: The label is a red hexagon carried on the front of the packet, so the warning is visible before the pack is turned over.
    2. Language and size: The warning will be in English, in a font one point larger than the font used in the nutritional information table at the back of the pack.
    3. The declarations: The label will state “high fat”, “high sugar”, “high salt” or “highly sweetened beverage”, as applicable, to let consumers identify products high in the specified nutrients.
    4. The thresholds: What counts as high is set against the thresholds in the Dietary Guidelines for Indians, 2024, issued by the Indian Council of Medical Research and the National Institute of Nutrition (ICMR-NIN).

    How will the rollout be phased?

    1. The first phase: Only products high in at least two of the ingredients of concern will carry the warning label.
    2. The second phase: The warning will extend to products high in even one ingredient.
    3. The stated reason: FSSAI said the two phase plan is meant to secure consumer acceptability and to give industry adequate time for reformulation.

    Which products are exempt?

    1. Single ingredient foods: Food products with a single ingredient fall outside the labelling requirement.
    2. Foods inherently rich in the nutrients: Ghee, edible oil, salt, sugar, jaggery and honey are exempt, subject to the other requirements under the food safety and labelling regulations.

    Why do nutrition experts call the proposal ineffective?

    1. The two nutrient trigger: The Convener of Nutrition Advocacy in Public Interest (NAPi) India said many unhealthy products will not need the warning label in the first phase, since they are high in just one nutrient.
    2. No date for the second phase: FSSAI has given no timeline for the phase in which every product high in fat, sugar or salt must carry the warning.
    3. The word “added”: The warning is triggered only by added sugar or added fat, and the added quantity is difficult to estimate.
    4. Natural sugars escape the trigger: High levels of naturally occurring sugars also harm health, and the proposed trigger does not capture them.
    5. Presentation: The proposed font size is too small, and the message should also be carried in Hindi.

    Conclusion

    FSSAI has accepted warning labelling in principle, and the conditions attached to it decide how many products will actually carry a warning. The petitioner has circulated a revised draft, invited public comments on it, and will file a rejoinder once those comments are received. The next milestone is the notification itself, which will show whether the second phase carries a date.

    Back2Basics

    1. Statutory basis: FSSAI was established under the Food Safety and Standards Act, 2006.
    2. Parent ministry: It functions under the Ministry of Health and Family Welfare.
    3. Mandate: It lays down science based standards for articles of food and regulates their manufacture, storage, distribution, sale and import.
    4. Labelling powers: Packaging and labelling requirements for packaged food, including what must be declared on the pack, are framed under regulations it issues.

    Matching Previous Year Question

    “[2016] With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011? 1. List of ingredients including additives 2. Nutrition information 3. Recommendation, if any, made by the medical profession about the possibility of any allergic reactions 4. Vegetarian/non-vegetarian Select the correct answer using the code given below. (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1, 2 and 4 (d) 1 and 4 only ANSWER: (c)”

  • ‘CAS is a move in the right direction, but the timing may not be right’

    Why in the News

    The Securities and Exchange Board of India (SEBI) has replaced the method used to fix closing prices on the stock exchanges with a Closing Auction Session (CAS), implemented at the start of this month. The earlier method took the volume weighted average price (VWAP), the average price of the last 30 minutes of trading, which a large order placed in the closing moments could tilt. The change follows the Jane Street episode, after which the regulator concluded that the earlier method could be moved in a participant’s favour. Traders hold that the direction of the change is right and the timing is not, since Indian markets carry far higher retail participation than the institution driven markets the mechanism was borrowed from.

    How does the Closing Auction Session work?

    1. Normal trading closes at 3.15 pm: Trading runs as usual until 3.15 pm, and all pending limit and market orders are carried forward into the CAS. Stop loss orders are removed from the system.
    2. Reference prices are computed through the session: Exchanges calculate reference prices from 3.15 pm to 3.30 pm.
    3. Order types narrow as the session runs: Market or limit orders may be placed between 3.20 pm and 3.25 pm (a market order executes at the prevailing price, a limit order executes only at the price stated by the trader). From 3.25 pm only limit orders are accepted.
    4. The close is randomised: The session ends at a random time between 3.27 pm and 3.30 pm. Derivatives continue to trade until 3.40 pm.

