Daily Current Affairs

February 10, 2025

Current Affairs

Samudrayaan: India’s ‘Deep Ocean Mission’

Context: In 2026, India will launch Samudrayaan Mission, which will take three scientists in a submersible to explore the seabed at depths up to 6,000 meters. The Union has allocated Rs 600 crore for the Samudrayaan project. 

Relevance of the Topic: Prelims: Key facts about Samudrayaan Mission.

Deep Ocean Mission

  • Deep Ocean Mission (DOM) is India’s ambitious quest to explore and harness the depths of the ocean. 
  • As part of the DOM mission, under ‘Samudrayaan mission’, an indigenously developed manned submersible 'Matsya 6000’ with a three-member crew is designed to be sent to a depth of 6 kilometres in the ocean.
  • The mission was approved by the Union Cabinet in 2021 at a cost of nearly ₹4,077 crore over a five-year period in a phased manner. 
  • Ministry of Implementation: Ministry of Earth Sciences.
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The mission has six pillars

  1. Development of technologies for deep-sea mining and a manned submersible to carry three people to a depth of 6,000 metres in the ocean. The submersible will be equipped with a suite of scientific sensors, tools and an integrated system for mining polymetallic nodules from the central Indian Ocean.
  2. Development of ocean climate change advisory services, involving an array of ocean observations and models to understand and provide future climate projections.
  3. Technological innovations for the exploration and conservation of deep-sea biodiversity.
  4. Deep-ocean survey and exploration aimed at identifying potential sites of multi-metal hydrothermal sulphides mineralisation along the Indian Ocean mid-oceanic ridges.
  5. Harnessing energy and freshwater from the ocean.
  6. Establishing an advanced Marine Station for Ocean Biology, as a hub for nurturing talent and driving new opportunities in ocean biology and blue biotechnology.
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Matsya 6000

  • Matsya 6000 is India’s flagship deep-ocean human submersible that aims to reach the ocean bed at a depth of 6000 metres in the central Indian Ocean in Matsya 6000. 
  • Accompanied by three crew members, the submersible carries a suite of scientific tools and equipment designed to facilitate observations, sample collection, basic video and audio recording, and experimentation.
  • It has an operational endurance of 12 hours, which is extendable to 96 hours in the event of an emergency.
    • The shallow-water personnel sphere of Matsya 6000 has been certified for human-rated operations at up to 500-m water depths.
    • A human acclimatisation test in a shallow-water sphere was conducted with three personnel for two hours at a depth of 7 m.
  • Developed by: National Institute of Ocean Technology (NIOT).
  • Constructed from a titanium alloy, the sphere is engineered to withstand pressures of up to 6,000 bar. It is equipped with propellers enabling movement in all six directions and features three viewports that allow the crew to observe its surroundings.
  • With Matsya, India will be the only country to have an entire ecosystem of underwater vehicles encompassing deep-water remote operated vehicles (ROVs), polar ROVs, autonomous remote vehicles (AUVs), deep-water coring systems. 

Key Facts

  • DOM is one of nine missions under the Prime Minister’s Science, Technology, and Innovation Advisory Council (PMSTIAC). It is imperative that DOM supports the blue-economy priority area, blue trade, and blue manufacturing in India.
  • The ‘New India 2030’ document outlines the blue economy as the sixth core objective for India’s growth.
  • Years 2021-2030 have been designated by the United Nations as the ‘Decade of Ocean Science’.
  • NIOT has successfully conducted deep-sea locomotion trials on the seabed at a depth of 5,270 m using an underwater mining system, ‘Varaha’.
  • The U.S.A., Russia, China, France, and Japan have already achieved successful deep-ocean crewed missions. India is poised to join the ranks of these nations.

Why has a depth of 6,000 m been chosen?

