Infrastructure

UDAN 5.5 Launched

Context: The Centre has launched the next phase of its flagship UDAN (Ude Desh ka Aam Naagrik) scheme. UDAN 5.5 intends to promote last-mile connectivity in remote regions, hilly areas, and island territories.

Relevance of the Topic:Prelims: Key facts about UDAN Scheme.

About UDAN (Ude Desh ka Aam Nagrik) Scheme: 

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  • Launched by the Ministry of Civil Aviation for regional airport development and regional connectivity enhancement. It is a part of the National Civil Aviation Policy 2016.
  • Objectives:
    • To improve the air connectivity to remote and regional areas of India.
    • To make flights accessible and affordable in tier-2 and tier-3 towns. 

Key Features of UDAN scheme: 

  • Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500per hour of flight. This would be achieved through:
    • A financial stimulus in the form of concessions from Central and State governments and airport operators.
    • Viability Gap Funding (VGF): A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.
      • Regional Connectivity Fund (RCF): created to meet the viability gap funding requirements under the scheme.
    • The partner State Governments would contribute a 20% share to this fund.
      • UTs and NER states shall contribute only 10%.
  • UDAN created a framework based on the need and led to the formulation of:
    • Lifeline UDAN: for transportation of medical cargo during pandemic.
    • Krishi UDAN: value realization of agriculture products especially in Northeastern Region {NER} and tribal districts.
    • International UDAN routes for NER to explore International Connectivity from/to Guwahati and Imphal.

Previous Phases of the Scheme

  • Phase 1:
    • Launched in 2017
    • Objective: Connect underserved and unserved airports in the country.
  • Phase 2:
    • Launched in 2018
    • Aim: Expand air connectivity to more remote and inaccessible parts of the country.
  • Phase 3:
    • Launched in November 2018
    • Focus: Enhancing air connectivity to hilly and remote regions of the country.
  • Phase 4:
    • Launched in December 2019
    • Focus: Connecting islands and other remote areas of the country.
  • Phase 5:
    • Launched in 2023
    • Focus on Category-2 (20-80 seats) and Category-3 (>80 seats) aircrafts.
    • No restriction on the distance between the origin and the destination of the flight.
    • VGF to be provided will be capped at 600 km stage length for both Priority and Non-Priority area.
      • Earlier capped at 500 km.

The Latest phase: UDAN 5.5

  • UDAN 5.5 intends to promote last-mile connectivity in remote regions, hilly areas, and island territories.
  • Focus: Routes that will be serviced exclusively with sea-planes, choppers, and small aircraft with a seating capacity of less than 20 passengers.
  • Operators will get a chance to chart seaplane routes between 80 water bodies, which include waterdromes, ponds, and dams.
  • Around 400 helipads are also included in the scheme for operators to map out chopper routes.
  • Allows the participation of operators of aircraft in categories such as:
    • Category ‘1A’: seat less than nine passengers.
    • Category ‘1’: less than 20 passengers.

Achievements under UDAN Scheme: 

  • Expanded air connectivity:
    • UDAN has provided air connectivity to more than 29 States/ UTs across the country.
    • It has provided a fair amount of air connectivity to Tier-2 and Tier-3 cities at affordable airfares and has transformed the way travelling was done earlier.
    • Facilitated the travel of around 1.5 crore passengers across more than 2.8 lakh flights.
  • Increased routes:
    • Operationalised 619 routes, including helicopter routes.
  • Increasing airports:
    • The number of operational airports in the country has doubled from 74 in 2014 to more than 157 in 2024.
  • Reaching the last-mile:
    • 68 underserved/unserved destinations which include 58 Airports, 8 Heliports & 2 Water Aerodromes have been connected under UDAN scheme.
  • The new scheme has attracted players who want to start seaplane services across the Andaman and Nicobar island chain, among other potential routes.

Scope for further development under UDAN: 

  • Present Situation:
    • At present, there are no seaplane services in India.
    • The number of small aircraft in the A1 category number is less than 20.
  • Over the next five years, Industry estimates forecast:
    • Creation of over 50 seaplane routes 
    • Development of around 20-25 aerodromes 
    • Requirement of around 30 aircrafts.  

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.

