In News:

The Udhampur-Srinagar-Baramulla Rail Link (USBRL) is a transformative 272-km railway project aimed at connecting the Kashmir Valley to the Indian Railways network. With Prime Minister Narendra Modi inaugurating the Chenab Rail Bridge and flagging off Vande Bharat trains in June 2025, the project nears full operationalization.

Key Details:

Chenab Rail Bridge – World’s Highest Railway Arch Bridge

• Height: 359 metres above riverbed (taller than the Eiffel Tower).
• Length: 1,315 metres; Arch span: 467 metres.
• Status: Highest railway arch bridge in the world.
• Engineering feat in Reasi district, Jammu and Kashmir.

Strategic All-Weather Connectivity

• Reduces dependency on the Srinagar-Jammu highway, which is prone to closure due to snow and landslides.
• Ensures year-round transportation and supply lines.

Enhanced Military Mobility

• Enables rapid movement of troops and equipment to border regions.
• Crucial for national security due to the region's proximity to international borders.
• Designed to withstand blasts and harsh weather.

Anji Bridge – India’s First Cable-Stayed Rail Bridge

• Length: 473 metres; Height: 331 metres.
• Located on the Katra-Banihal section.
• Supported by 48 cables, suitable for rugged Himalayan terrain.

Vande Bharat Connectivity

• High-speed trains introduced on Katra–Srinagar route.
• Improves passenger comfort and reduces travel time.

Economic Boost via Trade

• Improves market access for Kashmiri products: apples, saffron, handicrafts, and dry fruits.
• Facilitates faster freight movement, integrating the region into national trade networks.

Tourism Promotion

• Easier access to religious and scenic sites.
• Expected to boost tourism post disruptions (e.g., Pahalgam incident).
• Cheaper and faster rail travel enhances domestic footfall.

Engineering Resilience

• Chenab Bridge:
  • Blast-resistant (withstands up to 40 kg TNT).
  • Wind resistant (up to 260 kmph).
  • Seismic-resilient with a 120-year design life.
• Symbol of India’s capability in building infrastructure in high-risk zones.

Time Efficiency

• Travel time between Jammu and Srinagar will reduce from 6 hours (by road) to 3–3.5 hours (by rail).
• Facilitates emergency services, logistics, and routine travel.

National Integration and Inclusion

• 943 bridges, 36 tunnels covering 119 km — overcoming Himalayan terrain challenges.
• Integrates remote districts of Jammu & Kashmir into India's railway grid.
• Promotes inclusive development and better governance outreach.

In News:

In an effort to streamline and accelerate investments in India’s agriculture and allied sectors, the Government of India has launched the Krishi Nivesh Portal, developed by the Ministry of Agriculture & Farmers Welfare.

The initiative aligns with the government’s broader goal of promoting the ease of doing business in agriculture by integrating schemes from multiple Central ministries and State governments into a single digital platform.

Key Features of the Portal

• One-Stop Solution: The portal acts as a centralized hub providing real-time access to information on agricultural schemes from various government departments and ministries.
• Multi-Stakeholder Access: It is designed to cater to farmers, entrepreneurs, Farmer Producer Organizations (FPOs), industries, and agri-startups.
• Scheme Integration: As of now, the portal integrates 17 flagship schemes spanning seven Union Ministries, including:
  • Agriculture Infrastructure Fund
  • Animal Husbandry Infrastructure Development Fund
  • PM KisanSampada Yojana
  • PM-KUSUM
• Technological Features: It offers a user-friendly interface, chatbot support, and interactive dashboards for data-driven insights and monitoring.
• Investment Tracking: Users can track application status, explore investment opportunities based on geographical spread, and gain assistance with loan disbursal.