  • United Nations International Seabed Authority (ISA) has allocated India, a 75,000-sq.-km area in the central Indian Ocean and an additional 10,000 sq. km at 26° S for this.
  • The decision to target a depth of 6,000 m for the DOM holds strategic significance. India has committed to the sustainable extraction of valuable resources, including polymetallic nodules and polymetallic sulphides. 
    • Polymetallic nodules, which contain precious metals like copper, manganese, nickel, iron, and cobalt, are found approximately 5,000 m deep, and polymetallic sulphides occur at around 3,000 m in the central Indian Ocean. 
  • Hence, India’s interests span depths of 3,000-5,500 m. By operating at a depth of 6,000 m, India can effectively cater to both the Indian Exclusive Economic Zone and the central Indian Ocean. 

Challenges facing DOM

  • Issues associated underwater:
    • High pressure in deep oceans: Being one metre underwater puts as much pressure on an object of one square metre area as if it were carrying 10,000 kg of weight. Operating under such high-pressure requires the use of meticulously designed equipment crafted from durable metals or materials. Additionally, electronics and instruments find it simpler to function in a vacuum or in space. Conversely, inside the water, poorly designed objects collapse or implode.
    • Landing on the ocean bed presents challenges due to its incredibly soft and muddy surface. This factor renders it exceedingly difficult for heavy vehicles to land or manoeuvre, as they would inevitably sink.
    • Extracting materials requires them to be pumped to the ocean surface, an undertaking that demands a large amount of power and energy. Unlike controlling rovers on distant planets, remotely operated vehicles prove ineffective in the deep oceans due to the absence of electromagnetic wave propagation in this medium.
    • Visibility also poses a significant hurdle as natural light can penetrate only a few tens of metres beneath the surface, whereas space observations are facilitated through telescopes.
  • All these intricate challenges are further compounded by factors like variations in temperature, corrosion, salinity, etc., all of which must also be dealt with.

Tax Cuts in Union Budget

Context: The Union Budget 2025 announced the biggest tax cuts for India’s middle class. While these cuts are expected to provide relief to a small section of taxpayers, they also pose risks related to revenue loss and fiscal consolidation.

Relevance of the Topic:Prelims: Trends in Budget- Taxation

Tax Cuts announced in Budget 2025: 

  • Expansion of Zero-Tax Bracket: Individuals earning between ₹7-₹12 lakh annually now get a complete tax rebate, which was previously applicable only for those earning below ₹7 lakh.
  • Increased Exemption limit: For those earning more than ₹12 lakh, the exemption limit has increased from ₹3 to ₹4 lakh.
  • Marginal Tax Rate reduction: All tax slabs have been adjusted in a way that reduces overall tax liabilities for individuals earning above ₹7 lakh.
  • Revenue Implications: The Finance Minister estimated that these tax cuts will lead to a revenue loss of ₹1 lakh crore, which is 8% of the direct income tax collection of ₹12.57 lakh crore. 

Logic behind Tax rebates

  • Despite the fall of 8% in the effective tax rate as a result of tax cuts, the Budget has estimated direct tax collection to go up by 14%.
  • This would require a 24% growth in taxpayers' income, which may or may not happen, depending on economic conditions.
  1. Optimistic scenario: The reductions in personal income-tax rates are set to:
    • boost middle-class purchasing power and consumption, which will be credit positive for corporates and financial sectors. 
    • benefit domestic manufacturers (particularly in automotive two-wheelers, passenger vehicles, and white goods sectors)
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  1. Pessimistic Scenario:
  • Projected revenue loss of ₹1 lakh crore due to income-tax cut would slow fiscal consolidation. If it is not offset by increased economic activity or higher GST collections, this would widen the fiscal deficit. 
  • If income growth remains subdued, tax buoyancy may not improve. The revenue shortfall could lead to cuts in government spending on welfare and development programs.

