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  • WMO warns of ‘very’ strong El Nino, to last until February 2027

    WMO warns of ‘very’ strong El Nino, to last until February 2027

    Why in the News

    The World Meteorological Organization (WMO) has warned of an impending very strong El Nino that is expected to strengthen and last until February 2027. Its Secretary General stated that El Nino is firmly established and has the potential to deliver a massive blow to communities and economies across the world.

    How does El Nino work?

    1. The mechanism: El Nino is a periodic warming of sea surface temperatures in the equatorial and eastern Pacific Ocean, caused by a weakening of the trade winds.
    2. Why it travels: The warming moves the region where heat and moisture rise into the atmosphere, which alters temperature and rainfall patterns far from the Pacific.
    3. Its rhythm: The phenomenon recurs every two to seven years and a single event lasts up to about twelve months.
    4. What it produces: It is known to trigger heatwaves, wet spells and extreme temperatures.

    How strong is this event, and how is that graded?

    1. The index used: Intensity is determined by the sea surface temperature averaged over three months in the Nino 3.4 region along the equatorial Pacific Ocean.
    2. The readings so far: The index surpassed 1.5 degrees Celsius above normal during May to July and crossed 2 degrees Celsius above normal in July.
    3. The persistence forecast: The likelihood of El Nino continuing through February 2027 is put at close to 100 percent, the first time the agency has forecast an event at that degree of certainty.
    4. A possible record: Exceptionally warm Pacific temperatures make this potentially the strongest El Nino since monitoring began.

    What does it mean for India this season?

    1. The monsoon largely escaped: The India Meteorological Department (IMD) confirmed that rainfall in the later half of August came under the influence of the developing El Nino. With three fourths of the season over, the monsoon has largely escaped it.
    2. A countervailing signal: A positive phase of the Indian Ocean Dipole is expected to develop during September to November, with a seasonal mean value of 0.9 degrees Celsius.
    3. Why the offset matters: A positive Dipole strengthens rainfall over the Indian region and can therefore work against El Nino’s drying influence.
    4. The offset is not assured: The Dipole swung briefly towards the positive phase in late August and then returned to neutral.

    What is the WMO doing about it?

    1. A mobilisation without precedent in the agency: The Secretary General described this as the largest mobilisation with National Meteorological and Hydrological Services in the WMO’s fifty year history.
    2. Why those agencies: National meteorological services are the bodies that convert a global seasonal outlook into forecasts and warnings people can act on.
    3. Impacts are already visible: Droughts and floods are already causing disruption, and the agency expects these to intensify as the event strengthens.
    4. The recent record: Europe recorded one of its hottest summers in recent decades this year, and August brought record temperatures in many parts of the globe.

    Challenges to acting on an El Nino warning

    1. A seasonal outlook is not a local forecast: El Nino shifts the odds of dry conditions across a season and cannot say what a particular district receives in a particular week. Eg. The 2023 monsoon closed about 6 percent below normal for India as a whole, and several subdivisions still recorded surplus rain.
      The Fix: Issue impact based forecasts at district level that translate the seasonal outlook into expected effects on sowing dates, reservoir filling and power demand.
    2. The Indian Ocean modifies the Pacific signal: El Nino’s effect on the Indian monsoon depends on the state of the Indian Ocean, so an El Nino year is not automatically a drought year. Eg. The 1997 event was among the strongest recorded and the Indian monsoon that year was normal.
      The Fix: Publish the El Nino and Dipole outlooks as one combined regional signal rather than as two separate advisories a user has to reconcile.
    3. Warnings stop short of the last mile: Early warning coverage remains uneven for small farmers and fishing communities who cannot act on a technical bulletin. Eg. The United Nations Early Warnings for All initiative exists because a large share of the world’s population is still not covered by any early warning system.
      The Fix: Route advisories through State agriculture extension and fisheries departments in local languages, tied to one specific recommended action.
    4. Reservoirs are operated on inflows, not on forecasts: Storage decisions respond to water already received, so a deficit is managed only after it has appeared. Eg. Southern region reservoirs stood far below their ten year average through the summer of 2024, after the previous year’s deficient monsoon.
      The Fix: Write seasonal forecasts into reservoir rule curves so storage is conserved in advance of a forecast dry season.
    5. The consequences outlast the monsoon: El Nino affects the rabi season and global crops, so the exposure continues well after the Indian monsoon withdraws. Eg. India restricted rice exports during the 2023 El Nino year on domestic supply concerns.
      The Fix: Set buffer stock and import cover decisions against the forecast horizon rather than against the harvest just completed.

    Conclusion

    The forecast has settled the question of whether the event arrives and left open only what is done before it peaks. India’s monsoon has escaped this season, so the exposure shifts to the rabi crop, to reservoir storage and to the summer that follows. The marker to watch is whether the Indian Ocean Dipole holds its positive phase long enough to blunt the Pacific signal over the region.

    Back2Basics: Indian Ocean Dipole

    1. What it is: The Indian Ocean Dipole is the difference in sea surface temperature between the western and the eastern parts of the tropical Indian Ocean.
    2. Positive phase: The western Indian Ocean is warmer than the eastern part near Indonesia, which favours stronger rainfall over the Indian subcontinent and East Africa.
    3. Negative phase: The eastern part is warmer, which suppresses rainfall over India and shifts it towards Indonesia and Australia.
    4. How it is tracked: It is measured as the Dipole Mode Index, the temperature gradient between the two poles of the ocean.

    [2017] With reference to ‘Indian Ocean Dipole (IOD)’ sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct?

    1. IOD phenomenon is characterized by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean.

    2. An IOD phenomenon can influence an El Nino’s impact on the monsoon.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • In a first, Rlys to build 6 freight lines with pvt firms using highways’ hybrid funding model

    Why in the News

    The Public Private Partnership Appraisal Committee under the Ministry of Finance has approved six railway lines spanning 647 km along freight corridors, to be built under the Hybrid Annuity Model. This is the first time Indian Railways will implement a project under the model, which was developed for the highways sector to split project costs and risks between the government and the private builder. The Committee had earlier given in principle approval to the same projects under the Design, Build, Finance, Operate and Transfer (DBFOT) model, and switched to the Hybrid Annuity Model after market feedback. The tension is that attracting private capital required Indian Railways to keep the traffic and tariff risk on its own books, so the financing burden moves. The demand risk does not move with it.

    How does the Hybrid Annuity Model work here?

    1. The construction cost is split: Indian Railways pays 40 percent of the bid project cost as a grant during the construction period. The private party finances the remaining 60 percent.
    2. Repayment begins after commissioning: Once the line is operational, Indian Railways repays the private party’s 60 percent through annuity instalments, plus interest on the annuity.
    3. Maintenance is paid separately: Indian Railways also makes regular payments to the concessionaire for maintenance of stations, tracks and other assets.
    4. Operations stay public: Indian Railways operates the trains and collects all freight revenue.