    Why did SEBI move away from the volume weighted average price method?

    1. The weakness in an average: A large quantity traded in the closing moments moves the average, so the preceding 30 minutes count for little in the final price.
    2. The trigger for the review: The regulator concluded after the Jane Street episode that the closing price under the earlier method could be tilted.
    3. Global practice: Auction based closes are already used in developed markets, including the United States and the United Kingdom.
    4. Institutional demand: Financial institutions and global players pitched the auction as the better mechanism for determining closing prices.

    What does the auction change for participants?

    1. Participation replaces dependence on a single print: The closing price is formed from orders placed in the auction rather than from a computed average, which makes price discovery more broad based.
    2. Orders are no longer tied to the closing price: A participant can place an order at a higher or lower price according to their own requirement, instead of matching at whatever the closing price turns out to be.

    Why are volumes in the session thin?

    1. Participants are still adjusting: The session is new, and a change in market structure is first thought over and played out with caution before it is used.
    2. The matching price is not visible: Price matching runs for five to seven minutes behind the scenes, so a participant does not know the price at which an order will match.
    3. Part execution is the likely outcome: An order placed two per cent away from the market carries no certainty that the full quantity will be executed, and under executions are the more likely result.
    4. The largest volume generators are absent: Arbitrage firms and proprietary trading firms are sitting out, since the session gives them neither the time nor the visibility to hedge in the futures and options (F&O) segment. They do not run unhedged positions.

    Why is the timing of the change contested?

    1. Market maturity: The Indian market is not yet mature enough for a mechanism designed for markets where participants have full information on when and how to participate.
    2. Retail share is higher than in comparable markets: India has much higher retail participation than other major markets, which are institution driven, and retail awareness of the new session is still at an early stage.
    3. A longer parallel run was possible: The session could have been run in simulation or in parallel with the earlier system for longer, giving participants time to get used to it before implementation.
    4. Small orders may not find a match: Most retail investors trade in small ticket sizes, so a large institutional order placed in the session is unlikely to be matched.
    5. Leverage pulls retail elsewhere: Retail traders prefer the derivatives segment over the auction because of the higher leverage available there.

    Conclusion

    The Closing Auction Session has been in force since the start of the month and is still evolving, which makes a comparison with the earlier method premature. Volumes remain low and the participants who generate most of them are staying out until they can hedge around the randomised close. The next test is whether participation broadens as the mechanism settles and awareness spreads at the retail level.

    Matching Previous Year Question

    “[2023] Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets? (a) Only one (b) Only two (c) Only three (d) All four ANSWER: (b)”

  • Chandra’s settlement comes as IBC turns 10, with bank haircuts at five-year high

    Why in the News

    The National Company Law Tribunal (NCLT) has approved a personal insolvency repayment plan under which Zee Group founder Subhash Chandra will pay Rs 6.5 crore against admitted claims of Rs 22,006.57 crore. That is a 99.97 per cent haircut, one of the highest in the history of the insolvency regime. It comes as the Insolvency and Bankruptcy Code, 2016 (IBC) completes ten years in force. Banks are considering an appeal before the National Company Law Appellate Tribunal (NCLAT). The dispute is whether the Code should be judged by what creditors recover or by whether a stressed asset is resolved at all.

    What is a “haircut” under the Insolvency and Bankruptcy Code, 2016?

    1. The term is not defined in the Code: The IBC nowhere defines a haircut. Banking practice uses the word for the percentage reduction in the value of an asset pledged as collateral, applied to protect the lender against loss.
    2. What the Code was enacted to do: The IBC was enacted in 2016 to rescue companies under financial stress or heavy debt through resolution and repayment to creditors.
    3. A creditor majority binds the minority: Once the required majority of creditors approves a repayment plan and the tribunal sanctions it, a dissenting creditor cannot walk away and demand a separate settlement.