Institutional Integration

• Currently, 14 Union ministries/departments and 9 state government departments are involved in implementing schemes related to agriculture and allied sectors.
• Ministries already integrated include:
  • Ministry of Agriculture
  • Ministry of Food Processing Industries
  • Ministry of Rural Development
  • Ministry of Jal Shakti
  • Ministry of New and Renewable Energy
  • Ministry of Fertilisers

Efforts are underway to onboard over 300 schemes from various ministries and states, including those related to credit-linked initiatives, PPP models, venture capital projects, and startups.

Significance for Agricultural Sector

• The portal addresses key challenges such as fragmented scheme information, siloed departmental operations, and delays in loan processing.
• It aims to unlock the investment potential of India’s agri-sector, especially for private investors, by offering a consolidated, transparent, and accessible interface.
• According to official estimates:
  • The revised budget allocation for FY 2024–25 for agricultural investment schemes stands at ?1.31 lakh crore.
  • In FY 2021–22, private sector investment in agriculture amounted to ?2.79 lakh crore.

In News:

To meet its climate commitments under the Paris Agreement, India is moving towards a market-based mechanism for emissions reduction through the Carbon Credit Trading Scheme (CCTS), 2023. The scheme was made possible by amending the Energy Conservation Act, 2021 and replaces the Perform, Achieve, and Trade (PAT) scheme operational since 2012.

What is the Carbon Credit Trading Scheme (CCTS)?

• CCTS is India’s version of an emissions trading system (ETS) designed to reduce greenhouse gas (GHG) emissions intensity — emissions per unit of output — rather than absolute emissions.
• It introduces Carbon Credit Certificates (CCC), each representing one tonne of CO? equivalent (tCO?e) reduction.
• Managed by the Bureau of Energy Efficiency (BEE) and coordinated by a National Steering Committee, the scheme involves various regulatory bodies including electricity exchanges, MoEFCC, and the Central Electricity Regulatory Commission.

Key Features of the CCTS

Aspect                                                             Description

Transition from PAT             -           Shifts focus from energy efficiency (PAT) to emission intensity (CCTS).

Coverage                                     -            Initially targets energy-intensive sectors: Iron & Steel, Cement, Aluminium,

                                                            Fertilisers, Refineries, Pulp & Paper, and Textiles (~16% of national

                                                            GHG emissions). Power sector (~40%) may be included later.

Dual Mechanisms                 -             1. Compliance: Mandates targets for large emitters. 2. Offset:

                                                             Voluntary participants earn credits by reducing emissions.

Implementation Timeline        -     Expected to launch fully by mid-2026, in a phased manner.

Global Context of Carbon Pricing

• As of June 2024, 89 countries operate carbon pricing mechanisms, covering 12.8 Gt CO?e (25% of global emissions).
• Carbon pricing methods:
  • ETS (Cap-and-Trade / Baseline-and-Credit): Companies trade allowances or credits based on performance.
  • Carbon Tax: Fixed price on emissions; provides cost certainty but not emissions certainty.
  • Crediting Mechanism: Projects generating verified emission reductions earn tradable carbon credits.

Challenges in Implementing CCTS

• Target Setting: Overly lenient targets may cause credit oversupply, reducing prices; overly strict ones risk high compliance costs.
• Compliance Gaps: Under PAT, over half the required energy certificates were never purchased, with no penalties imposed.
• Delays: Credit issuance under PAT (Phase IV onwards) has been delayed since 2021, affecting market confidence.
• Transparency: Lack of public access to data on actual performance undermines accountability.
• Monitoring and Verification (MRV): Requires robust systems to prevent double counting and ensure credible reporting.

Steps to Strengthen India’s Carbon Market

• Align with global practices: Learn from the EU ETS — implement strict monitoring, gradual tightening of caps, and price stability mechanisms.
• Robust MRV Framework: Ensure accuracy in emission data to boost trust.
• Digital Trading Platform: Track and authenticate credit transactions; avoid fraud.
• Industry Incentives: Encourage early compliance via tax benefits and access to green finance.
• Trade Compatibility: Prepare for global measures like the EU’s Carbon Border Adjustment Mechanism (CBAM) by ensuring transparency and comparability.