    Which lines were cleared and what will they carry?

    1. Four of the six lines are in Odisha: These are the 49.58 km Balaram-Putgadia-Tentuloi inner corridor, the 112.56 km Budhapank-Tentuloi-Luburi outer corridor, the 101.26 km Jajpur-Keonjhar Road-Aradi-Dhamara Port line, and the 48.96 km line from Tikiri Station to the Waltair bauxite mines.
    2. Telangana carries the longest line: The 207.80 km Manuguru to Ramagundam line is the single largest of the six.
    3. Jharkhand carries the sixth: The 126.52 km Pakur to Godda line completes the set.
    4. Coal dominates the freight mix: The key commodities on these routes are primarily coal, along with iron ore, bauxite, coke, chemical manure, cement and food grains.

    What does the switch away from DBFOT change?

    1. Risk allocation moved to the public side: The Ministry of Railways would bear the traffic and tariff risks under the proposed structure, per the minutes of the Committee meeting held on 1 August.
    2. The private party is insulated from demand shortfalls: If freight loading or revenue falls below target, the private party is not penalised.
    3. Bid conditions remain to be fixed: The request for proposal will specify the minimum tenure of the agreement, the roles of the engineering, procurement and construction contractor, and the circumstances in which such arrangements are permitted.

    What is the money and the sequence?

    1. Two cost figures govern the projects: The total bid project cost of the six lines is Rs 15,976 crore, and the total capital cost covering the entire concession period is Rs 40,866 crore.
    2. The concession runs 17 to 19 years: That period covers construction, operation and the annuity repayments.
    3. Approval is not yet final: The projects go to the Union Cabinet before bids are invited.
    4. The build starts at the end of the decade: Bidding is expected in the 2027-28 financial year and construction of all six projects is proposed to commence from April 2028.

    Where does this sit in the Railways’ private investment record?

    1. Completed projects are modest in value: 18 projects worth Rs 16,686 crore have been completed through the public private partnership model in Indian Railways.
    2. Seven are under implementation: These are worth Rs 16,362 crore and include coal and port connectivity projects.
    3. The pipeline is far larger than the record: 49 other projects, costing around Rs 1.80 lakh crore, await execution under the partnership mode.
    4. The policy menu was widened deliberately: Indian Railways recently added the Hybrid Annuity Model and the Development Partner Model to its participative policy, to overcome financial bottlenecks and attract long term private capital.

    Challenges to the Hybrid Annuity Model in railways

    1. Annuity payments create long dated committed liabilities: Deferring 60 percent of the cost converts a capital expenditure decision into a fixed claim on operating revenue for nearly two decades. Eg. The National Highways Authority of India’s annuity and deferred payment obligations under its hybrid annuity projects have become a standing charge on its balance sheet. Fix. Publish a consolidated annuity liability statement alongside the Railway budget so the future claim is visible when the project is sanctioned.
    2. Freight demand is concentrated in a single commodity: Corridors built primarily for coal are exposed to a policy driven decline in thermal coal movement over the concession period. Eg. Coal accounts for roughly half of Indian Railways’ freight tonnage and a larger share of its freight earnings. Fix. Structure the corridors for multi commodity handling and terminal access rather than dedicated colliery to plant movement.
    3. Land acquisition and forest clearance drive the delay risk: Mineral corridors in Odisha and Jharkhand cross forest land and scheduled areas where consent and clearance timelines are unpredictable. Eg. Rail connectivity projects to mining belts have run past a decade waiting on forest clearance and rehabilitation settlements. Fix. Make financial closure conditional on prior possession of a defined share of the alignment, as the highways sector now requires.
    4. Dispute resolution has been the weak link in the highways precedent: Disagreements over cost variation, change of scope and delay attribution have taken years in arbitration. Eg. Arbitration claims against the highways authority have run into tens of thousands of crore rupees across concession disputes. Fix. Provide for a standing independent engineer with binding interim determinations written into the concession agreement.

    Conclusion

    The design question the model leaves open is whether shifting the financing burden to private balance sheets actually reduces the state’s exposure or merely reschedules it. Demand risk is retained on the public balance sheet either way. What to watch is the bid response once the Union Cabinet clears the projects and the request for proposal is issued, since the number of qualified bidders is the only real test of whether the risk split is priced as attractive.

    Back2Basics

    1. Location: It functions under the Department of Economic Affairs in the Ministry of Finance.
    2. Mandate: It appraises and approves central sector public private partnership projects above a specified cost threshold.
    3. Composition: It is chaired by the Secretary, Department of Economic Affairs, with the sponsoring ministry and the planning and legal departments represented.
    4. Process: It grants in principle approval at the project structuring stage and final approval before the project is placed before the Union Cabinet.

    Matching Previous Year Question

    “[2022, GS3, 10 marks] Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India.”

  • India, Kuwait hold inaugural key dialogue in Delhi to bolster defence ties

    Why in the News

    India and Kuwait held the inaugural meeting of the India-Kuwait Joint Defence Committee in New Delhi on August 28. Both sides agreed to expand bilateral defence cooperation across training, military exercises, industry, and research and development. The meeting operationalises the Memorandum of Understanding (MoU) on Defence Cooperation signed during Prime Minister Narendra Modi’s visit to Kuwait in December 2024.

    Why does an institutionalised defence dialogue with Kuwait matter for India?

    1. A first standing forum with a Gulf monarchy on defence: The Joint Defence Committee gives India and Kuwait a recurring institutional channel, rather than one-off visits, to advance training, joint exercises, defence industry links and research and development.
    2. Extends India’s Gulf defence footprint beyond energy ties: India’s engagement with the Gulf has historically centred on energy imports and the diaspora; a dedicated defence committee with Kuwait signals a broadening of the relationship into security cooperation, alongside similar frameworks India already runs with Saudi Arabia and the United Arab Emirates.
    3. Kuwait sits at a sensitive maritime chokepoint: Kuwait’s location near the head of the Persian Gulf and the Strait of Hormuz gives India a stake in the security of a route through which a large share of its crude oil imports transit.

    Challenges to the India-Kuwait defence relationship

    1. Limited defence-industrial base on the Kuwaiti side: Kuwait’s domestic defence manufacturing capacity is minimal, so cooperation is likely to stay import and training-oriented rather than co-production, unlike some of India’s other defence partnerships. Eg. India’s co-production discussions with the United States on the Javelin missile system have no current parallel in the Kuwait relationship. Fix. Use the Joint Defence Committee’s industry track to identify smaller co-development areas, such as maintenance, repair and overhaul services, where Kuwait’s capacity constraints are less binding.
    2. Competing suppliers already entrenched in the Gulf: Gulf states, including Kuwait, have longstanding defence procurement relationships with the United States, the United Kingdom and France, which limits the near-term scope for India to secure large equipment sales. Eg. Kuwait’s air defence and fighter fleets are built around US and European platforms, leaving India’s defence exports pitch centred on niche systems and services rather than big-ticket sales.