    Why has the Chandra order revived the haircut debate?

    1. The size of the write down: The order of 25 August approved payment of Rs 6.5 crore to creditors, plus Rs 25 lakh towards the costs of the process.
    2. The liability arises from personal guarantees: Much of the admitted claim relates to personal guarantees and indemnities given for borrowings by companies associated with the Essel Group.
    3. The route is personal insolvency: The proceedings ran against the individual promoter as a personal guarantor rather than against a corporate debtor.
    4. Lenders are weighing a challenge: Banks are considering an appeal against the approval before the NCLAT.

    What does the recovery record under the Code look like?

    1. Cases resolved and value realised: Between 2021-22 and 2025-26, 1,077 cases were resolved under the IBC, with a realisation of Rs 2.47 lakh crore for creditors.
    2. The five year average: Average recovery against admitted claims across those five years was close to 29 per cent.
    3. The year wise trend: Recovery was 24 per cent in 2021-22, 39 per cent in 2022-23, 28 per cent in 2023-24 and 37 per cent in 2024-25, before falling to 20 per cent in 2025-26, the lowest in five years.
    4. What the figure means for a lender: A bank may hold claims running into thousands of crore rupees and receive only a fraction of what it is owed.

    Why do the banks contest the vote that approved the plan?

    1. The margin of approval: Twenty three creditors participated in the voting, and the plan was approved with 80.814 per cent of the votes cast in its favour.
    2. Every bank voted against: The banks that opposed the plan held a combined vote share of only 19.186 per cent.
    3. The related party allegation: Banks say at least five entities holding 61.78 per cent of the votes cast, all of which backed the plan, are linked to the debtor as associates or related parties.
    4. The exclusion sought: A trustee company argued that the votes of an investment company and its two subsidiaries should not have been counted. A resolution professional is the person appointed to manage the affairs of an entity under insolvency and to facilitate its resolution.
    5. The subsidiary argument: The debtor’s counsel argued that a parent company that is not itself an associate of the debtor cannot pass that classification to its downstream subsidiaries.
    6. The debtor’s response: Chandra’s office rejected the allegation as inaccurate. It said the entities referenced belonged to a relative whose business interests were separated in 2008-09, and that they do not qualify as associate entities under the Code.

    Is the Code meant to maximise recovery, or to resolve?

    1. The government’s position: The Ministry of Corporate Affairs holds that the primary objective of the Code is resolution and not recovery.
    2. Why claims are treated as the wrong benchmark: The Ministry told the standing committee on finance in December 2025 that the assets available on the ground are the better measure, since the market values what a company brings to the table and not what it owes.
    3. What an admitted claim contains: A claim often includes a non performing asset (NPA) that may be fully written off, the interest on that asset, and both a loan and the guarantee given against it.
    4. The value that is not counted: Realisation figures exclude the value that may come from equity holdings after a resolution.
    5. The indirect gain claimed: The Code is credited with creating credit discipline, which has contributed to reducing the gross non performing assets of banks.
    6. The banks’ counter: Banks argue that the problem lies in the valuation of stressed companies, that all assets should be included and properly valued, and that the process is opaque.
    7. The valuation mechanism in dispute: At least two valuers are appointed to give a fair value and a liquidation value, based on records and physical examination of the assets. The Chairman of the State Bank of India told the standing committee that valuation should reflect enterprise value instead of liquidation value.