Impact of Tax Rebates on Fiscal Policy & Economic Growth

  • Government Expenditure Constraints: Under Fiscal Responsibility and Budget Management (FRBM) Act, the government cannot spend beyond a set deficit limit. This means:
    • Any shortfall in tax revenue could force cuts in government expenditure.
    • Fiscal policy could become pro-cyclical instead of counter-cyclical, worsening economic slowdowns.
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  • Fiscal Deficit Management:
    • In 2024, the government lowered its fiscal deficit target from 5% to 4.8%, primarily by cutting expenditures.
    • In 2025, the target has been further reduced to 4.4%, signaling fiscal contraction rather than expansion.
    • Many flagship government schemes have seen budget cuts to achieve this goal.
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  • Reliance on Private Sector Investment:
    • With government expenditure limited, the corporate sector is expected to drive economic growth.
    • However, despite previous tax cuts and capital expenditure boosts, private investment has remained weak.
    • Economic Survey 2025 indicates that global demand is uncertain, making exports an unreliable growth driver.

Is the Tax Cut Strategy Sustainable?

  • The government is betting on a trickle-down effect, assuming that increased disposable income will boost consumption, leading to higher corporate investment and job creation. However, if private investment does not pick up, the government could face a revenue crisis.
  • Cutting expenditures to maintain fiscal discipline could slow down economic growth, making recovery even harder.

Budget 2025: Railways Sector 

Context: The Union Budget allocated Rs 2.55 lakh crore for Indian Railways in the latest budget. Despite significant investments and announcements, execution challenges remain in the Railways sector.

Relevance of the Topic: Prelims: Railway Sector in India- Key Trends

Railways Budget

  • Till 2017, the Railway Budget was presented separately before the Union Budget. In 2017, it was merged with the general Budget. 
  • The Union Budget 2025 allocated Rs 2.55 lakh crore for Indian Railways in the latest budget, making a reduction from Rs 2.62 lakh crore allotment last year. 
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Positives in Railway Development

  • Infrastructure Development:
    • New railway lines, doubling, and gauge conversion to proceed at an accelerated pace.
    • Commissioning of 31,180 km tracks since 2014. The pace has increased from 4 kilometers per day in 2014-15 to 14.54 kilometers per day in 2023-24.
  • Electrification:
    • Electrification of 41,655 Route Kilometers since 2014. Indian Railways has electrified 294 Rkms/year (2014-25), a 16-fold increase from 18 Rkms/year (2009-14).
    • India is projected to have 100% electrified railways, making it the “greenest” in the world.
  • All-time high freight loading: 
    • Railways recorded an all-time high freight loading of 1,588 million tonnes (MT) in FY 2023-24, a substantial increase from 1,095 MT in 2014-15. 
    • Target: 3,000 MT by 2030.
  • Revenue:
    • Railways reported record total receipts of ₹2,56,093 crores in FY 2023-24, generating a net revenue of Rs 3,260 crore.
  • Safety-related initiatives:
    • Kavach, an Automatic Train Protection system to prevent collisions, has been deployed over 1,465 kms and integrated into 144 locomotives.
      • Kavach automatically applies brakes when a loco pilot fails to act.
      • Kavach 4.0 has been approved by the Research Designs and Standards Organisation (RDSO) in 2024.

Capital Expenditure and Financial Concerns: 

  • Railway surpluses are insufficient to pay for their planned capital expenditures (which include building lines and buying wagons). 
  • Capital expenditure is supported by the grant from the Central government and extra-budgetary resources, given that Railways earnings barely cover its operational costs.
  • Over the last decade, ₹13 lakh crore has been invested in modernising infrastructure, including:
    • 95% electrification of tracks
    • Expanding track length 
    • Record additions to rolling stock.
  • Despite this, financial performance remains weak:
    • Stagnant growth of freight traffic- at just over 2% growth.
    • Passenger revenue is rising, but patronage (passenger numbers) remain below pre-COVID levels.
    • Operating Ratio (OR) remains below 100.