India’s CCTS represents a significant shift in climate governance by institutionalizing carbon pricing. While it brings India in line with evolving global practices, the success of the Indian carbon market will depend on credible enforcement, transparent functioning, and strong regulatory architecture. If implemented effectively, it can drive low-carbon growth and support India’s target of reducing emissions intensity by 45% by 2030.

In News:

A magnitude 7.6 earthquake recently struck the Caribbean Sea southwest of the Cayman Islands, as reported by the U.S. Geological Survey. While no tsunami warning was issued, tremors were felt across the region, and assessments of damage are ongoing.

Geographical and Geopolitical Overview

• The Cayman Islands is a British Overseas Territory located in the western Caribbean Sea, south of Cuba and northwest of Jamaica.
• It comprises three islands:
  • Grand Cayman (largest and most populous)
  • Cayman Brac
  • Little Cayman
• The islands are part of the Cayman Ridge, an underwater mountain range, with the islands themselves being the emergent peaks of this ridgeline.
• Area: Only 264 sq. km
• Capital: George Town, located on Grand Cayman
• Official Language: English
• Currency: Cayman Islands Dollar (KYD)
• Ethnic Composition:
  • Afro-European: 40%
  • African: 20%
  • European: 20%
  • Other: 20%

Seismic and Climatic Features

• The islands are near the Cayman Trench, a deep subduction zone formed by the interaction between the North American and Caribbean Plates.
• Although major earthquakes are rare, the region is seismically active, and moderate to high seismic events are possible, such as the recent 7.6 magnitude quake.
• Climate: Tropical marine with a distinct wet and dry season; vulnerable to hurricanes, especially during the Atlantic hurricane season (June–November).

Ecological Significance

• Known for crystal-clear waters, coral reefs, and white sand beaches, the Cayman Islands are a global hub for marine biodiversity.
• Key ecological features include:
  • Coral reefs, seagrass beds, and mangroves
  • Famous dive sites like the Great Blue Hole and Bloody Bay Wall
• Terrestrial biodiversity is limited due to the islands’ small limestone-based land area, but they are home to endemic species such as the Grand Cayman Blue Iguana, which has recovered from critical endangerment through conservation efforts.

Economic Importance: A Global Financial Hub

• The Cayman Islands is renowned as a major offshore financial center and global tax haven.
• Zero taxation: No corporate, income, or capital gains tax
• Home to:
  • Offshore banks
  • Hedge funds
  • Multinational corporations
• The islands offer a favorable regulatory environment and strict financial confidentiality laws, although they now comply with international transparency norms.

In News:

India is actively exploring the creation of a Bharat Sovereign Wealth Fund (BSWF) or The Bharat Fund (TBF) to harness the untapped wealth embedded within its public sector ecosystem. This fund aims to unlock and strategically manage dormant capital, estimated at ?40 lakh crore ($450–500 billion), primarily held in equity stakes of around 80 listed public sector enterprises (PSEs) and banks.

What is a Sovereign Wealth Fund (SWF)?

A Sovereign Wealth Fund is a state-owned investment vehicle that manages national savings or surplus revenues—often derived from foreign exchange reserves, natural resource exports, or trade surpluses.

According to the Santiago Principles (2008), SWFs:

• Are owned by the general government (central or sub-national),
• Invest primarily in foreign financial assets, and
• Aim to achieve financial objectives rather than monetary policy.

Types of SWFs include:

• Stabilization Funds: Cushion fiscal shocks from revenue volatility.
• Future Generation Funds: Preserve wealth for long-term national benefit.
• Strategic Development Funds: Support priority sectors and national growth.
• Reserve Investment Funds: Enhance returns on foreign currency reserves.

Examples include:

• Norway’s Government Pension Fund Global ($1.7 trillion),
• China Investment Corporation ($1.35 trillion),
• Abu Dhabi Investment Authority ($993 billion).