    Challenges to the Insolvency and Bankruptcy Code, 2016

    1. Delay erodes the value a resolution can fetch: A stressed company loses value for every year it stays unresolved, so the price a resolution applicant will pay falls with time. Eg. Videocon Industries was resolved in 2021 at about five per cent of admitted claims, and the NCLAT stayed the approved plan on that ground. Fix. Tie admission to a fixed outer date from the default so the asset reaches the market before it is stripped of value.
    2. Liquidation remains a more common outcome than rescue: A large share of admitted cases ends in liquidation rather than in an approved resolution plan, which inverts the Code’s stated purpose. Eg. The Insolvency and Bankruptcy Board of India’s quarterly newsletters have consistently reported more closures by liquidation than by resolution. Fix. Extend the pre-packaged insolvency route, available to micro, small and medium enterprises since 2021, to larger firms so a rescue is negotiated before value is lost.
    3. The individual insolvency framework is only partly in force: Part III of the Code was notified in December 2019 for personal guarantors to corporate debtors alone, and the remaining provisions for individuals and partnership firms have not been brought into force. Eg. A defaulting individual who is not a personal guarantor has no route under the Code at all. Fix. Notify the remaining Part III provisions along with a designated adjudicating forum for individual cases.

    Conclusion

    The appeal now being prepared will decide whether the disputed votes were correctly counted, and that is the next milestone in this case. Valuation is the point on which the recovery and resolution positions turn, and shifting stressed asset valuation to enterprise value is still only a suggestion before the committee.

    Matching Previous Year Question

    “[2017] Which of the following statements best describes the- term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government. (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties. (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings. (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government. ANSWER: (b)”

  • Govt. to replace 2 lakh old trucks/buses in Delhi-NCR in one year (PARIVARTAN scheme)

    Govt. to replace 2 lakh old trucks/buses in Delhi-NCR in one year (PARIVARTAN scheme)

    Why in the News

    The Union government aims to replace more than two lakh trucks and buses in Delhi and the National Capital Region with BS VI or electric vehicles within a year under the PARIVARTAN scheme, the Road Secretary has said. This brings forward a two year implementation timeline the Union Cabinet had earlier approved for the scheme. Trucks and buses make up only 3.1% of the region’s total vehicle fleet but contribute 36% of vehicular PM2.5 emissions, so the scheme concentrates replacement incentives on a small segment of the fleet rather than vehicles as a whole.

    What is the PARIVARTAN scheme?

    1. A vehicle renewal and incentive scheme: PARIVARTAN (the Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) is a Union scheme to replace old trucks and buses in Delhi NCR with cleaner vehicles.
    2. Targets older commercial vehicles across four jurisdictions: It covers trucks and buses registered in Delhi and the NCR districts of Haryana, Rajasthan and Uttar Pradesh that conform to BS IV or older emission norms.
    3. Jointly funded and implemented: The scheme is funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways.

    What incentives does PARIVARTAN offer to push buyers toward cleaner vehicles?

    1. A large but shared financial outlay: The scheme carries a total financial outlay of Rs. 9,585 crore, of which Rs. 5,041 crore is central budgetary support.
    2. Lower cost of borrowing: Eligible buyers get a 5% interest subvention on vehicle loans for five years.
    3. Waived recurring and one time levies: Eligible buyers of new BS VI vehicles get a 100% road tax waiver for 10 years and exemption from registration fees.
    4. A manufacturer side discount: Eligible buyers also get at least an 8% discount on the ex showroom price from participating vehicle manufacturers.