Other Challenges in Railways: 

  • Safety:  Kavach safety system has not seen any expansion beyond 1,465 km.
  • Station Redevelopment Concerns:
    • Amrit Bharat station redevelopment projects show limited progress. 
    • Major projects like New Delhi station face delays due to repeated re-tendering.
    • Shift from Public-Private Partnership (PPP) to Engineering, Procurement, and Construction (EPC) mode raises concerns about maintenance funding.
  • Concerns in Electrification:
    • Approx 5,000 diesel locomotives, worth ₹30,000 crore remain idle or underutilised.
    • Environmental challenge: A significant portion of electricity still comes from fossil-fuel-based plants.
  • Concerns in Freights:
    • Declining freight share compared to other modes of transport. Freight expansion requires structural and policy interventions beyond budgetary allocations.
  • Lack of clear strategy:
    • Announcement of 200 new Vande Bharat trains without a specified timeline.
    • Vision of a 7,000-km high-speed rail network by 2047 lacks a concrete strategy.
  • Pending Projects: No update on pending projects like:
    • Western Dedicated Freight Corridor
    • Mumbai-Ahmedabad High-Speed Rail
    • Conversion of Integral Coach Factory (ICF) coaches to Vande Bharat standards.

South Coast Railway Zone

Context: Recently, the Union Cabinet approved the plan to create the new South Coast Railway Zone, the 18th railway zone of India. It also bifurcated the Waltair Railway Division into two parts.

Relevance of the Topic: Prelims: Railway Zones

List of Indian Railways Zones and their Headquarters

  • The Indian railways network is divided into 18 zones. 
  • Zones are divided into divisions. 
  • Each zone has their own headquarters.
Railway ZoneHeadquarters
Northern RailwayNew Delhi
North Central RailwayAllahabad
North Eastern RailwayGorakhpur
North Frontier RailwayGuwahati
North Western RailwayJaipur
Eastern RailwayKolkata
East Central RailwayHajipur
East Coast RailwayBhubaneshwar
West Central RailwayJabalpur
Western RailwayMumbai CST
Konkan RailwayNavi Mumbai
Central RailwayMumbai
South East Central RailwayBilaspur
South Eastern RailwayGarden Reach, Kolkata
South Coast RailwayVisakhapatnam
South Central RailwaySecunderabad
South Western RailwayHubli
Southern RailwayChennai

About South Coast Railway Zone

  • 18th Railway Zone of India. Approved by Union Cabinet on February 7, 2025
  • Legal Basis: Created under Andhra Pradesh Reorganisation Act, 2014
  • Carved out from: East Coast Railway (ECoR) and South Central Railway (SCR)
  • Headquarters: Visakhapatnam, Andhra Pradesh
  • Key Divisions:
    • Vijayawada Division (from SCR)
    • Guntur Division (from SCR)
    • Visakhapatnam Division (formerly part of Waltair Division)
  • Strategic Importance:
    • Enhances freight and passenger connectivity in Andhra Pradesh, Telangana, and Tamil Nadu
    • Supports industrial and agricultural growth
    • Boosts logistics for ports like Visakhapatnam and Krishnapatnam
    • Promotes tourism, including to Tirupati
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Bifurcation of Waltair Division

  • Recently, Waltair Railway Division (earlier under the East Coast Railway) was bifurcated into two parts.
    • 1st part: Visakhapatnam Railway Division, under the new South Coast Railway Zone.
    • 2nd part: A new division with headquarters at Rayagada, Odisha, under the East Coast Railway.
  • Significance of Waltair Railway Division:
    • It was among the largest revenue-generating areas of the Indian Railways.
    • Its freight traffic is linked to the mining and steel industries of Odisha and Chhattisgarh.
    • Contributed 74.66 million tonnes of freight loading in 2023-24.

Private Property and the State’s Right to Acquire

Context: There has been a debate around the laws regarding acquisition of private property by the state. In this context, let us see the evolution of land acquisition laws in the world and India.

Relevance of the Topic: Prelims: Evolution of Property Rights in India. 

Private Property and the State's Right to Acquire

  • The state’s power to acquire private property for public purposes is rooted in the legal doctrine of eminent domain, which has evolved across different legal systems, including those of the United States, South Africa, and India
  • This principle is needed to balance public interest with private property rights, ensuring due process and compensation for landowners.

