In News:

The Ministry of Road Transport and Highways has released the Motor Vehicle Aggregator Guidelines (MVAG), 2025, updating the 2020 norms to accommodate evolving urban transport trends — including bike taxis, electric vehicles (EVs), and app-based autorickshaws.

Overview

• Legal Basis: Formulated under the Motor Vehicles Act, 1988, MVAG provides the regulatory foundation for digital ride-hailing platforms such as Ola, Uber, and Rapido.
• Issuing Authority: Ministry of Road Transport and Highways, Government of India

Key Provisions of MVAG 2025

Driver Welfare and Remuneration

• Revenue Sharing:
  • Drivers using own vehicles must receive minimum 80% of the fare.
  • For aggregator-owned vehicles, the share must be at least 60%.
• Insurance Requirements:
  • Health cover of ?5 lakh
  • Term life insurance of ?10 lakh for each driver
• Skill Enhancement: Drivers in the lowest 5% rating bracket to undergo quarterly training

Passenger Safety and Accountability

• Travel Insurance: Mandatory coverage of ?5 lakh per passenger
• Complaint Resolution:
  • Issues must be addressed within 3 working days
  • Aggregators must notify passengers of outcomes
• Fare Transparency: Charges apply only from pick-up to drop-off location

Fare Regulation and Surge Pricing

• Base Fare Governance: State governments to decide base fare for each vehicle type
• Dynamic Pricing Limits:
  • Aggregators may charge as low as 50% below base fare or up to 2x the base fare cap
  • Designed to curb excessive surge pricing and ensure fare predictability

Cancellation Penalties

• Symmetrical Accountability:
  • 10% penalty (capped at ?100) for riders or drivers cancelling without valid reason
  • Acceptable cancellation grounds must be clearly listed on platforms

Legitimisation of Bike Taxis

• Policy Recognition:
  • For the first time, private two-wheelers (non-transport motorcycles) may be used for commercial ride services, pending state-level approval
  • Legal clarity for platforms operating in regulatory grey zones

EV Integration and Inclusivity

• EV Adoption Targets: States may enforce annual targets for aggregator fleets to switch to electric vehicles
• Accessible Vehicles Mandate: Aggregators must include vehicles equipped to serve persons with disabilities (Divyangjan)

Enhanced Driver Onboarding Standards

• Screening and Health Protocols: Mandatory police verification, medical fitness, and psychological evaluation before onboarding
• Training Mandates: Induction training for new drivers and annual refresher programs for all

Grievance Redressal & Licensing

• Mandatory Officer Appointment: A Grievance Redressal Officer must be designated with contact details published on the platform
• Centralised Licensing Portal: A unified digital portal to streamline aggregator licensing, renewals, and deposit management

Enforcement and Penalties

• Penalty Range: Fines for non-compliance range from ?1 lakh to ?1 crore
• Escalation for Repeat Offences: Repeat violations can lead to license suspension (up to 3 months) and possible revocation

Significance of MVAG 2025

• Aligns India’s mobility ecosystem with sustainable transport goals, passenger safety, and driver welfare
• Encourages EV transition, inclusive access, and regulated digital transport economy
• Brings regulatory clarity for emerging services like bike taxis

In News:

In a move aimed at enhancing fair lending practices and improving access to affordable credit, the Reserve Bank of India (RBI) has prohibited pre-payment penalties on floating-rate loans availed by individuals and Micro and Small Enterprises (MSEs). The new norms will come into effect from January 1, 2026, and will apply to all loans and credit facilities sanctioned or renewed on or after this date.

Key Provisions of the RBI Guidelines

Ban on Pre-Payment Charges:

• Applicable to:
  • Individuals taking floating-rate loans for non-business purposes, even with co-borrowers.
    • Individuals and MSEs availing business loans.
• Lenders prohibited from imposing pre-payment penalties include:
  • Commercial Banks (except SFBs, RRBs, Local Area Banks)
  • Tier 4 Urban Cooperative Banks
  • NBFCs in the Upper Layer (NBFC-UL)
  • All India Financial Institutions (AIFIs)
• For smaller institutions like Small Finance Banks, RRBs, Tier 3 Urban Cooperative Banks, State and Central Co-op Banks, and NBFCs in the Middle Layer (NBFC-ML), the exemption from pre-payment charges applies to loans up to ?50 lakh.

Early Closure of Overdraft/Cash Credit:

• If the borrower informs in advance and closes the account on time, no pre-closure charges can be levied.
• If the lender requests prepayment, no charges are permitted in such cases either.