    Conclusion

    The inaugural Joint Defence Committee meeting converts the 2024 MoU into a standing institutional mechanism, marking a modest but concrete step in India’s effort to deepen security ties with the Gulf beyond energy and trade. The substantive test will be whether the committee produces actual joint exercises, training exchanges or industry tie-ups before its next meeting.

    What is the Gulf Cooperation Council (GCC)?

    1. A regional grouping, not Kuwait’s own body: The Gulf Cooperation Council is a political and economic union of six Gulf Arab states, Kuwait, Saudi Arabia, the UAE, Qatar, Bahrain and Oman, formed in 1981 to coordinate economic, security and foreign policy matters among them.
    2. India engages the GCC bilaterally, not as a bloc: India does not have a defence framework with the GCC as a single entity; agreements such as the Joint Defence Committee are negotiated bilaterally with individual member states like Kuwait.

  • FCNR(B) deposits push forex reserves to all-time high of $729 bn in August

    Why in the News

    The Reserve Bank of India’s concessional swap window for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits has propelled India’s foreign exchange reserves to a record $729.33 billion as of 21 August, surpassing the previous all-time high of $728.49 billion recorded on 27 February, just a day before the United States and Israel struck Iran and touched off the West Asia conflict that drove global energy prices sharply higher. Reserves rose by $12.42 billion in the week ended 21 August alone, with FCNR(B) inflows of $65.4 billion accounting for most of the $72.85 billion that has entered India since three concessional swap windows opened on 8 June.

    What is driving reserves to a record, and what does the FCNR(B) window actually do?

    1. Scale of inflows: FCNR(B) deposits outstanding rose from $34.04 billion at the end of May to $65.4 billion by 21 August, since the window opened on 8 June, and reserves themselves jumped $12.42 billion in the week ended 21 August.
    2. Mechanism: Under the FCNR(B) scheme the central bank bears the full exchange rate risk on these non-resident deposits, since the money is held in foreign currency rather than converted into rupees, which let banks offer interest rates as high as 7.4 percent.
    3. Leveraged NRI participation: Non-resident Indians have also borrowed at lower interest rates abroad to deposit the proceeds into FCNR(B) accounts, earning returns of as much as 15 percent on the resulting spread.

    Why did reserves need rebuilding in the first place?

    1. The rupee was already under stress before the record: The rupee came under intense pressure from large foreign portfolio outflows, with $19 billion leaving Indian markets in 2025 and a further $24 billion in the first five months of 2026, pushing the currency to near 97 per dollar in mid-May.
    2. The West Asia conflict added an oil import shock: Since roughly 85 percent of India’s crude oil needs are met through imports, the conflict’s closure-driven spike in global energy prices raised the country’s import bill and added further pressure on the rupee just as reserves were near their earlier February high.
    3. The rupee remains down year-on-year despite the record reserves: The rupee closed at 95.39 per dollar on Friday, little changed from its 95.79 level on 4 June and still 8.1 percent weaker than a year earlier, showing the reserve build has stabilised rather than reversed the currency’s decline.

    What other measures accompanied the FCNR(B) window?

    1. Two additional swap windows: Announced alongside FCNR(B) on 5 June, swap facilities for Overseas Foreign Currency Borrowings and External Commercial Borrowings have together brought in $4.86 billion and $2.59 billion respectively since 8 June.
    2. Tax relief for foreign portfolio investors: The government removed capital gains and withholding taxes on foreign portfolio investment in government securities as part of the same package meant to pull in capital and support the rupee.
    3. An accelerated closure timeline: Because inflows arrived faster than expected, the RBI moved the FCNR(B) window’s closing date to 31 August, a month earlier than the originally announced 30 September deadline.

    Challenges to relying on FCNR(B)-driven reserve accumulation

    1. Weak currency response relative to precedent: The rupee has barely moved during this swap window, compared with the 2013 episode when the rupee rose 10.3 percent, from 67.6 to 61.3 per dollar, in the first 40 days after the RBI’s then-Governor introduced a similar FCNR(B) swap facility. Eg. The rupee moved from 95.79 to 95.39 per dollar between 4 June and 29 August this year, a fraction of the 2013 currency response to a comparable scheme. Fix. Pair reserve accumulation with structural measures that improve the current account, such as diversifying energy import sources, rather than treating swap-driven capital inflows alone as sufficient to support the currency.
    2. Reversal risk from leveraged hot money: A meaningful share of FCNR(B) inflows has been driven by non-resident Indians borrowing cheaply abroad to arbitrage into high-yield deposits, a flow that can reverse quickly once interest rate differentials narrow or the window closes. Eg. The window’s early closure on 31 August, a month ahead of schedule, was itself driven by inflows arriving faster than expected, which cuts both ways once the scheme ends and deposits mature. Fix. Stagger FCNR(B) maturities and monitor the redemption schedule closely to avoid a sudden reserve drawdown when large deposit tranches come due.

    Conclusion

    The FCNR(B) swap window has pushed India’s foreign exchange reserves past their previous February high to a record $729.33 billion, giving the Reserve Bank of India greater capacity to defend the rupee after a period of heavy foreign portfolio outflows and an oil price shock from the West Asia conflict. The rupee’s limited appreciation despite the record inflow, unlike the sharper rupee gains seen after the comparable 2013 swap window, signals the current build is cushioning rather than reversing currency pressure.

    Back2Basics: What are FCNR(B) deposits?

    1. FCNR(B) deposits are foreign currency accounts that non-resident Indians can hold with Indian banks, where the deposit and its returns stay denominated in the foreign currency rather than in rupees.
    2. The scheme shifts exchange rate risk onto the Reserve Bank of India rather than the depositor or the bank, which lets banks offer higher interest rates to attract inflows during periods of currency pressure.
    3. India last used a similar concessional FCNR(B) swap window in 2013, under then RBI Governor Raghuram Rajan, to stabilise the rupee following a sharp depreciation.

    Matching Previous Year Question

    No direct PYQ traced in the provided files (Pass 1: FCNR(B), forex reserves record — no match; Pass 2: balance of payments, current account — matches found were conceptually unrelated to a record reserves event).

  • FM: Closer India-Canada economic ties important amid global uncertainty

    FM: Closer India-Canada economic ties important amid global uncertainty

    Why in the News

    The Union Finance Minister has said closer economic cooperation between India and Canada carries greater significance amid a rapidly changing global landscape marked by geopolitical uncertainty, and called for stronger partnerships to build resilient, sustainable and inclusive economies. The remarks came after the inaugural India Canada Economic and Financial Dialogue, the first such dialogue between the two countries. The Finance Minister said the dialogue reflects a shared ambition to move beyond traditional trade in goods and services toward a deeper partnership covering investment, finance, capital markets and regulatory cooperation.

