March 22, 2026

Current Affairs

National Highways – Green Cover Index (NH-GCI)

Context: The National Highways Authority of India released the first National Highways – Green Cover Index (NH-GCI) Annual Report (2025–26) to assess vegetation cover along India’s national highways.

The inaugural assessment evaluated nearly 30,000 km of National Highways across 24 states, using satellite data collected between July and December 2024.

According to the report, Assam recorded the highest highway green cover (53.16%), followed by Gujarat and Telangana, while Himachal Pradesh and Delhi registered the lowest green cover along their highway networks.

About the National Highways – Green Cover Index (NH-GCI)

The NH-GCI is a scientific framework developed to quantitatively measure the extent and density of vegetation along National Highways.

Key Features

Scientific Measurement:
The index assesses roadside plantations and vegetation cover along highways using objective, technology-based indicators.
Collaboration with Space Agency:
NHAI developed the index through a three-year Memorandum of Understanding (MoU) with the National Remote Sensing Centre, which functions under the Indian Space Research Organisation.
Satellite-Based Monitoring:
High-resolution imagery from the Resourcesat-2 and Resourcesat-2A is used to detect chlorophyll presence, enabling accurate estimation of vegetation density along highway corridors.
Standardised Green Index:
The NH-GCI creates a consistent national benchmark for comparing green cover performance across states and highway stretches.

Significance

1. Monitoring Green Infrastructure
The index supports effective monitoring of the Green Highways Policy, which mandates that 1% of the total project cost of national highway projects be allocated for roadside plantation and landscaping.

2. Promoting Sustainable Transport Corridors
Vegetation along highways improves carbon sequestration, dust control, and micro-climatic regulation, making transport infrastructure more environmentally sustainable.

3. Technology-Driven Governance
The use of satellite imagery and remote sensing introduces data-driven environmental monitoring, ensuring transparency and periodic evaluation of plantation initiatives.

4. Climate and Biodiversity Benefits
Highway plantations can function as green corridors, supporting biodiversity, reducing soil erosion, and improving ecological connectivity.

Government Buys Back G-Secs through RBI’s Switch Auction

Context: According to Business Standard, the Government of India recently bought back Government Securities (G-Secs) through a switch auction conducted by the Reserve Bank of India (RBI). The move aims to ease redemption pressures on upcoming debt maturities and improve the government’s overall debt management strategy.

What is a Switch Auction?

A Switch Auction is a debt management tool used by the RBI on behalf of the Government of India. Under this mechanism:

The government repurchases bonds that are close to maturity.
In exchange, it issues new long-term bonds to investors.

This process helps spread repayment obligations over a longer time horizon, thereby reducing short-term redemption pressure on government finances.

About Government Securities (G-Secs)

Government Securities (G-Secs) are tradable debt instruments issued by the Central or State Governments to finance public expenditure and fiscal deficits.

Key Features

Sovereign Guarantee
G-Secs are often called “gilt-edged securities” because they carry very low default risk, backed by the government.
Liquidity Management Tool
The RBI uses G-Secs in Open Market Operations (OMOs):
- Buying G-Secs injects liquidity into the banking system.
- Selling G-Secs absorbs excess liquidity.
Role in Banking Regulation
Commercial banks must maintain a portion of their deposits in G-Secs to meet the Statutory Liquidity Ratio (SLR) requirement.
Retail Participation
Through the RBI Retail Direct Scheme (2021), individual investors can directly purchase G-Secs via Retail Direct Gilt (RDG) accounts.

Classification of Government Securities

1. Short-Term Securities

These instruments generally do not pay periodic interest and are issued at a discount to face value.

Treasury Bills (T-Bills)
Issued by the Central Government with maturities of 91 days, 182 days, and 364 days.
Cash Management Bills (CMBs)
Introduced in 2010 to manage temporary cash mismatches, with maturities less than 91 days.

2. Long-Term Securities

These securities have longer tenors and usually pay periodic coupon interest.

Dated Government Securities
Issued by the Central Government with maturities ranging from 5 to 50 years, typically paying semi-annual interest.
State Development Loans (SDLs)
Issued by State Governments to raise funds from the market for developmental expenditure.

Significance of the Switch Auction

Debt Management Efficiency: Helps manage large upcoming debt repayments.
Market Stability: Prevents sudden liquidity stress in bond markets.
Fiscal Flexibility: Spreads liabilities over longer maturities, improving fiscal planning.

Thus, switch auctions represent an important tool in India’s public debt management strategy, helping maintain stability in both government finances and financial markets.