    Challenges to the PARIVARTAN scheme

    1. Fleet turnover in one year is an aggressive compression: Compressing the replacement of over two lakh vehicles into one year against an originally planned two year timeline strains scrapping, registration and financing capacity built for a slower pace. Eg. India’s separate vehicle scrappage policy has itself faced slow uptake since 2021 because of limited authorised scrapping facility capacity in most States. Fix. Expand authorised vehicle scrapping facility capacity in Delhi NCR ahead of the compressed timeline, rather than relying on facilities sized for the original two year plan.
    2. Small operators may lack access to the incentives: Interest subvention and manufacturer discounts assume buyers can access formal vehicle financing, which many small truck and bus operators in the informal freight sector cannot. Eg. A large share of India’s freight trucking fleet is owned by operators with one to five vehicles, who typically borrow from informal lenders rather than banks. Fix. Route a dedicated financing window for small fleet owners through public sector banks or the National Capital Region Planning Board itself, with relaxed collateral norms.
    3. Cross state enforcement is harder than a single city ban: The scheme spans Delhi and NCR districts across three States, and inconsistent enforcement of the BS IV cutoff across State transport departments can let older vehicles keep operating in weaker enforcement pockets. Eg. Delhi’s earlier ban on end of life diesel vehicles pushed many such vehicles into neighbouring NCR districts rather than off the road entirely. Fix. Link registration renewal and permit issuance across all four jurisdictions to a shared, real time vehicle emission compliance database.

    Conclusion

    The PARIVARTAN scheme now targets replacing over two lakh Delhi NCR trucks and buses within one year instead of two, backed by a Rs. 9,585 crore incentive package. The scheme’s next milestone is the pace of actual vehicle replacement against this compressed one year timeline, particularly among small and informal fleet operators who face the greatest financing and enforcement gaps.

  • Behind Nepal floods, rising risk of glacier collapse (Explainer)

    Behind Nepal floods, rising risk of glacier collapse (Explainer)

    Why in the News

    Flash floods that swept through parts of Nepal and Tibet this week followed a glacial collapse in the Himalayas. The collapse sent a mass of ice and rock debris into the Lhende Khola and Bhote Koshi river system, and this debris reached inhabited valleys downstream. Glaciologists say such collapses are becoming more frequent because of faster warming in the Himalayas, and disaster planning for hydropower siting and early warning has not kept pace with this rising risk.

    What is a glacial collapse?

    1. Sudden mass failure of a glacier: A glacial collapse is the sudden detachment of a large mass of ice, rock and water from a glacier resting on a steep mountain slope.
    2. Triggered by geological and physical factors: Earthquakes, temperature changes and other physical changes unfolding within a glacier can trigger a collapse.

    How does a glacier’s own structure fail under stress?

    1. Formation builds a heavy, moving mass: Snow that survives several melting seasons compresses into firn (a granular midpoint stage between fresh snow and glacial ice) before recrystallising into the solid ice of a glacier.
    2. Gradient driven flow creates fracturing stress: Once a glacial mass is heavy enough it flows outward along the mountain gradient. This acceleration creates stress that exceeds the strength of the ice, and sustained movement eventually fractures it.
    3. Surface melting weakens the ice from within: Meltwater pools inside surface cracks over repeated freeze and thaw cycles. This repeated pressure eventually splits the ice all the way through.

    Why do wet base glaciers in the Himalayas pose a distinct collapse risk?

    1. Soft beds trap and channel meltwater: Where a glacier rests on soft mud or clay, trapped water moves through networks of cracks within the ice and travels toward the base.
    2. Subglacial tunnels concentrate large volumes of water: In wet base Himalayan glaciers, water collects at the base in large quantities and is occasionally connected by tunnels, so a collapse can release a concentrated volume of water at once.

    Why can a single glacial collapse trigger a second wave of flooding?

    1. Debris blocks the river before it breaks free: Collapsed ice and rock piles can block narrow river channels and form temporary natural dams downstream.
    2. A dam break repeats the flood: When such a temporary dam breaks under continuous pressure, it unleashes a second round of flooding, as happened in Nepal this week.