Govt working to share Gati Shakti data with Private Sector

Context: The Department of Promotion of Industry and Internal Trade (DPIIT) is working to issue detailed guidelines on how the data and mapping facilities provided under PM Gati Shakti portal can be utilised by private sector players, to make efficient decisions in infrastructure and other projects.

Relevance of the topic:

Prelims: Questions based on Gati Shakti Scheme.

Mains: Detailed question about Gati Shakti; Challenges in the infrastructure sector in India. 

About Gati Shakti- National Master Plan

  • The PM Gati Shakti- National Master Plan for Multi-modal Connectivity is a digital platform to bring Ministries together, including Railways and Roadways, for integrated planning and coordinated implementation of infrastructure connectivity projects. 
  • Launched: October 2021 

Key Objectives:

  • Integrated planning by bringing Ministries together on the GIS platform for better coordination.
  • Promoting multi-modal connectivity by developing a seamless pattern of rail, road, ports, airports etc.
  • Reduction in logistics cost to 8% as in most developed nations.
  • Promoting ‘Make in India’ by strengthening India’s position as manufacturing and trade hub.
PM Gatishakti

Key Features:

  • PM Gati Shakti will incorporate infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc.
  • It will cover Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, and agri zones to improve connectivity & make Indian businesses more competitive.
  • It will leverage technology extensively including spatial planning tools with ISRO (Indian Space Research Organisation) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics).
PM Gatishakti

Achievements of Gati Shakti

  • Government Integration: Gati Shakti has integrated 44 Ministries and 36 states and UTs under a single platform.
  • Network planning group (NPG) has evaluated more than 200 major infrastructure projects.
  • State Master Plans: All 36 states/UTs have developed state master plans aligning with the National Master Plan. (Over 533 projects have been mapped on PM Gati Shakti postal for better coordination)
  • EXIM and Trade facilitation: Scheme supports National Logistics Policy. (India’s ranking in World Banks Logistics Performance Index improved from 44 in 2018 to 38 in 2023)
  • Training and Capacity building: Over 20,000 officials have been trained through the iGoT platform with more than 150 interactive sessions.
  • Expanding to districts: PM Gati Shakti District Master Plan is being developed to enable district level infrastructure planning supported by BISAG-N (Bhaskaracharya National Institute for Space applications and Geoinformatics).
  • Taking Gati Shakti to International Stage: Diplomatic engagements with countries like Nepal, Bangladesh, Sri Lanka, Madagascar, Senegal, and Gambia promoting geospatial technology for integrated infrastructure planning worldwide.

Challenges in Indian Logistics sector solved by Gati Shakti

ChallengesSolutions provided by Gati Shakti
High Logistical Cost: India logistics cost hovers about 14% unlike 8% in the USA. Streamlining Multi-Modal connectivity with rail, road, air and waterways by bringing a single GIS-based digital platform for all ministries.
Fragmented Supply ChainsGati Shakti eliminated the redundant projects and ensures synchronized execution to streamline supply chain
Slow execution of projectsGati Shakti uses a one-stop system for approval of the project to gain clearances. Also, GIS based decision making to avoid bureaucratic delays.
Over dependence on road (Over 40% traffic burden is on the National Highways)Expanding dedicated freight corridors and developing logistics parks and air cargo to depend on the road infrastructure.
Lack of digitisation of logistic sectorsGati Shakti integrated IoT and AI for real-time monitoring and operations of the logistics sector in India.
Inadequate storage and warehousing infrastructureGati Shakti develops a multi-modal logistics park, cold chain by enhancing private participation.
Environmental concerns and sustainability issuesGati Shakti provides green logistic opportunities like electric vehicles, renewable energy and low carbon logistics solutions to align with sustainable development goals of India.
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What more can be done?

PM Gati Shakti has revolutionised logistics, but further steps are needed like strengthening AI-driven digital infrastructure, expanding rail and waterways, and boosting public-private partnerships, among others. 

Maritime Development Fund & Indian Shipping Industry

Context: The Union Budget 2025 has announced Rs. 25,000 crore Maritime Development Fund for the shipping industry, among other incentives.