    What is the India Canada Economic and Financial Dialogue?

    1. About: It is a bilateral mechanism between the Indian and Canadian finance ministries to coordinate on macroeconomic policy, financial sector cooperation and multilateral economic issues, launched with its inaugural round.
    2. Scope of discussions: The inaugural round covered three areas, macroeconomic developments and domestic policy priorities in both countries, avenues for financial sector cooperation, and broader international and multilateral cooperation on shared interests.
    3. Anchored in a wider strategic goal: The Prime Minister and his Canadian counterpart have set an ambitious goal for strengthening bilateral ties, and the dialogue is meant to give that goal fresh momentum and direction.

    What case did the Finance Minister make for closer India Canada cooperation?

    1. Global uncertainty is the backdrop: The Finance Minister described the world as going through a profound transformation with constantly evolving geopolitical and economic realities, making resilient partnerships more important.
    2. India’s economy was presented as a stable partner: The Finance Minister highlighted India’s “remarkable macroeconomic resilience” and pointed to complementarities between the two economies as grounds for expanding investment and economic cooperation.

    What specific areas of financial cooperation did the two sides identify?

    1. Cross border payments and financial stability: The two sides explored cooperation on cross border payment systems and measures to safeguard financial stability.
    2. Fintech and capital markets: Discussions also covered cooperation in financial technology and capital markets, part of the plan to move beyond goods and services trade into deeper financial integration.

    Conclusion

    The inaugural dialogue has set out macroeconomic policy coordination, financial sector cooperation and multilateral engagement as its three working areas. No date has been set for the next round, but the framework is intended to carry forward the broader bilateral goal the Prime Minister and his Canadian counterpart have set for the relationship.

  • PSU banks more efficient than private peers: EAC-PM

    PSU banks more efficient than private peers: EAC-PM

    Why in the News

    A paper by two economists for the Economic Advisory Council to the Prime Minister (EAC-PM), a body that advises the Prime Minister on economic policy questions, found that public sector banks (PSBs) are more efficient than private and foreign banks.

    Titled “Reforms, Efficiency, and Productivity of Indian Banking Sector in the Last Decade: DEA Approach”, the paper used Data Envelopment Analysis (DEA), a method that measures how far a unit could shrink its inputs while producing the same output, to compare 47 banks.

    What does the study find?

    1. PSBs improved significantly: During 2014-15 to 2025-26, PSBs recorded average efficiency of 88.53%, compared with 85.62% for private banks. Foreign banks led over the full period: Foreign banks had the highest 12-year average of 88.98%, but their efficiency declined from 95.86% in 2014-15. Most efficient banks:
    2. HSBC and JPMorgan Chase: 100% efficiency in all 12 years.
    3. HDFC Bank: 97.54% average efficiency among private banks.
    4. State Bank of India (SBI): 97.49%, highest among PSBs.
    5. DBS Bank India: Lowest single-year efficiency of 40.12% in 2021-22, linked to its merger with Lakshmi Vilas Bank.
    6. Impact of PSB mergers: PSBs were relatively less efficient than private banks during FY2019 to FY2022, partly due to the merger and rationalisation of branches, employees and business operations.

    Data Envelopment Analysis (DEA)

    1. DEA is a method for measuring the relative efficiency of units, here banks, that produce the same kind of output from different combinations of inputs.
    2. An efficiency score below 100% means the unit could reduce its inputs by that shortfall and still produce the same output. Eg. A score of 85% means the unit could cut inputs by 15% without any loss of output.

    “[2024] Consider the following statements:
    Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.
    Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.
    Which one of the following is correct in respect of the above statements?
    (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
    (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
    (c) Statement-I is correct, but Statement-II is incorrect
    (d) Statement-I is incorrect, but Statement-II is correct

  • Russia turns to India to meet petrol demand after oil infra takes a hit in Ukraine strikes

    Russia turns to India to meet petrol demand after oil infra takes a hit in Ukraine strikes

    Why in the News

    Repeated Ukrainian strikes on Russian oil refineries, combined with routine maintenance, strong summer demand and logistical bottlenecks, have cut Russia’s domestic petrol supply. Russia imported over one million barrels of petrol from India, mainly from Nayara Energy’s Vadinar refinery, over June and July 2026, according to ship tracking data.

    What does the trade data show?

    1. Rising volumes over two months: Gasoline exports from India to Russia rose from about 12,000 barrels per day in June 2026 to about 21,000 barrels per day in July 2026, together close to a million barrels, with the trend reported to have continued into August.
    2. Vadinar as the main Indian source: Three cargoes of around 320,000 to 350,000 barrels each were shipped to Russia from the Vadinar refinery, which has significant Russian shareholding. Additional volumes may have reached Russia through ship-to-ship transfers and vessels with undeclared destinations.
    3. Belarus and Kazakhstan remain the largest suppliers: Most of Russia’s imported gasoline still comes from Belarus, where one of two refineries is 42% owned by a Russian consortium and processes only Russian crude. Kazakhstan is a net petrol importer itself and cannot supply large volumes.
    4. Russia has restricted its own exports to protect domestic supply: Moscow has curbed diesel exports ahead of winter and placed volume limits on petrol sold per vehicle at fuel stations in several regions, since its refining system produces a comfortable diesel surplus but only a thin petrol buffer over domestic demand.

    Why does this mark a reversal in the India-Russia energy relationship?

    1. India’s established role has been as buyer, not supplier: Russian crude, discounted after Western sanctions cut off Moscow’s traditional European buyers following its invasion of Ukraine, now makes up the largest share of India’s crude import basket.
    2. The new flow runs in the opposite direction: India is now supplying a refined product back to Russia, derived in part from the same Russian crude it imports, a flow that did not exist before June 2026.

    Petrol vs Diesel Situation

    Petrol

    • More vulnerable to supply disruptions.
    • Domestic refinery output normally only slightly exceeds demand.
    • Russia has:
      • Restricted exports.
      • Limited petrol supplies at some fuel stations.
      • Adjusted product specifications to protect domestic availability.

    Diesel

    • Russia is relatively better supplied.
    • Its refining system produces more diesel than domestic consumption requires.
    • Nevertheless, Russia has also restricted diesel exports to build a cushion before winter.

    Why is India Important?

    • India has substantial refining capacity and exportable petroleum products.
    • Indian refineries continue to receive large quantities of Russian crude oil.
    • Some petrol exported to Russia may therefore be produced from Russian crude refined in India.
    • This creates an increasingly complex two-way India-Russia energy relationship.

    Conclusion

    The shift shows India’s refining capacity, especially at plants processing discounted Russian crude, has become a swing supplier for Russia’s own domestic fuel shortfall. Whether the flow continues depends on how quickly Russia can repair refining capacity damaged by continuing strikes.