    Challenges to managing glacial collapse risk

    1. Rising baseline risk from faster warming: The incidence of glacier breakages in the Himalayas has increased because the region is warming faster than the global average. Eg. This week’s Nepal and Tibet collapse and debris flow into the Lhende Khola and Bhote Koshi system is one instance of this rising baseline risk. Fix. Expand year round remote seismic monitoring and high altitude early warning systems across the central Himalayan glacier belt, not only at individual high risk sites.
    2. Search and rescue capacity has not kept pace: More frequent and physically more demanding glacial collapse events place a growing burden on search and rescue missions in remote high altitude terrain. Eg. Reaching debris blocked valleys along the Bhote Koshi system after this week’s floods required search teams to operate in terrain cut off by the same collapse. Fix. Pre position high altitude search and rescue teams and equipment at seasonal staging points along known glacial risk corridors before the summer melt season.
    3. Critical infrastructure remains sited in high risk zones: Hydropower plants and other critical infrastructure continue to be built in areas exposed to glacial collapse and the flooding it can trigger. Eg. Downstream hydropower installations on Himalayan rivers were damaged in the 2021 Rishiganga Dhauliganga disaster in Uttarakhand, when an upstream ice and rock avalanche triggered a sudden flash flood. Fix. Make hazard zonation for glacial collapse and outburst flood risk a mandatory clearance requirement before critical infrastructure is sited in glacier fed river valleys.
    4. Upstream glacial instability is not systematically shared across borders: Himalayan river systems cross national boundaries, but instability observed on a glacier upstream is not routinely communicated to downstream countries before a disaster strikes. Eg. This week’s collapse originated in Tibet and Nepal before its effects reached downstream valleys, showing how upstream instability in one country can affect communities in another with little warning. Fix. Establish a standing India, Nepal and China data sharing mechanism for real time glacial and river monitoring in shared Himalayan basins.

    Conclusion

    Himalayan glacial collapses are becoming more frequent as regional warming outpaces the historical baseline, and this week’s Nepal and Tibet floods are a fresh instance of that pattern. The next step for disaster managers is to convert scattered seismic monitoring and hazard mapping efforts into a standing, cross border early warning system, before the next collapse rather than after it.

  • Need to break Manipur’s cycle of reprisal (Editorial)

    Need to break Manipur’s cycle of reprisal (Editorial)

    Why in the News

    More than three years after the Meitei-Kuki clashes began, Manipur now faces a deepening Kuki-Naga fault line. Four Naga civilians were killed this week in Kuki-dominated Kangpokpi district, an episode that follows the killing of Kuki-Thadou church pastors in May, retaliatory abductions on both sides, and the recovery a month later of the bodies of six Naga men.

    How has the conflict widened beyond the original Meitei-Kuki fault line?

    1. A second, distinct fault line has opened: What began as Meitei-Kuki violence in 2023 has produced a separate Kuki-Naga confrontation, evident in this week’s killing of four Naga civilians in Kangpokpi, a district that sits between Naga-dominated Senapati to the north and Meitei-dominated valley districts to the south.
    2. A traceable chain of retaliation: The killing of Kuki-Thadou pastors in May was followed by retaliatory abductions from both communities, and the subsequent recovery of six Naga men’s bodies a month later, establishing a pattern of reprisal rather than an isolated incident.
    3. Blockades have turned roads into contested territory: Meitei, Kuki and Naga groups have separately imposed blockades that disrupt supplies, raise the cost of food and fuel, and restrict access to healthcare, with Kangpokpi the worst affected due to its position between rival-dominated districts.

    Why has the return of an elected government failed to restore order?

    1. A power-sharing arrangement has not translated into reconciliation: The state government led by Yumnam Khemchand Singh, a Meitei chief minister with deputy chief ministers from the Kuki and Naga communities, returned in February after almost a year of President’s Rule, but has found little success pulling the state back from the brink.
    2. Social segregation has outpaced political representation: The communities remain socially segregated, so political representation across the three groups in government has not by itself addressed the everyday separation that sustains distrust and enables further violence.
    3. Displacement has produced a significant, undercounted toll: Right to Information data has revealed that more than 700 internally displaced people have died in relief camps, a toll separate from and additional to deaths from direct violence.