Concept of Eminent Domain:

  • The term eminent domain originates from Hugo Grotius' 1625 treatise De jure belli ac pacis (On the Law of War and Peace).
  • Grotius stated that the state has supreme authority over private property and may acquire it for public utility or extreme necessity, provided compensation is given.
  • This concept spread through European colonial rule, leading to laws like:
    • Land Acquisition Act, 1894 (India)
    • Expropriation Act, 1975 (South Africa)
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Land Acquisition Laws in the US & India:

United StatesIndia
- Over time, land acquisition in the US has shifted towards private investment to boost economic growth.

- Kelo v. City of New London (2005): 

* The US Supreme Court ruled that land could be acquired for private economic development, fulfilling the "public use" requirement.

* This has sparked controversy, leading several states (e.g., Alabama, Texas) to restrict eminent domain for private projects.
- For over a century, land acquisition was governed by the Land Acquisition Act, 1894, which allowed the state to acquire land for "public purpose" with compensation.

- However, this act had flaws: 
* It only compensated landowners, ignoring the impact on tenants, laborers, and other affected communities.

- In 2013, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement (LARR) Act was enacted: 

* Social Impact Assessment (SIA): Ensures all affected people are considered.

* Fair compensation: Landowners must be adequately compensated.

*Rehabilitation and resettlement: Provisions for those displaced by land acquisition.

Conclusion

  • The US, South Africa, and India recognise the state's right to acquire private property for public purposes.  All three countries ensure due process and compensation for landowners.
  • While the US and South Africa still emphasise constitutional property rights, India has now positioned property rights to a legal right under Article 300A.
  • However, India's 2013 Land Acquisition, Rehabilitation, and Resettlement (LARR Act) has introduced a more humanitarian approach, ensuring compensation, rehabilitation, and transparency in land acquisition.

Forward Trading in G-secs

Context: The Reserve Bank of India (RBI) has decided to allow forward contracts in government securities (G-secs) to enable market development and aid financial institutions to hedge against interest rate risks

Relevance of the Topic: Prelims: Forward Trading in G-Secs; Other terms related to Capital Market

What is a Forward Contract?

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  • Meaning: It is a customised contract between two parties to buy or sell an asset at a specified price on a future date.
  • Use: A forward contract can be used for hedging (risk management) or speculation (profit from price changes).
    • Hedgers: People who want protection from price changes.
    • Speculators: People who want to profit from guessing future prices.

What are Government Securities?

  • G-Sec is a tradable debt instrument issued by Central government or State governments. It acknowledges the government's debt obligation.
  • Types of G-secs:
    • Short-Term Government Securities (maturity <1 year): Treasury Bills, Cash Management Bills.
    • Long-Term Government Securities (Maturity >1 year): Dated G-Secs.
  • G-Secs are issued through auctions conducted by Reserve Bank of India, through the electronic platform E-Kuber. 

Also Read: Government Securities: Explained 

Rationale for Introducing Forward Contracts in G-Secs: 

  • Enable long-term investors such as insurance funds to manage their interest rate risk across interest rate cycles. 
  • Enable efficient pricing of bond-based derivatives (derivatives that use bonds as underlying instruments).
  • Allows market participants to hedge against interest rate fluctuations or to speculate on future price movements of G-secs.

RBI’s Recent Reforms in Financial Markets: 

  • Expansion of Interest Rate Derivative Products: RBI has added multiple financial instruments to manage interest rate risks:
    • Interest Rate Swaps: A forward contract in which one stream of future interest payments is exchanged for another based on a specified principal amount.
    • Interest Rate Options: Financial derivatives that allow investors to hedge or speculate on the directional moves in interest rates.
      • A call option allows investors to profit when rates rise. 
      • A put option allows investors to profit when rates fall.
    • Interest Rate Futures: A financial derivative that allows exposure to changes in interest rates. Interest rate futures prices move inversely to interest rates.
    • Swaptions: A derivative that provides the right, but not the obligation, to enter into an interest rate swap agreement by a specified future date.
    • Forward Rate Agreements (FRA): An over-the-counter contract between parties that determines the rate of interest to be paid on an agreed-upon date in the future.
  • Electronic Trading & Non-Bank Broker Participation:
    • RBI has allowed non-bank SEBI-registered brokers to access NDS-OM for government securities trading.
      • Negotiated Dealing System – Order Matching (NDS-OM): An electronic trading platform for secondary market transactions in G-secs.
    • Impacts: More transparency, efficiency, and participation in the bond market.