    “[2024] Consider the following statements:
    Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
    Statement-II: Venezuela has the world’s largest oil reserves.
    Which one of the following is correct in respect of the above statements?
    (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
    (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
    (c) Statement-I is correct, but Statement-II is incorrect
    (d) Statement-I is incorrect, but Statement-II is correct

  • Global space norms find a firm footing in India’s new re-entry rules

    Global space norms find a firm footing in India’s new re-entry rules

    Why in the News

    The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has released India’s first guidelines on planned re-entry, requiring any Indian entity undertaking such a re-entry to obtain its authorisation, whether the re-entry occurs within or outside Indian territory.

    What is a planned re-entry?

    1. The defining test is intent and survivability: Objects designed to survive re-entry, or intentionally controlled towards a particular landing or impact area, require separate authorisation. This is what makes a re-entry planned.
    2. What falls outside the definition: Objects expected to burn up, melt or fragment sufficiently during natural orbital decay do not count as a planned re-entry.
    3. Why the distinction carries regulatory weight: The category separates a return that must be assessed and cleared in advance from one that requires no clearance, so the definition determines the reach of the entire framework.

    Why has re-entry become a governance problem now?

    1. The historical baseline was negligible: For many decades there were few rocket launches and few new satellites in orbit each year, so there were also few re-entries.
    2. The consequences used to be trivial: Most of those re-entries simply burned up in the atmosphere with little consequence.
    3. The orbital population has changed: Low-earth orbit, the band of orbits closest to the earth where most satellites operate, now hosts several thousand satellites, with private companies planning for many more.
    4. Deliberate de-orbiting has become routine: Satellite operators are also deliberately bringing satellites down at the end of their operational lives as part of post-mission disposal, in great numbers.
    5. The physical risks are specific: A spacecraft returning to the earth has to negotiate many risks, including deviating from its planned path and breaking up into smaller pieces.
    6. The risks cross jurisdictions: A returning object may affect airspace and maritime zones, and may potentially crash in the territory or jurisdiction of another state, which makes re-entry a governance problem as well as a physics problem.

    What are the three important elements of the guidelines?

    1. Accountability: Any Indian entity undertaking a planned re-entry, whether within or outside Indian territory, now requires IN-SPACe authorisation.
    2. Foreign operators must route through an Indian entity: Non-Indian entities seeking to undertake planned re-entry over Indian territory must route the activity through an Indian-incorporated entity, such as a subsidiary, joint venture or partnership.
    3. The Indian entity carries the compliance duty: That Indian entity is responsible for complying with Indian laws, regulations and national security requirements.
    4. Why the accountability gap exists: Commercialisation separates ownership from consequence, since the spacecraft may belong to a private company and the effects of its return lie across maritime zones and jurisdictions. India has responded by attaching regulatory responsibility to a re-entering entity before the risk materialises.
    5. Risk must be acceptable: The expected casualty risk must remain below 1 in 10,000, supported by survivability and ground-casualty assessments.
    6. Failure scenarios must be modelled and shared: Operators have to analyse and share failure scenarios, fragmentation patterns, ballistic coefficients, de-orbit plans, flight-path angles and danger zones.
    7. Surviving and hazardous components must be identified: They must identify components likely to survive re-entry, and hazardous systems such as batteries and pressure vessels.
    8. A number makes sustainability measurable: By requiring quantitative studies and attaching a figure to the acceptable risk threshold, the guidelines make sustainability measurable and therefore trackable.
    9. Permissions: IN-SPACe will re-verify the latest re-entry parameters approximately three months before the proposed operation.
    10. A post-launch decision needs six months’ notice: If a planned re-entry is decided upon after launch, the operator must apply at least six months in advance.
    11. Airspace and maritime warnings at 45 days: Operators must obtain an IN-SPACe advisory note to issue warnings to airborne and marine vessels in the re-entry area at least 45 days before the re-entry begins.
    12. A foreign jurisdiction requires that state’s clearance: If a re-entry site falls within the territorial control of a non-Indian state, including its exclusive economic zone, the applicant must submit the relevant clearance or authorisation from that state.
    13. The checkpoints are intervention windows: These checkpoints give the regulator fixed windows and mechanisms to intervene when re-entry parameters change after the mission has launched, or when the risk pattern changes.

    What international framework do the guidelines translate?

    1. The development period: For nearly two decades the international community has developed principles for sustainable space activities.
    2. The two leading instruments: They are the Inter-Agency Space Debris Coordination Committee’s Space Debris Mitigation Guidelines, and the Guidelines for the Long-term Sustainability of Outer Space Activities of the United Nations Committee for the Peaceful Uses of Outer Space.
    3. The treaty foundation: Article IX of the Outer Space Treaty 1967 provides an important foundation for environmental responsibility in the conduct of space activities.
    4. The working definition of sustainability: The UN Guidelines define sustainability as maintaining space activities while preserving the outer space environment for future generations.
    5. The structural weakness of that architecture: Most of the contemporary sustainability architecture works on guidelines and other similar forms of soft law, which operators are not obligated to follow.
    6. How the national regulator closes it: The IN-SPACe guidelines solve this problem for India by tying an operator’s fragmentation analysis and insurance policies to the national regulator, which converts a voluntary standard into a condition of permission.

    How do the guidelines handle liability?

    1. The treaty position on liability: The Space Liability Convention 1972 places absolute liability on a launching state for damage caused by its space object on the surface of the earth, or to aircraft in flight.
    2. The state carries the claim, not the operator: Absolute liability means the launching state answers for the damage regardless of fault, so a private failure becomes a sovereign liability by default.
    3. The guidelines invert that internally: Operators must undertake planned re-entries at their own risk, and they remain liable for third-party damage and claims.
    4. Indemnity to the government: Operators indemnify the Government of India and its agencies for liability incurred under India’s international commitments.
    5. Insurance as the backing: Operators must satisfy the applicable third-party insurance requirements, so the indemnity is funded rather than merely promised.