    Challenges to a political settlement in Manipur

    1. Security forces have struggled to secure supply routes: Security forces have had very little success ensuring the safe movement of convoys carrying essential supplies through blockaded areas. Eg. Blockades imposed by Meitei, Kuki and Naga groups have repeatedly disrupted the movement of food, fuel and medical supplies into Kangpokpi and surrounding districts. Fix. Establish dedicated, jointly monitored humanitarian corridors for essential supplies, with monitoring involving representatives from all three communities rather than security forces alone.
    2. Armed groups remain undisbanded: Militant groups from multiple communities continue to operate, and a crackdown on extremist elements has not kept pace with the scale of continuing violence. Eg. The killing of four Naga civilians in Kangpokpi this week, alongside the earlier killing of Kuki-Thadou pastors, shows armed actors from more than one community remain capable of carrying out attacks. Fix. Pursue simultaneous, verifiable disarmament commitments from armed groups across all three communities rather than sequencing disarmament by community.
    3. No agreed framework exists for resolving land and identity claims: Every claim over land and identity cannot be resolved overnight, and the absence of an interim framework leaves communities without a safe basis for movement, trade or daily coexistence. Eg. The overlapping blockades by all three communities show there is currently no shared understanding of which areas each community can safely access. Fix. Prioritise an interim framework guaranteeing safe movement, trade and access to essential services, deferring final land and identity settlements to a later, dedicated political process.

    Conclusion

    The editorial’s position is that political representation alone, through a Meitei chief minister and Kuki and Naga deputy chief ministers, cannot resolve a conflict sustained by social segregation and repeated cycles of reprisal. It calls for sustained dialogue empowering civil society leaders, an interim framework for safe movement and trade, and simultaneous disarmament and action against extremist elements, alongside the immediate arrest of those responsible for this week’s killings.

    Back2Basics: What is President’s Rule?

    Central takeover of state governance: President’s Rule, imposed under Article 356 of the Constitution, allows the Union government to assume direct control of a state’s administration when its constitutional machinery is deemed to have broken down, as occurred in Manipur for nearly a year before the elected government returned in February.

    1. PM visit to Uzbekistan, Kyrgyz Republic: Why Central Asia matters for India (Explainer)

      PM visit to Uzbekistan, Kyrgyz Republic: Why Central Asia matters for India (Explainer)

      Why in the News

      Prime Minister Narendra Modi is visiting Uzbekistan from August 29 to 30 on a bilateral visit, followed by the Kyrgyz Republic for the 26th Shanghai Cooperation Organisation (SCO) Summit from August 31 to September 1. The visit continues India’s focused Central Asia engagement, which began in 2012 with the “Connect Central Asia” policy and was reinforced when Modi became the first Indian Prime Minister to visit all five Central Asian countries in July 2015.

      What resources make Central Asia strategically valuable?

      1. Kazakhstan holds major mineral wealth: Kazakhstan has one of the world’s biggest uranium reserves along with substantial deposits of coal, lead, zinc, gold and iron ore.
      2. The Kyrgyz Republic offers gold and hydropower: The Kyrgyz Republic’s economy is built significantly around gold mining and hydropower generation potential.
      3. Turkmenistan holds vast natural gas reserves: Turkmenistan has one of the world’s largest natural gas reserves, a resource base central to regional pipeline politics.
      4. Tajikistan and Uzbekistan add hydropower, gold and uranium: Tajikistan has substantial hydropower potential, while Uzbekistan holds gold, uranium and natural gas reserves of its own.

      Why is India competing for strategic space in Central Asia?

      1. Countering China’s regional investments: China’s President Xi Jinping visited four of the five Central Asian countries in September 2022, his first overseas trip after the Covid-19 disruption, and China has made major investments in the region through its Belt and Road Initiative, which India does not want to see capture the post-Soviet space unchallenged.
      2. Security concerns following the Taliban takeover: India’s engagement is driven partly by the need for security cooperation in the wake of the Taliban’s return to power in Afghanistan, since Central Asia borders Afghanistan directly.
      3. Energy and connectivity needs: India’s interest includes Kazakhstan’s uranium reserves, Turkmenistan’s role in the proposed Turkmenistan-Afghanistan-Pakistan-India gas pipeline, and connectivity plans built around the International North-South Transport Corridor.
      4. A cultural outreach signal in 2022: India invited Central Asian leaders to the Republic Day celebrations in January 2022, an early diplomatic signal of the outreach it has since built on.