India’s SWF Landscape and the BSWF Proposal

India previously explored SWF models in 2007–08 and again in 2010–11. While the National Investment and Infrastructure Fund (NIIF) was launched in 2015, it remains sector-specific and limited in scale. The proposed BSWF envisions a comprehensive and transformational fund akin to global best practices.

Key features of the BSWF proposal:

• Consolidation of government equity in PSEs and PSU banks under a professionally managed umbrella.
• Strategic divestment—e.g., reducing government stake from 51% to 40%—without losing operational control.
• Leveraging this pooled equity to attract global co-investors, potentially unlocking tens or hundreds of billions in foreign capital.

Why India Needs the Bharat SWF

• Wealth Unlocking: Potential monetization of over ?40 lakh crore in dormant government equity assets.
• Fiscal Prudence: Even a modest 2% annual divestment could yield $10+ billion, narrowing the fiscal deficit from 4.9% to ~4.6% of GDP.
• Strategic Sector Investment: Deployment into high-potential sectors—AI, semiconductors, electric vehicles, hydrogen energy, biotechnology—to drive innovation and economic leadership.
• Attracting Global Capital: Enhanced investor confidence, especially from established SWFs like those of Singapore, Norway, and Abu Dhabi, which are already increasing exposure in Indian equities and infrastructure.
• Social Sector Funding: Generate non-debt financial resources for welfare programs and national development missions.
• Soft Power Projection: Fund ventures, disaster relief, and advocacy efforts, strengthening India’s international standing.

Governance and Reform Imperatives

For the BSWF to succeed, it must:

• Be governed by a clear legal and regulatory framework aligned with Santiago Principles.
• Operate independently, with professional asset managers, market-based remuneration, and arm’s length oversight.
• Transition PSEs to function with autonomy and efficiency, reducing bureaucratic delays and enabling innovation.
• Foster joint ventures to turn around non-performing PSEs—among the 1,830 PSEs, around 400 remain non-functional, demanding nearly ?9 lakh crore annually in budgetary support.

Challenges and Concerns

• Macroeconomic Constraints: India faces a current account deficit and substantial fiscal pressures—conditions unlike traditional SWF-rich nations.
• Geopolitical and Market Risks: Global uncertainty and decoupling trends could impact cross-border investment strategies.
• Environmental and Technological Vulnerabilities: Investment risks in carbon-heavy sectors and exposure to data fraud or tech disruptions.
• Institutional Resistance: Political and bureaucratic inertia may delay implementation unless national interest is prioritized.

SWF Investments in India: A Growing Trend

Foreign SWFs are already deepening their footprint in India:

• $6.7 billion in direct investments in 2022 (up from $4.3 billion in 2021).
• Preferred sectors: healthcare, entertainment, renewables, infrastructure.
• Beneficiaries of tax exemptions on direct infrastructure investments via InVITS (Infrastructure Investment Trusts) and AIFs (Alternative Investment Funds), valid for investments made before March 31, 2024.

These incentives have encouraged foreign SWFs to explore establishing physical presence in India’s financial hubs, especially GIFT City, Gandhinagar.

In News:

The Global Energy Alliance for People and Planet (GEAPP) signed a Multi-Donor Trust Fund (MDTF) agreement with the International Solar Alliance (ISA) to mobilize $100 million for funding high-impact solar energy projects. This collaboration is part of a wider effort to accelerate India's clean energy transition, bridge financing gaps, and enhance the country's energy systems. Along with this agreement, two other key initiatives were announced:

• DUET (Digitalization of Utilities for Energy Transition)
• ENTICE 2.0 (Energy Transitions Innovation Challenge)

These programs aim to address energy transition challenges by fostering scalable, cost-efficient solutions, digitalizing utilities, and supporting innovations for sustainable energy.