    Challenges to the IN-SPACe planned re-entry guidelines

    1. The regulator has no statutory backing: IN-SPACe functions as the sector’s regulator without legislative authority, so its guidelines rest on executive policy rather than on an Act. Eg. India has no dedicated space activities legislation, and the Indian Space Policy 2023 is a policy document. Fix. Enact a space activities law placing authorisation, liability and penalties on a statutory footing.
    2. The regulator sits inside the body it regulates: IN-SPACe authorises activities of private companies and government entities including ISRO, and it operates under the Department of Space. Eg. The same department is both the policy custodian and the parent of the entity it must clear. Fix. Place IN-SPACe under an independent appointments and reporting structure, with appeals lying outside the Department of Space.
    3. No appellate route for a refused authorisation: An operator refused authorisation, or held to a risk finding it disputes, has no defined appeal forum. Eg. The guidelines fix a casualty risk threshold without naming any forum before which an operator may contest a risk finding. Fix. Constitute a space disputes appellate tribunal with technical members, on the model used for telecom and electricity regulation.
    4. Verification capacity lags the requirement: A casualty risk below 1 in 10,000 must be independently verifiable, and that requires tracking and modelling capability the regulator does not itself hold. Eg. Debris tracking rests on ISRO’s Project NETRA, which is oriented to collision avoidance rather than to re-entry survivability audit. Fix. Build an independent re-entry analysis cell with access to radar and optical tracking data, empanelling accredited third-party assessors.
    5. Insurance capacity is untested at Indian scale: Third-party space insurance is a thin market, and a small operator may be unable to price cover for a low-probability, high-consequence event. Eg. Indian space startups have grown from a handful to around 200, most of them without balance sheets that carry catastrophic risk. Fix. Create a graded liability cap with a government-backed pool above it, on the model used for civil nuclear liability.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3

  • China lands a rocket first stage for the first time with Zhuque-3

    Why in the News

    China has recovered the first stage of a rocket on land for the first time, using the reusable rocket Zhuque-3, which was launched on Wednesday morning. It is the country’s second rocket stage recovery overall, after a sea platform recovery in July, and the first to use deployable landing legs. State media described the result as a major breakthrough in the country’s reusable rocket technology.

    What is a reusable rocket?

    1. About: A reusable rocket is a launch vehicle whose stages are recovered intact after flight and flown again, instead of being discarded once the payload is delivered.
    2. Why it lowers cost: The first stage carries most of the engines and structure, so recovering it avoids rebuilding the most expensive part of the vehicle for every launch.
    3. How recovery works: The stage separates after boost, reorients, uses engine burns to slow its descent and lands vertically on a pad or on a sea platform.
    4. What landing legs add: Deployable landing legs stabilise the stage at touchdown on ground, which is why their first use is treated as a distinct technical milestone.

    What did the Zhuque-3 flight achieve?

    1. Launch and recovery: Zhuque-3 was launched on Wednesday morning and its first stage was recovered afterward.
    2. First on land: This marks China’s first successful recovery of a rocket first stage on land.
    3. Second overall: It is the second time the country has recovered a rocket stage, following a successful recovery on a sea platform in July.
    4. New hardware: The recovery marked China’s first use of deployable landing legs.
    5. Official assessment: The state news agency deemed the result a major breakthrough in the country’s reusable rocket technology.

    How does this compare with earlier recoveries?

    1. China’s July recovery: On 10 July, the first stage of a Long March-10B rocket separated from the second stage after lift off and returned to a platform at sea.
    2. The difference land makes: A sea platform recovery avoids overflight of populated areas, while a land recovery removes the need for a recovery vessel and shortens the turnaround.
    3. United States, SpaceX: SpaceX has been recovering rockets since 2015 and has driven down launch costs by reusing hardware that would otherwise be discarded after carrying satellites and other payloads toward space.
    4. United States, Blue Origin: Blue Origin has likewise been recovering boosters since 2015, establishing vertical landing as a repeatable rather than experimental technique.
    5. What the comparison shows: China is closing a capability gap that has stood for a decade, and the operator here is a private launch company rather than the state programme.

    Why does reusability decide launch economics?

    1. Cost per launch: Reuse spreads the cost of building a stage across several flights, which is the single largest lever on the price of access to orbit.
    2. Launch cadence: Recovery shortens the interval between flights, which matters for deploying large satellite constellations.
    3. The payload penalty: Propellant reserved for the landing burn and the mass of legs and grid fins reduce the payload the same vehicle can carry.
    4. The break even condition: Reuse pays only when the same stage flies many times, so refurbishment cost and inspection time determine whether the saving is real.
    5. Strategic consequence: Cheaper and more frequent launch capacity translates directly into faster deployment of communication, navigation and remote sensing assets.

    Conclusion

    Zhuque-3’s flight gives China its first land recovery of a rocket first stage and its second stage recovery in six weeks, after the Long March-10B sea platform recovery of 10 July. The flight also carried the country’s first use of deployable landing legs, which is the hardware element that makes routine ground landings possible. The state news agency has called it a major breakthrough in reusable rocket technology. The next measure of the achievement is whether the recovered stage is refurbished and reflown, since recovery without reflight does not deliver the cost saving that reusability exists to produce.

    “[2016] What is ‘Greased Lightning-10 (GL-10)’, recently in the news?

    (a) Electric plane tested by NASA

    (b) Solar-powered two-seater aircraft designed by Japan

    (c) Space observatory launched by China

    (d) Reusable rocket designed by ISRO

  • Vizhinjam International Seaport begins full-scale EXIM operations

    Why in the News

    Kerala’s Vizhinjam International Seaport began full scale export and import operations, moving India’s first dedicated deepwater transshipment terminal from handling mother ship calls to regular cargo work. The shift tests whether a domestic deepwater port can pull back the transshipment cargo that Colombo, Singapore and Salalah have historically handled for India.

    What is the Vizhinjam International Seaport?

    1. About: Vizhinjam is India’s first dedicated deepwater container transshipment port, located near Thiruvananthapuram on the southern tip of Kerala.
    2. Ownership model: It is developed on the landlord port model, with the Government of Kerala owning the asset and a private concessionaire building and operating the terminal.
    3. Concession: The concession agreement was signed in August 2015 for a period of 40 years, with provision for extension.
    4. Status in law: It is a non major port under the Government of Kerala, unlike the twelve major ports administered by the Union government.
    5. Automation: It is India’s first port to use a fully automated container handling system with remotely operated ship to shore cranes.
    6. Operational milestones: The first mother ship called in July 2024, commercial operations began in December 2024, and the port was formally dedicated in May 2025.

    What is transshipment?

    1. About: Transshipment is the transfer of containers from one vessel to another at an intermediate port before they reach their final destination.
    2. Why it exists: Very large mainline vessels call only at a few deep draft hubs, and smaller feeder vessels then distribute the boxes to shallower regional ports.
    3. The commercial value: The hub port earns handling charges twice on the same container, once on discharge from the mother vessel and once on loading to the feeder.

    What is natural draft and why does it matter?

    1. About: Draft is the depth of water a vessel needs beneath its keel, and natural draft is the depth a harbour has without dredging.
    2. Vizhinjam’s advantage: The site has a natural depth of about 20 metres close to the shore, deep enough to take the largest container vessels in service.
    3. The cost effect: A naturally deep harbour avoids the recurring capital and maintenance dredging bill that shallow Indian ports carry every year.
    4. The sedimentation factor: The site has minimal littoral drift, so the channel does not silt up at the rate seen at river mouth ports.

    What is Viability Gap Funding?