Article 371 to 371J: Special Provisions for Certain States

Context: A regional party in poll-bound Meghalaya has indicated that bringing the State under the purview of Article 371-371J, which could help resume rat-hole coal mining, that is banned in the state since April 2014.

Relevance of the Topic: Prelims: Key facts about Article 371 to 371J. 

Background: 

  • Rat hole mining has been banned in Meghalaya by the National Green Tribunal (NGT) since 2014.
  • It is still ongoing in various parts of Nagaland because of the protection provided under Article 371A.
    • The Article bars any Act of Parliament related to their customary law and procedure (including civil and criminal justice matters, and ownership or transfer of land and resources), to prevail unless the state legislative assembly passes the resolution to do so.

About Article 371 to 371J: 

  • Article 371 to 371J (Part XXI) of the Constitution of India, grants some temporary, transitional, and special powers for 12 States, viz, Maharashtra, Gujarat, Nagaland, Assam, Manipur, Andhra Pradesh, Telangana, Sikkim, Mizoram, Arunachal Pradesh, Goa, and Karnataka.
    • Article 371 has been part of the Constitution since 26 January 1950.
    • Articles 371(A-J) have been brought in via amendments through Article 368.
  • Originally, the constitution did not make any special provisions for these states. They have been incorporated by the various subsequent amendments made in the context of reorganisation of the states or conferment of statehood on the Union Territories.
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Intention behind Article 371 to 371J

  • Meet the aspirations of the people of backward regions of the states
  • To protect the cultural and economic interests of the tribal people of the states  
  • To deal with the disturbed law and order condition in some parts of the states 
  • To protect the interests of the local people of the states. 

Article 371 A of Indian Constitution

Article 371-A makes the following special provisions for Nagaland:

  1. The Acts of Parliament relating to the following matters would not apply to Nagaland unless the State Legislative Assembly so decides:
    • Religious or social practices of the Nagas.
    • Naga customary law and procedure.
    • Administration of civil and criminal justice involving decisions according to Naga customary law; and
    • Ownership and transfer of land and its resources.
  1. The Governor of Nagaland shall have special responsibility for law and order in the state so long as internal disturbances caused by the hostile Nagas continue. In the discharge of this responsibility, the Governor, after consulting the Council of Ministers, exercises his individual judgement and his decision is final. This special responsibility of the Governor shall cease when the President so directs.
  2. The Governor has to ensure that the money provided by the Central Government for any specific purpose is included in the demand for a grant relating to that purpose and not in any other demand moved in the State Legislative Assembly.
  3. A regional council consisting of 35 members should be established for the Tuensang district of the state. The Governor should make rules for the composition of the council, manner of choosing its members, their qualifications, term, salaries, and allowances; the procedure and conduct of business of the council; the appointment of officers and staff of the council and their service conditions; and any other matter relating to the constitution and proper functioning of the council.

Initiatives in Budget 2025 for Urban Development

Context: The Union Budget 2025-26 has announced an Urban Challenge Fund of Rs 1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’ and Inclusive development. 

Challenges faced in Urban Regions

  • Unplanned urbanisation: Unplanned urbanisation is one of the major challenges faced, this leads to the slum proliferation in the urban regions. (17.5% of urban population in India resides in the slum as of 2022).
  • Infrastructure and basic facility access: The urban population faces the challenges in the access to basic facilities like drinking water and sanitation. (71% of drinking water in India is contaminated and only 54% have access to operational sanitation facilities.)
  • Quality of life: Cities like New Delhi have been declared the most polluted city globally with the poor Air Quality Index.
  • Social inequality and marginalisation: About 13.7% of India's urban population lives below the national poverty line.
  • Lack of social security: Urban areas are facing in-formalization of the labour force leading to the lack of social security like pension and medical benefits enhancing the vulnerability.
  • Lack of Livelihood security: The unorganised labour in India is rising especially in the construction sector which have lack of job security and uniform income.
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Initiatives in Budget 2025-26