Key Features:

• Multi-Donor Trust Fund (MDTF):
  • The MDTF aims to raise and deploy $100 million to finance impactful solar energy projects, with ISA driving the strategic direction.
  • GEAPP’s Project Management Unit will provide governance, fundraising, and technical expertise to ensure project success.
  • The collaboration emphasizes the importance of solar energy in achieving India's clean energy goals.
• DUET (Digitalization of Utilities for Energy Transition):
  • Focuses on transforming grid systems by digitalizing grid assets and integrating them with smart sensors.
  • Real-time data will help reduce transmission losses and facilitate Battery Energy Storage Systems (BESS) deployment, assisting in the integration of Distributed Renewable Energy (DRE) into the grid.
• ENTICE 2.0 (Energy Transitions Innovation Challenge):
  • A platform for identifying and scaling innovative solutions to accelerate the clean energy transition, especially within India's growing startup ecosystem.
  • Focuses on supporting investable opportunities for energy transition solutions, building on the earlier success of ENTICE 1.0.

Global Impact of GEAPP:

GEAPP, launched with an initial commitment of $464 million, has already funded 130 projects across 40 countries. These projects have impacted over 50 million people, helping reduce 43 million tons of CO2 emissions. The collaboration with ISA is expected to deepen GEAPP's efforts in mobilizing capital to foster clean energy access and tackle climate change.

India’s Clean Energy Transition:

India has already extended electricity access to over 800 million people, but about 2.5% of households still remain unelectrified. Distributed renewable energy, especially solar energy, will play a pivotal role in reaching these underserved populations. India aims for 47 GW of battery energy storage systems by 2032, which will support grid stability and energy access.

Additional Initiatives and Impact:

• Battery Energy Storage Systems (BESS):
  • GEAPP has also supported India’s first commercial standalone BESS project, which will provide 24/7 power to over 12,000 low-income customers.
  • The project is set to lower electricity tariffs by 55%, benefiting economically disadvantaged communities.
• Strategic Alliances:
  • The partnership with ISA and the strategic initiatives like DUET and ENTICE 2.0 aim to further India’s climate and energy goals, bringing renewable energy solutions to underserved regions, and supporting the country's energy security.

Role of GEAPP and ISA:

• GEAPP works to mobilize financing, provide technical expertise, and ensure effective implementation of renewable energy projects globally.
• ISA focuses on solar energy solutions, and with this agreement, it seeks to enhance the solar energy capacity in its member countries, aligning with climate targets.

About GEAPP:

GEAPP is a multi-stakeholder alliance comprising governments, philanthropy, technology partners, and financial institutions. Its goal is to transition developing economies to clean energy while enhancing economic growth. It aims to:

• Reduce 4 gigatons of carbon emissions.
• Provide clean energy access to 1 billion people.
• Create 150 million new jobs globally.

In News:

The Government of India has formed an 18-member panel, headed by Ramesh Chand, a member of NITI Aayog, to revise the base year of the Wholesale Price Index (WPI) to 2022-23 from the current base year of 2011-12. The panel will also work on a roadmap for transitioning from WPI to the Producer Price Index (PPI).

Key Highlights:

Role and Mandates of the Panel:

• Revised Commodity Basket: The panel will recommend a new commodity basket for both WPI and PPI, reflecting structural changes in the economy.
• Review of Price Collection System: The panel will evaluate the current system for price collection and propose improvements.
• Computational Methodology: It will determine the computational methodology for both WPI and PPI to ensure accuracy in tracking price changes.
• The panel has been tasked with submitting its final report to the Office of the Economic Adviser at the Department for Promotion of Industry and Internal Trade (DPIT) within 18 months.