    1. About: Viability Gap Funding is a one time or deferred grant given by the government to a public private partnership project that is economically justified but not commercially viable on its own.
    2. Use here: Central and State assistance under this route covered part of the capital cost of the first phase of the port.

    Why has India depended on foreign transshipment hubs?

    1. Scale of leakage: A large majority of India’s transshipment containers have historically been handled outside the country.
    2. The dominant hub: Colombo in Sri Lanka has handled the single largest share of India’s transshipped boxes, aided by its position on the same shipping lane.
    3. Other hubs: Singapore and Salalah in Oman handle much of the remainder, along with Port Klang in Malaysia.
    4. The reason: Indian ports lacked the natural draft and the crane capacity to receive the largest mainline vessels, so mother ships called at neighbouring hubs instead.
    5. The cost: Routing a container through a foreign hub adds an extra handling charge and transit time on every box, and the associated revenue leaves the country.
    6. The strategic exposure: Dependence on a foreign port for the movement of national trade is a vulnerability during a diplomatic or economic dispute.

    What makes the Vizhinjam site suitable for a hub?

    1. Proximity to the shipping lane: The port lies about 10 nautical miles from the international east and west shipping route linking the Suez Canal to the Strait of Malacca.
    2. Minimal deviation cost: A short deviation from the mainline route means a mother ship loses little time by calling, which is the decisive commercial factor for a hub.
    3. Deep water close to shore: The natural draft of about 20 metres is available near the coast, which shortens the approach channel.
    4. Low maintenance dredging: Limited sedimentation keeps the recurring dredging requirement low compared with other Indian container ports.
    5. Southern position: Its location at the southern tip of the peninsula makes it the natural first and last Indian call on the route.

    What does the move to full scale export and import operations add?

    1. From transshipment to trade: The port moves from handling mother ship calls and transfers to handling India’s own export and import containers.
    2. Direct connectivity for shippers: Exporters in Kerala and neighbouring States can load on a mainline vessel without an intermediate feeder leg through a foreign hub.
    3. Time and cost saving: Removing a feeder leg cuts transit days and one round of handling charges from the door to door cost.
    4. Revenue retention: Handling charges, customs revenue and ancillary services are retained domestically rather than paid to a foreign hub operator.
    5. Feeder network effect: Regular export and import volume gives the port a base load that makes it more attractive for shipping lines to add services.
    6. Economic linkage: Full operations activate customs, warehousing, logistics and bunkering activity in the port’s hinterland.

    Challenges to the Vizhinjam International Seaport

    1. Hinterland connectivity: A hub needs rail and road links to move export and import cargo inland at scale. e.g. the dedicated rail link and the road connectivity to the national highway network for Vizhinjam are still being completed.
    2. Competition from an established hub: Shipping lines change hub calls only when the switch is commercially compelling. e.g. Colombo has long established feeder networks, bunkering and repair services that a new port must match.
    3. Fisher community livelihood: Port construction alters the coastline and affects traditional fishing grounds. e.g. the Vizhinjam project faced sustained protests by the local fishing community over shoreline erosion and loss of fishing access.
    4. Coastal erosion and shoreline change: Breakwaters interrupt the natural movement of sand along the coast. e.g. erosion at nearby Kerala coastal settlements has been attributed by residents to the breakwater and has required protective works.
    5. Concentration risk in a single operator: Container handling capacity concentrated with one private group reduces competitive pressure on tariffs. e.g. a single group already operates a large share of India’s private container terminal capacity.
    6. Cyclone and monsoon exposure: The Arabian Sea coast faces intensifying cyclonic activity that halts port operations. e.g. Cyclone Ockhi in 2017 caused heavy loss of life among fishers off the Kerala and Tamil Nadu coast.
    7. Capacity ramp up risk: Later phases depend on demand materialising at the pace assumed in the concession. e.g. the full build capacity target depends on winning transshipment volume currently committed to competing hubs.

    Conclusion

    India has for decades paid a foreign hub to handle its own transshipment containers, and Vizhinjam is the first Indian facility with the natural draft and route position to change that. The port has now moved from the transshipment calls it began with in December 2024 to full scale export and import operations from 18 August 2026, which gives it a domestic cargo base alongside transfer volumes. The next milestone is the completion of the later development phases and the dedicated rail and road connectivity that will decide whether the hinterland can feed the quay.

    Ports and Maritime Sector in India

    1. About: India’s port system handles the overwhelming share of the country’s external trade, moving bulk, break bulk, liquid and containerised cargo.
    2. Trade dependence: Around 95 per cent of India’s trade by volume and about 70 per cent by value moves through sea ports.
    3. Port structure: India has 12 major ports administered by the Union government and around 200 notified non major ports under State governments.
    4. Coastline: India has a coastline of about 11,098 kilometres across nine coastal States and four Union Territories, with an exclusive economic zone of about 2.37 million square kilometres.
    5. Location advantage: The peninsula sits astride the east and west shipping lane connecting the Suez Canal to the Strait of Malacca, through which a large share of world trade passes.
    6. Structural weakness: Indian ports have historically lacked deep draft berths, so mainline vessels called at foreign hubs and Indian ports were served by feeders.
    7. Institutional structure: The Ministry of Ports, Shipping and Waterways administers the sector, with State Maritime Boards governing non major ports.

    Constitutional Framework Governing Ports

    1. Entry 27 of the Union List: Covers ports declared by or under law made by Parliament to be major ports, including their delimitation and the powers of port authorities there.
    2. Entry 25 of the Union List: Covers maritime shipping and navigation, and provision of education and training for the merchant marine.
    3. Entry 31 of the Concurrent List: Covers ports other than those declared to be major ports, the basis of State jurisdiction over ports such as Vizhinjam.
    4. Entry 32 of the Concurrent List: Covers shipping and navigation on inland waterways as regards mechanically propelled vessels.
    5. Article 297: Vests in the Union all lands, minerals and other things of value underlying the territorial waters, continental shelf and exclusive economic zone.
    6. Entry 41 of the Union List: Covers trade and commerce with foreign countries and import and export across customs frontiers.

    Laws and Rules Governing Ports and Shipping

    1. Indian Ports Act, 1908: The long standing statute governing port limits, port dues, pilotage and safety of shipping at ports.
    2. Indian Ports Act, 2025: Enacted to replace the 1908 statute, updating port administration, State Maritime Boards, pollution control and dispute resolution.
    3. Major Port Authorities Act, 2021: Replaced the Major Port Trusts Act, 1963 and gave the twelve major ports autonomy in tariff setting and land management through Port Authority Boards.
    4. Tariff autonomy: The Act removed tariff fixation from the Tariff Authority for Major Ports for new projects, allowing market based rates.
    5. Merchant Shipping Act, 1958: Governs registration of Indian vessels, seafarer welfare, safety and marine pollution obligations.
    6. Customs Act, 1962: Governs clearance of imported and exported goods and the designation of customs ports and bonded warehouses.
    7. Marine Aids to Navigation Act, 2021: Replaced the Lighthouse Act, 1927 and modernised the framework for navigational aids and vessel traffic services.
    8. Coastal Regulation Zone Notification, 2019: Issued under the Environment (Protection) Act, 1986, regulating construction and port development along the coast.
    9. Inland Vessels Act, 2021: Provides a uniform national regime for registration and safe operation of inland vessels, relevant to port hinterland movement by waterway.