Relevance of the Topic:Mains: Budget- Maritime Sector; Indian Shipping Industry

Present status of Indian Shipping Industry

  • Cargo handling:
    • The cargo handled at major ports has only marginally increased from 1,071.76 million tons in 2016-17 to 1,249.99 million tons in 2020-21. (Ministry of Ports, Shipping and Waterways) This is a cumulative growth of 14.26% or an annual increase of just 2.85%.
  • Vessels handled: 
    • The number of vessels handled at these ports declined by 5.93%, from 21,655 vessels in 2016-17 to 20,371 in 2020-21.
  • Indian-registered fleet:
    • The number of Indian-registered ships has increased from 1,313 in 2016-17 to 1,526 in September 2024 — a cumulative rise of 16.77% and an average annual growth of 2.4%.
  • Gross tonnage:
    • It has grown from 11,547,576 GT in 2016-17 to 13,744,897 GT — a cumulative increase of 17.44% and an annual average growth of 2.5%.
  • Aging Indian fleet:
    • Average vessel age rose to 26 years in 2022-23. However, this has now improved to 21 years, with the addition of 34 relatively younger vessels (average age of 14 years) in 2024.
  • Declining Market share:
    • Indian shipping companies continue to lose market share to foreign-flag vessels in EXIM trade and to rail and road transport for domestic cargo movement.
  • Global ranking:
    • India’s global ranking in ship ownership declined from 17 to 19. This decline indicates that investments in port infrastructure alone have not translated into a stronger domestic shipping sector.

Progress under Sagarmala Initiative

  • As of September 2024, 839 projects requiring an investment of ₹5.8 lakh crore have been outlined, with 241 projects (₹1.22 lakh crore) completed, 234 projects (₹1.8 lakh crore) under implementation, and 364 projects (₹2.78 lakh crore) in various stages of development.
  • Focus areas:
    • Port modernisation (₹2.91 lakh crore)
    • Port connectivity (₹2.06 lakh crore)
    • Port-led industrialisation (₹55.8 thousand crore)
    • Coastal community development.
  • Impact of initiatives: GDP increased from ₹153 trillion in 2016-17 to ₹272 trillion in 2022-23, despite setbacks due to the COVID-19 pandemic.
  • EXIM growth: India’s EXIM trade grew from $66 billion in 2016-17 to $116 billion in 2022, reflecting a 77% cumulative increase.
  • Targeting Export-led growth: The government has set ambitious targets, aiming to achieve a $7 trillion economy by 2030, with exports projected to reach $2 trillion by 2030.

Sagarmala Programme: 

  • Sagarmala is a flagship initiative to transform India’s maritime sector. 
  • Aim: With India's extensive coastline, navigable waterways, and strategic maritime traderoutes, Sagarmala aims to:
    • Unlock the untapped potential of these resources for port-led development and coastal community upliftment.
    • Enhance the performance of the logistics sector by reducing logistics costs for both domestic and international trade.
    • Minimize the need for extensive infrastructure investments by leveraging coastal and waterway transportation, thus making logistics more efficient and improving the competitiveness of Indian exports.
  • Nodal Ministry: Ministry of Ports, Shipping and Waterways.
  • It has four main aspects associated with it, as given below:
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  • Overall set of projects are divided into 5 pillars and 24 categories as below:
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Challenges faced by the Shipping Industry

  • Capital Constraints and High Borrowing Costs:
    • Indian shipping companies face high borrowing costs, short loan tenures, and strict collateral requirements.
    • Unlike foreign counterparts, Indian ship-owners cannot use ships as collateral, making financing difficult.
    • Lenders do not fully understand the cyclical nature of the industry, leading to rigid loan restructuring policies.
  • Unfavourable Tax Policies:
    • Indian-flagged ships are subject to 5% IGST on purchase price, a tax not imposed on foreign vessels operating in Indian waters.
    • Indian ship-owners must deduct TDS on seafarers' salaries, whereas foreign vessels employing Indian seafarers do not have to.
    • These disparities make Indian vessels significantly less competitive.
  • Ship-building Challenges:
    • India spends close to $75 billion annually on leasing ships from outside.
      • Also, India owns just about 2% of the world’s total tonnage and has some 1,500 ships. 
      • With regard to shipbuilding, India currently has less than 1% share of the global market, which is dominated by China, South Korea and Japan.
    • India’s shipbuilding industry suffers from inadequate infrastructure, high input costs (especially steel), dependence on imports for spare parts, and delays in vessel deliveries. 
    • Customs duties on imported machinery increase production costs. Lack of skilled workforce reduces efficiency. These issues discourage ship-owners from investing in Indian shipyards.
  • Competition from Foreign-flagged Vessels:
    • Foreign-flagged vessels, often registered in tax havens, enjoy easier access to capital, lower borrowing costs, and lenient regulations.
    • Their ownership structures allow them to operate with minimal regulatory oversight, making them far more competitive than Indian-flagged ships.