      What challenges constrain India’s Central Asia engagement?

      1. No overland access through Pakistan: Pakistan blocks India’s direct overland transport access to Central Asia, forcing India to route connectivity plans through the International North-South Transport Corridor and the Chabahar port in Iran instead. Eg. India’s push to integrate the Corridor with Chabahar exists specifically because the shorter, direct land route through Pakistan is closed to it. Fix. Prioritise completion of the Chabahar-linked rail and road segments of the Corridor on a fixed timeline, since it is the only viable alternative connectivity route available to India.
      2. Radicalisation risk along the Taliban-adjacent frontier: Central Asia is widely seen as the northern boundary of the Islamic world, and the Taliban’s ascent next door raises the risk of radicalism and a possible regrouping of the Islamic State within the region. Eg. Central Asian governments have flagged the security implications of Afghanistan’s instability spilling across shared borders. Fix. Expand India’s existing counter-terrorism training and intelligence-sharing arrangements with Central Asian states as a standing component of the engagement, not an occasional add-on.
      3. Russia-Ukraine spillover creating local churn: The Russia-Ukraine conflict has pushed some Russians with money and skills, but unable to move to the West, toward these Central Asian countries, which could bring inflows of talent and funds alongside social tension. Eg. Reports point to a rising Russian presence in Central Asian cities since the conflict began, altering local economic and social dynamics.

      What civilisational and trade links does India draw on?

      1. Deep historic ties with Uzbekistan: The only known Buddhist monastery in Central Asia is at Kara Tepa in Termez, Uzbekistan, an important centre during the Kushana era when Buddhist influence spread into the region, and close to 3,000 words are shared between Hindi and Uzbek.
      2. Shared cuisine as a marker of the connection: Similarities exist across Indian and Central Asian food traditions, including ghee and sariyok, samosa and samsa, naan and non, and pulao and pilaf.
      3. A meaningful trade relationship with Uzbekistan: India is among Uzbekistan’s top 10 trading partners, with bilateral trade in 2025-26 close to $1 billion.

      What is the SCO summit’s composition and agenda?

      1. A ten-member grouping with wide partner networks: The SCO comprises 10 member states, India, Belarus, China, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan, alongside 15 Dialogue Partners including Kuwait, Saudi Arabia, the UAE and Turkiye, and two Observers, Mongolia and Afghanistan.
      2. India joined the grouping in 2017: India has been a full SCO member since 2017, and this year’s summit also marks the third edition of the SCO+ format, expected to bring in additional states and bodies such as the United Nations and the Collective Security Treaty Organization.

      Conclusion

      Modi’s back-to-back Uzbekistan visit and SCO summit attendance extend a Central Asia policy that dates to 2012, aimed at securing energy access, countering Chinese influence and building connectivity around Pakistan’s blockage of overland routes. The next milestone is the Bishkek summit itself, from August 31 to September 1, and whatever bilateral outcomes emerge from the Uzbekistan leg beforehand.

      Back2Basics: What is the International North-South Transport Corridor (INSTC)?

      1. A multimodal route bypassing Pakistan: The International North-South Transport Corridor is a multimodal transport link connecting India to Russia and Europe via Iran, Azerbaijan and Central Asia, designed to move goods by ship, rail and road, and it is the route India relies on to reach Central Asia given the absence of direct overland access through Pakistan.

      [2025] India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect

      [A] India to Central Asia to Europe via Iran

      [B] India to Central Asia via China

      [C] India to South-East Asia through Bangladesh and Myanmar

      [D] India to Europe through Azerbaijan (2017, same Microtheme).

    More posts