    Back2Basics: Sagarmala Programme

    1. Administering ministry: Ministry of Ports, Shipping and Waterways.
    2. Launch year: Approved in 2015 as the flagship programme for port led development.
    3. Aim: To reduce the logistics cost of export and import and domestic cargo by using India’s coastline and inland waterways more intensively.
    4. The four pillars: Port modernisation and new port development, port connectivity enhancement, port linked industrialisation, and coastal community development.
    5. Targeted beneficiaries: Exporters and importers, coastal shipping operators, port linked industrial clusters and coastal communities including fishers.
    6. Design feature: Projects are implemented by ports, State governments, central ministries and special purpose vehicles, with the Sagarmala Development Company providing funding support.
    7. Coastal community component: Funds fishing harbours, fish landing centres and skill development for coastal populations.

    Government Initiatives in the Maritime Sector

    1. Maritime India Vision 2030: Sets out the ten year blueprint for port capacity, connectivity, shipbuilding and inland waterways.
    2. Maritime Amrit Kaal Vision 2047: Extends the roadmap to 2047 with targets for port capacity, transshipment share and green shipping.
    3. PM Gati Shakti National Master Plan: Integrates port, rail, road and waterway projects on a common geographic platform to remove last mile connectivity gaps.
    4. Harit Sagar Green Port Guidelines: Set targets for reducing carbon intensity at ports, including shore power and alternative fuel bunkering.
    5. Maritime Development Fund: Announced to provide long term low cost finance for shipbuilding, ship acquisition and port infrastructure.
    6. Shipbuilding Financial Assistance Policy: Provides assistance to Indian shipyards to compete with subsidised foreign shipbuilders.
    7. Cabotage relaxation: Allows foreign flagged vessels to carry transshipment containers between Indian ports, a measure intended to make Indian hub ports viable.
    8. Jalvahak Scheme and National Waterways development: Encourages cargo movement on inland waterways to reduce road congestion to and from ports.

    Key Facts about Vizhinjam and India’s Ports

    1. First of its kind: Vizhinjam is India’s first dedicated deepwater container transshipment port and its first semi automated container terminal.
    2. Location: Thiruvananthapuram district, Kerala, on the Arabian Sea coast near the southern tip of the Indian peninsula.
    3. Natural draft: About 20 metres close to shore, among the deepest at any Indian port.
    4. Distance from the shipping lane: About 10 nautical miles from the international east and west shipping route.
    5. Concession model: Landlord model public private partnership with the Government of Kerala, signed in 2015 for 40 years.
    6. Major ports: India’s twelve major ports include Deendayal (Kandla), Mumbai, Jawaharlal Nehru, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (Ennore), V.O. Chidambaranar (Tuticorin), Visakhapatnam, Paradip and Syama Prasad Mookerjee (Kolkata).
    7. Busiest container port: Jawaharlal Nehru Port in Maharashtra handles the largest container volume among Indian ports.
    8. Newest major port: Vadhavan in Maharashtra was approved as a deepwater major port to add mainline capacity on the west coast.

    Challenges in India’s Port and Maritime Sector

    1. Transshipment leakage: A large share of India’s container transshipment is still handled at foreign hubs. e.g. Colombo has historically handled the biggest single share of India’s transshipped boxes.
    2. Hinterland connectivity gaps: Rail and road links to ports lag behind quay side capacity. e.g. dedicated freight corridor connectivity reached some ports years after their capacity expansion was complete.
    3. Low draft at legacy ports: Older river and estuary ports cannot take the largest vessels without continuous dredging. e.g. Kolkata port requires sustained maintenance dredging on the Hooghly to keep its channel usable.
    4. Turnaround time and dwell time: Container dwell time at Indian ports remains higher than at competing hubs. e.g. Indian container dwell time has been benchmarked unfavourably against Singapore and Colombo in trade facilitation assessments.
    5. Small national fleet: Indian flagged tonnage carries only a small share of the country’s own trade, so freight payments go abroad. e.g. Indian ships carry a small fraction of India’s export and import cargo, with the rest on foreign flagged vessels.
    6. Weak shipbuilding base: India holds a marginal share of global shipbuilding orders. e.g. global shipbuilding is dominated by China, South Korea and Japan, which together hold the overwhelming majority of the order book.
    7. Coastal environment and livelihood conflict: Port expansion collides with fishing livelihoods and coastal ecology. e.g. the Vizhinjam project saw prolonged protests over erosion and loss of fishing grounds.
    8. Climate and disaster exposure: Ports are exposed to cyclones, storm surge and sea level rise. e.g. Cyclone Fani and Cyclone Amphan forced extended shutdowns at east coast ports.

    Way Forward

    1. Complete port connectivity projects on schedule: Finish the dedicated rail spur and highway links so hinterland cargo can reach the quay without road congestion.
    2. Consolidate transshipment volume: Use cabotage relaxation, competitive tariffs and customs facilitation to make an Indian hub call cheaper than a Colombo call.
    3. Invest in feeder shipping capacity: Build an Indian flagged feeder fleet so the distribution leg of transshipment is also domestically earned.
    4. Institutionalise coastal community compensation: Provide time bound rehabilitation, alternative livelihood and shoreline protection commitments as part of every port concession.
    5. Monitor shoreline change scientifically: Mandate independent long term shoreline and sediment monitoring around breakwaters, with published results.
    6. Diversify operators: Encourage more than one terminal operator across the national container network to keep tariffs competitive.
    7. Green the port: Deploy shore power, alternative fuel bunkering and electrified handling equipment in line with the green port guidelines.
    8. Digitise clearance: Extend single window clearance and port community systems to cut dwell time to the levels prevailing at competing hubs.

    Matching Previous Year Question

    “[2026] In what way(s) does the Vizhinjam International Seaport represent a structural shift in India’s maritime trade and logistics policy?
    1. By functioning exclusively as a domestic cargo hub to reduce reliance on coastal shipping and eliminate the need for foreign collaborations.
    2. By focusing primarily on passenger cruise tourism and heritage shipping to increase Kerala’s profile as a maritime heritage destination.
    3. By leveraging its natural deep draft and strategic location to reduce dependence on foreign trans-shipment ports, enhance revenue retention, and reposition India in regional maritime trade.
    Select the answer using the code given below:
    (a) 1 only
    (b) 1 and 2
    (c) 2 and 3
    (d) 3 only
    Answer: (d)”