Steps Taken by the Government

  • Maritime Development Fund (MDF):
    • A ₹25,000 crore fund aimed at improving access to capital for ship-owners. The government will contribute up to 49% to the fund and mobilise the rest from the private sector.
    • The fund will provide long-term and low-cost financial support for Indigenous shipbuilding and other blue water infrastructure projects. 
    • The fund aims to provide various forms of financial support, including debt, equity, viability gap funding (VGF), and buyer credit.
  • Ship-building clusters:
    • Facilitating ship-building clusters help to increase the range, categories and capacity of ships.
    • This will include additional infrastructural facilities, skilling and technology to develop the entire ecosystem.
    • This will not only improve overall infrastructural and logistical support for the export sector, but also help to save a huge amount of forex remitted in dollars to foreign shipping lines.
  • Infrastructure Status for Large Vessels: This status allows shipping companies to access benefits similar to those in other infrastructure sectors.
  • Customs Duty Exemption on Shipbuilding Spares: The government has extended this exemption for another 10 years.
  • Revamped Financial Assistance Policy: This includes credit incentives for shipbreaking and an extension of the tonnage tax scheme to inland vessels.

While these initiatives are steps in the right direction, they may not be sufficient given the capital-intensive nature of the shipping and shipbuilding sectors. Additionally, clarity is needed on how the ₹25,000 crore MDF will be mobilised and distributed over the coming years.

Way Forward

  • Long-Term Financing at Competitive Interest Rates: Indian Shipping industry requires loan tenures of 7-10 years with lower interest rates to facilitate ship acquisition and modernization.
  • Expansion of Shipbuilding Infrastructure: India must invest in new shipyards and modernise existing ones to build large vessels and reduce dependence on imports.
  • Tax Reforms to Level the Playing Field: Removing IGST on ship purchases and exempting Indian seafarers from TDS requirements will improve competitiveness.
  • Encouraging External Commercial Borrowings (ECBs): If strategically utilised, ECBs could help bridge the funding gap in the maritime sector.
  • Investment in Green Technology: To meet global emissions reduction targets, India must promote eco-friendly shipbuilding and retrofitting of existing vessels.

Modified UDAN Scheme

Context: The Union Budget 2025-26 has announced a ‘modified UDAN scheme’ to further improve regional connectivity. 

Relevance of the topic:

Prelims: Scheme-specific questions on UDAN scheme.

Mains: Detailed question on aviation sector and UDAN scheme. 

About Modified UDAN Scheme

  • The modified UDAN scheme plans to connect 120 additional destinations across the country, thereby broadening the reach of affordable air travel.
  • It aims to facilitate air travel for an additional 4 crore passengers to benefit individuals from regional connectivity. 
  • The government will support the establishment of new greenfield airports, particularly in states like Bihar.
  • The regional connectivity scheme will also support helipads and smaller airports in hilly, aspirational, and North-eastern districts. 

About UDAN Scheme- Ude Desh ka Aam Nagrik

  • The UDAN scheme (Regional Connectivity Scheme) was launched in 2017.
  • Initiative of: Ministry of Civil Aviation
  • Aim: 
    • To enhance the aviation infrastructure and connectivity in India.
    • To make flights accessible and affordable in tier-2 and tier-3 towns. 
  • Key features of the scheme: 
    • Affordable Airfare: Capped airfare at ₹2,500 per hour of flight on select regional routes to make air travel accessible.
    • Regional Connectivity: Focuses on connecting underserved and unserved airports in Tier 2 and Tier 3 cities.
    • Viability Gap Funding: Financial support from the government to airlines for operating regional routes, ensuring affordability.
    • Public-Private Partnership: Encourages private airlines to participate in regional aviation through incentives.
    • Boost to Tourism & Economy: Enhances accessibility to remote regions, fostering tourism and economic development.
    • No Airport Charges: Airports under UDAN are exempted from landing, parking, and other charges to reduce operational costs.
    • Intermodal Connectivity: Integrates regional air travel with rail, road, and waterways for seamless transport.
    • Phased Expansion: Implemented in multiple phases, with each phase covering new routes and destinations.