Transparency and Disclosure Requirements

• Lenders must clearly disclose the applicability or non-applicability of pre-payment charges in:
  • Sanction letters
  • Loan agreements
  • Key Facts Statement (KFS) (where applicable)
• Any charges not explicitly disclosed as per these guidelines cannot be imposed.

Pre-Payment Without Lock-in

• Pre-payment (partial or full) can be made without any lock-in period, and irrespective of the source of funds.

Rationale Behind the Move

• The RBI noted that inconsistent practices regarding pre-payment fees have led to customer disputes.
• Ensuring easy and affordable finance for MSEs is “of paramount importance,” the central bank emphasized.

Policy Continuity and Legal Update

• All earlier RBI circulars and guidelines regarding pre-payment charges stand repealed.
• The final guidelines were issued after considering public feedback on the draft circular (February 2025).

Significance for MSEs and Borrowers

• Enhances credit mobility and refinancing freedom for borrowers.
• Prevents penalty-driven disincentives for early loan closure.
• Aligns with the RBI’s broader goal of financial consumer protection and MSME support.

In News:

During his official visit to Trinidad and Tobago, the Prime Minister of India announced a significant policy update: Indian-origin persons up to the sixth generation residing in Trinidad and Tobago will now be eligible for the Overseas Citizen of India (OCI) card.

This move strengthens India's outreach to its diaspora, especially in regions with deep-rooted historical ties dating back to indentured migration.

About Overseas Citizen of India (OCI)

What is OCI?

The OCI card is a form of permanent residency granted to foreign nationals of Indian origin, enabling them to live, work, and travel in India without requiring a visa.

• Introduced: August 2005
• Legal Basis: Citizenship (Amendment) Act, 2005
• Administered by: Ministry of Home Affairs, Government of India
• Objective: To foster long-term engagement between India and its diaspora communities by offering them residency and economic/cultural participation rights—without conferring dual citizenship.

Eligibility Criteria (Section 7A of Citizenship Act, 1955)

An individual is eligible if they are a foreign national who:

• Was a citizen of India on or after 26 January 1950,
• Was eligible for Indian citizenship on that date, or
• Belonged to a territory that became part of India after 15 August 1947

Also eligible:

• Children, grandchildren, or great-grandchildren of eligible persons
• Minor children with one or both parents as Indian citizens
• Spouses of Indian citizens or OCI holders, if marriage has lasted 2+ years

Not eligible if: The individual or their ancestors were ever citizens of Pakistan, Bangladesh, or other countries notified by the Indian government

Key Features of the OCI Card

• Lifelong, multiple-entry visa to India
• No police reporting required, regardless of duration of stay
• Work and study rights similar to Indian citizens (no separate visa needed)
• Economic parity with NRIs in areas such as:
  • Education (e.g., admissions, fee structure)
  • Financial services and bank accounts
  • Real estate (excluding agricultural land)
• Can buy residential and commercial property in India
• Not eligible for:
  • Voting rights
  • Holding constitutional posts (e.g., President, MP, Judge)
  • Government employment
• Digital-friendly: Application, renewal, and status tracking available via the official OCI Portal

Significance of the Latest Announcement

• Extending OCI eligibility to the sixth generation acknowledges the deep historical diaspora links between India and the Caribbean, particularly descendants of indentured laborers.
• This strengthens India's soft power, promotes people-to-people diplomacy, and enhances economic and cultural ties with Indian-origin communities abroad.

In News:

India’s first healthcare facility entirely led and managed by transgender individuals — formerly known as Mitr Clinic — has reopened in Hyderabad under a new name, Sabrang Clinic, after a brief closure in January 2025 due to a USAID funding freeze.

Launched in 2021 in Narayanguda, Mitr Clinic was a pioneering initiative providing trans-affirmative healthcare services, and was notable for being completely staffed by members of the transgender community. Over 3,000 patients were served during its initial phase.

Revival and Funding

• Funding Setback: Operations were suspended in January 2025 following the withdrawal of USAID support.
• Renewed Support: The clinic resumed services in May 2025 after securing three-year funding from Tata Trusts, at a rate of ?1,500 per person per year (compared to ?1,900 under USAID).
• Supporting Partners: Core clinical staff is now funded by Tata Trusts, while senior positions are jointly supported by YRG Care, an NGO associated with the earlier model.