  • Urban Challenge fund: 
    • The government has announced ₹1 lakh crore urban challenge fund to revitalise the cities as growth hubs and creative redevelopment of the cities.
    • This fund will finance up to 25% of the cost of viable urban infrastructure projects, with a stipulation that at least 50% of the cost is funded from bonds, bank loans, and private-public partnerships (PPPs). 
    • An allocation of Rs 10,000 crore is proposed for 2025-26. Cities are expected to raise Rs 40,000 crore through floating municipal bonds, entering into PPPs, and taking loans to complement the government’s funding. 
  • National Geospatial Mission: 
    • The Mission will be started to develop foundational geospatial infrastructure and data. 
    • Using PM Gati Shakti, this Mission will facilitate modernisation of land records, urban planning, and design of infrastructure projects.
  • Promoting benefits for GIG workers: 
    • The government acknowledged the Gig workers on online platforms as the new-age economy. 
    • The government has announced to arrange for their identity cards and registration on the e-Shram portal. 
    • They will be provided healthcare under the PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.
  • Support for vendors: The budget announced the revamping of the PM SVANidhi scheme to enhance loans from banks, UPI linked credit cards with a Rs. 30,000 limit, and capacity building support.
    • PM SVANidhi was launched in 2020 during the Covid-19 pandemic. 
    • Under the scheme, street vendors can avail themselves of loans of Rs 10,000, Rs 20,000, and Rs 50,000. 
  • Housing: SWAMIH Fund 2.0 will be established as a blended finance facility with contribution from the Government, banks and private investors. This fund of Rs. 15,000 crore will aim for expeditious completion of another 1 lakh units.

Benefits of the proposed initiatives

  • Reducing slums: The SWAMIH 2.0 fund for affordable housing will lead to the reduction in the count of slum dwellers in urban areas and promote the quality of life in urban areas.
  • Promoting social security: Proposed initiatives like cards for GiG workers and extension to healthcare under PM Jan Arogya Yojana will enhance social security and will promote Universal Healthcare for the vulnerable section.
  • Better planning: National Geospatial Mission will promote prompt urban planning, reducing unplanned and uncontrolled urbanisation.

Fiscal challenge in Urban Development: 

  • Shortfall of funds with Urban Local Bodies: 
    • Transfers to urban India primarily occur through three channels — direct transfers to Urban Local Bodies (ULBs); Centrally Sponsored Schemes (CSS); and Central Sector Schemes. There has been a reduction in direct transfers to ULBs. 
    • With the abolition of octroi (a key revenue source for cities) the expectation was that the lost revenue would be compensated through central devolution. However, with the introduction of GST, the source revenue of ULBs fell by over 21%. 
    • This shortfall will force cities to raise their own revenues, and thus burden citizens with additional taxes.
  • Budget allocations for Central Sector Schemes (CSS) schemes fall short in the Union Budget 2025. E.g., PMAY (CSS component) saw a 30% reduction in allocation compared to last year. This will place additional financial pressure over the states and the cities.
    • CSS involves cost-sharing between the Union, States, and local governments. 
    • Schemes under CSS: PMAY, Swachh Bharat Mission (SBM), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Smart Cities Mission. 
  • Issue with Tied funds through CSS:
    • CSS schemes/CSS funds are directly controlled by the Union government and involve conditional transfers, and often have strong political overtones.
    • This often diverts the resources of the state government towards specific projects, thus compromising long-term inclusivity of urban development. E.g., skewed CSS budgetary allocations to Mass Rapid Transit Systems and metro projects. 

Urban development is a key pillar of India’s growth strategy as cities contribute nearly 67% to the GDP. The proposed initiatives along with strong urban infrastructure under AMRUT 2.0 scheme can help India to achieve the SDG 11 i.e., sustainable cities. The need of the hour is rational fiscal devolution and flexible funding mechanisms to ensure sustainable development. 