Understanding WPI vs. PPI:

• WPI (Wholesale Price Index) tracks the price of goods at the wholesale stage (i.e., goods sold in bulk to businesses), and excludes the service sector.
  • Key Characteristics of WPI:
    • Does not consider consumer-facing prices.
    • Excludes services (about 55% of GDP).
    • Can have double-counting bias due to multiple transactions before the final sale.
    • Does not account for indirect taxes and may include export/import prices.
  • Use: WPI helps in tracking bulk price movements between businesses, but doesn't fully represent consumer price inflation.
• PPI (Producer Price Index) tracks prices at various stages of production, considering both goods and services, and measures the average change in prices received by domestic producers.
  • Key Characteristics of PPI:
    • Excludes indirect taxes (making it more accurate for price movement tracking).
    • Includes services, unlike WPI, giving a broader view of price trends across the economy.
    • More aligned with international standards (System of National Accounts).
    • Reflects prices before consumer consumption, providing a business-oriented perspective of price trends.

Why the Transition to PPI?

• The PPI is already used by major economies like the US, China, Germany, and Japan as it provides a more comprehensive measure of inflation from a producer’s perspective.
• It is expected to be a better indicator of inflationary trends in the overall economy, including both goods and services.

Challenges and Roadmap:

• The switch to PPI is complex, and the panel will need to ensure that the transition does not disrupt the current data collection and reporting systems. Both WPI and PPI will run concurrently until PPI stabilizes.

In News:

In a significant move, the Indian Parliament passed the BharatiyaVayuyanVidheyak Bill, 2024 on December 5, 2024, bringing much-needed reforms to the aviation sector. The Bill, which replaces the Aircraft Act of 1934, aims to streamline aviation regulations and improve the ease of doing business in the industry.

Key Highlights of the BharatiyaVayuyanVidheyak Bill, 2024:

• Single-Window Clearance for Aviation Personnel: One of the major changes is the transfer of responsibility for the Radio Telephone Operator Restricted (RTR) certification from the Department of Telecom (DoT) to the Directorate General of Civil Aviation (DGCA). This move consolidates the certification process under a single authority, making it easier for aviation personnel like pilots, engineers, and flight dispatchers to obtain their licenses.
• Regulation of Aircraft Design: The Bill not only retains provisions for regulating aircraft manufacturing, maintenance, and repair, but also introduces new provisions to regulate aircraft design and the places where aircraft are designed.
• Enhanced Penalties for Violations: The Bill specifies severe penalties for violations, such as dangerous flying, carrying prohibited items (like arms or explosives), or littering near airports. Offenders may face imprisonment up to three years, fines up to ?1 crore, or both.
• Introduction of Second Appeal Mechanism: For the first time, the Bill introduces a second appeal process against decisions of regulatory bodies like the DGCA and BCAS, ensuring further scrutiny of decisions related to penalties.
• Improved Licensing Process: The shift of the RTR certification process from the DoT to DGCA aims to curb allegations of corruption associated with the previous system, where candidates often had to pay bribes to clear exams.

Organizational Setup and Authorities:

The Bill outlines the establishment of three key authorities under the Ministry of Civil Aviation:

• DGCA: Responsible for civil aviation safety, licensing, and ensuring compliance with international standards.
• BCAS: Ensures aviation security and develops relevant security measures.
• AAIB: Investigates aviation accidents and incidents.

The central government retains supervision over these bodies, with the power to modify or review their orders.

Criticisms and Concerns:

• Lack of Autonomy for DGCA: The DGCA, unlike independent regulators in other sectors (such as telecom or insurance), operates under direct government supervision. The lack of clear qualifications, selection process, and tenure for the DGCA Director General has raised concerns about the regulator's independence.
• Unilateral Appointment of Arbitrators: The Bill empowers the government to unilaterally appoint an arbitrator in certain cases, which has been criticized for potentially violating the right to equality under Article 14 of the Constitution. The Supreme Court has previously ruled that such unilateral appointments may be unconstitutional.
• Discretionary Criminal Penalties: The central government is granted the discretion to impose criminal penalties for rule violations, which some argue could undermine the principle of separation of powers, as it is the legislature's role to define criminal offenses and penalties.
• Exclusionary Hindi Title: Some critics argue that the Hindi title of the Bill may alienate non-Hindi-speaking populations, which make up a significant portion of India’s demographic.