Current Setup and Services

Services Offered:

• General health services
• Counselling and clinical consultations for:
  • Hormone Replacement Therapy (HRT)
  • Gender Affirmation Surgeries
  • Breast Augmentation
  • Mental Health
• HIV/STI testing and treatment
• Psychological support

Clinic Team:

• 1 Medical Officer
• 1 Nurse
• 1 Counsellor
• 2 Outreach Workers

Operating Hours: Monday to Saturday, 10 a.m. – 6 p.m.

During the shutdown, the team continued online consultations and medicine delivery, sustaining community outreach until new funding was secured.

Legacy and Policy Impact

• The Telangana Government, inspired by Mitr Clinic’s model, launched Maitri Clinics in all 33 districts, adopting a trans-inclusive healthcare approach.
• While collaboration with State agencies was considered, the Sabrang team opted for independent operation to ensure quicker service resumption and retain community trust.

Expanded Vision: Why ‘Sabrang’?

• The new name, Sabrang (meaning "all colours"), reflects a broader, inclusive healthcare mission.
• It now aims to serve not only transgender persons but also queer, gender-diverse, and other marginalized groups who face similar healthcare barriers.

In News:

NITI Aayog has released a comprehensive report envisioning India’s transformation into a global chemical manufacturing hub with a projected 12% share in global value chains (GVCs) and USD 1 trillion in output by 2040.

Current Landscape of India’s Chemical Industry

• Significant Economic Contributor: India is the 6th largest chemical producer globally and 3rd in Asia, contributing over 7% to manufacturing GDP. Key linkages: Pharmaceuticals, textiles, agriculture, and construction.
• Fragmented Sector Structure: Dominated by MSMEs, the sector suffers from lack of integrated value chains and modern infrastructure. Example: Cluster-based growth is concentrated in Gujarat, Maharashtra, and Tamil Nadu.
• Low Global Integration: India’s 3.5% share in global chemical value chains reflects weak backward integration and poor export competitiveness. The trade deficit in 2023 was USD 31 billion.
• High Import Dependence: Heavy reliance on China and Gulf countries for feedstocks and specialty chemicals. Example: Over 60% of critical Active Pharmaceutical Ingredients (APIs) are sourced from China.
• Negligible R&D Investment: India invests only 0.7% of industry revenue in R&D, far below the global average of 2.3%, limiting innovation in green and specialty chemicals.
• Regulatory and Procedural Hurdles: Environmental clearance (EC) delays (up to 12–18 months) and procedural bottlenecks lead to cost and time overruns.
• Skilling Deficit:
  A 30% shortage of skilled professionals in green chemistry, process safety, and nanotechnology. Example: ITIs and vocational programs lag behind industry requirements.

Emerging Opportunities

• Green Chemistry Revolution: Global shift toward sustainable chemicals presents new market opportunities.
• Geopolitical Realignment: Rising distrust of China globally enables India to emerge as an alternate supplier.
• FTA Leverage: India’s Free Trade Agreements (FTAs) with UAE, EU, and ASEAN can enhance tariff-free access to major markets.
• Make in India Ecosystem: Policy support through PLI schemes, Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs), and chemical parks.
• Job Creation Potential: The sector could generate 7 lakh skilled jobs by 2030, particularly in petrochemicals, research, and logistics.

Persistent Challenges

• Feedstock Vulnerability: Over-dependence on crude oil and naphtha imports poses price and supply risks.
• Outdated Industrial Clusters: Legacy clusters lack modern safety systems, storage infrastructure, and waste treatment facilities.
• High Logistics Costs: Freight costs are 2–3 times higher than global averages, reducing export competitiveness.
• Regulatory Complexities: Absence of single-window clearances, frequent policy shifts, and inter-state inconsistencies deter investments.
• Weak Industry-Academia Linkages: Poor collaboration leads to low patent output and limited skill development.

NITI Aayog’s Recommendations

• Develop World-Class Chemical Hubs: Upgrade existing clusters and establish empowered committees. Suggested hubs: Paradeep, Dahej, Vizag. Introduce a dedicated Chemical Infrastructure Fund.
• Opex-Based Incentives: Offer operational subsidies linked to import substitution and export potential.
• Boost Technology Access & R&D:
  • Establish an industry-academia interface under the Department of Science and Technology (DST).
  • Enable technology transfer from global MNCs.
• Streamline Environmental Clearances:
  • Simplify processes via DPIIT audit mechanisms.
  • Ensure greater transparency and faster approvals.
• Strengthen Skill Development:
  • Expand and modernize ITIs and specialized institutes.
  • Introduce tailored courses in polymer science, green chemistry, and process safety.
• Negotiate Chemical-Specific FTAs:
  • Incorporate product-specific clauses.
  • Simplify rules of origin and documentation processes.