Restructuring Skill India Programme

Context: The Union Cabinet has restructured the Central Sector Scheme ‘Skill India Programme’ till 2026 with an overlay outlay of Rs.8,800 crore from the period 2022-23 to 2025-26. This initiative aims to develop a future-ready workforce by integrating demand-driven, technology-enabled, and industry-aligned training across India.

Relevance of the Topic:Prelims: Key facts about the Restructured Skill India Programme. 

Restructured Skill India Programme

  • Nodal Ministry: Ministry of Skill Development and Entrepreneurship
  • The programme consolidates three flagship schemes:
    • Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)
    • Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS)
    • Jan Shikshan Sansthan (JSS) Scheme
  • Under the three flagships schemes, there are more than 2.27 crore beneficiaries till date.
  • Aim:
    • To build a skilled future-ready workforce
    • To integrate demand-driven, technology-enabled, and industry-aligned training 
    • To provide structured skill development, on-the-job training, and community-based learning.
    • To ensure that both urban and rural populations, including marginalized communities, have access to high-quality vocational education.

1. Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)

  • Provides NSQF-aligned skill training through:
    • Short-Term Training (STT)
    • Special Projects (SP)
    • Recognition of Prior Learning (RPL)
  • Target beneficiary: Age group of 15-59 years.
  • Key Features:
    • Integration of On-the-Job Training (OJT) within skilling programs.
    • Introduction of 400+ new courses in AI, 5G, Cybersecurity, Green Hydrogen, and Drone Technology.
    • Establishment of Skill Hubs in premier institutions like IITs, NITs, JNVs, and Kendriya Vidyalayas. International mobility focus through Mobility Partnership Agreements (MMPAs).
    • Blended learning approach incorporating digital training. Training material translated into eight regional languages.
    • Inter-ministerial convergence with PM Vishwakarma, PM Surya Ghar, and the National Green Hydrogen Mission.
    • Ease of Doing Business approach to streamline participation.

2. PM National Apprenticeship Promotion Scheme (PM-NAPS)

  • Objective: Encourage industry-led skill development through apprenticeships.
  • Target Group: 14-35 years.
  • Key Features:
    • Focus on the earn-while-you-learn model.
    • Align skilling initiatives with futuristic job markets and industry trends.
    • 25% stipend support (up to Rs. 1,500 per month per apprentice) via Direct Benefit Transfer, provided by the Central Government.
    • Coverage: AI, robotics, blockchain, green energy, and Industry 4.0.
    • Special focus on MSMEs and underserved areas such as Aspirational districts and North-East Region.

3. Jan Shikshan Sansthan (JSS) scheme

  • Objective: Community-based skilling for disadvantaged groups.
  • Target Group: 15-45 years, especially women, rural youth, and economically weaker sections.
  • Key Features:
    • Low-cost, doorstep training for self-employment and wage-based livelihoods.
    • Creating awareness on health, hygiene, gender equality, and education within communities to promote inclusive skilling.
    • Linked with PM JANMAN, ULLAS, and financial literacy programs.
    • Certification integrated with National Skills Qualification Framework (NSQF), DigiLocker, and National Credit Framework (NCrF).
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Significance of Skill India Programme: 

  • Enhancing Employability: Aligning training with national and global industry standards.
  • Economic Growth: Strengthening workforce development to boost productivity.
  • Technology Integration: Preparing the youth for futuristic technologies.
  • Global Competitiveness: Promoting international mobility and globally recognised certifications.
  • Entrepreneurship and Self-Reliance: Encouraging skill-based startups and self-employment opportunities.
  • Social Inclusion: Ensuring access to skill development for rural and marginalized communities.

The continuation of the Skill India Programme reinforces the importance of continuous upskilling and reskilling. The initiative will directly contribute to Periodic Labour Force Survey (PLFS) data, ensuring that workforce development policies remain aligned with economic and industrial trends.