Possible Impacts of Scheme

  • Enhanced regional connectivity with the development of greenfield airports in the remorse regions Eg; Pakyong Airport (Sikkim) became operational under UDAN, providing direct air connectivity to the state.
  • Enhancing passenger traffic in the flights by making them affordable, with capped pricing. 
  • Job creation: Development of airports and construction of greenfield airports will lead to the job creation and development of ancillary industries in the region.
  • Boost tourism: E.g., Kishangarh Airport (Rajasthan) near Ajmer has boosted religious tourism at Ajmer Sharif Dargah and Pushkar.
  • Development of remote regions: UDAN has brought air connectivity to difficult terrains like the Northeast and the Andaman & Nicobar Islands. Eg; Tezu Airport (Arunachal Pradesh) now provides better access to the region.
  • Support to the aviation sector: Small airlines benefit from Viability Gap Funding (VGF), making regional routes profitable. Eg; Alliance Air & Flybig Airlines have expanded their operations due to government support.
  • Reducing travel time by promoting small flights with quick operations. Eg; Dibrugarh to Pasighat (Arunachal Pradesh) now takes less than an hour by air, compared to a 10-hour road journey.
  • Strengthening national security by development of the new airports at the border and remote regions. Eg; Kargil Airport (Ladakh) is being developed under UDAN to strengthen air access in sensitive regions.
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Challenges to Regional Connectivity in India

  • Financial Viability: Many airlines struggle due to low profitability (E.g., Air Odisha, Air Deccan shut down).
  • High Operating Costs: Rising fuel prices make regional flights expensive (E.g., SpiceJet withdrew from UDAN routes).
  • Airline Fleet Shortage: Not enough small aircraft (E.g., Flybig Airlines delayed expansion). 
  • Infrastructure Gaps: Many airports lack night landing, ATC, or maintenance.
  • Low Passenger Demand: Some routes have poor occupancy (E.g., Jamshedpur-Kolkata flights discontinued). 
  • Weather & Geography: Remote areas face frequent disruptions. 

Also Read: Falling of Airline sector in India 

Maritime Sector in India

Context: India’s maritime sector has become a cornerstone of the country’s economic resurgence. However, to harness its full potential, the maritime sector would need an investment of $1 trillion by 2047 and ₹5 lakh crore by 2030.

Relevance of the topic:

Prelims: Overview of India's Maritime Sector.

Mains: Maritime Sector in India: Significance, challenges and Initiatives.  

Overview of India's Maritime Sector

  • Backbone of India’s trade and commerce, handling around 95% of India’s trade by volume and 70% by value. 
  • Port Infrastructure: 13 major ports and over 200 notified minor and intermediate ports. 
  • India is the 16th largest maritime nation in the world.
  • India occupies a key position on global shipping lanes.
    • Most cargo ships traveling between East Asia and destinations like America, Europe, and Africa traverse Indian waters, highlighting India’s strategic importance.

Strengths of India’s Maritime Sector

  • Aligning with Hong Kong Convention on Ship Recycling:
    • Indian recycling yards at Alang are compliant with the Convention’s standards. This positions India as a global ship recycling market.

Hong Kong Convention on Ship Recycling

  • Adoption: Adopted in May 2009.
  • Aim: To ensure ship recycling does not pose any unnecessary risks to human health and safety and the environment.
  • Objectives:
    • To address all the issues around ship recycling, including the probable presence of environmentally hazardous substances such as asbestos, heavy metals, hydrocarbons, ozone depleting substances and others.
    • To address concerns about working and environmental conditions in many of the world's ship recycling facilities.
  • Port Capacity:
    • India’s major ports are handling 820 MMT of cargo annually, which is a 47% growth since 2014. 
    • The overall port capacity has doubled to 1,630 MMT during the same period.
    • India’s port capacity is expected to increase six-folds to 10,000 MT per annum by 2047. This would make India one of the top 10 maritime countries in the world.
  • Mega Ports:
    • Jawaharlal Nehru Port, India’s largest shipping facility, has crossed 10 million TEUs (twenty-foot equivalent units) container handling capacity. 
    • Vadhavan Port in Maharashtra is set to become India’s largest container facility.
    • The proposed International Container Transshipment Port at Galathea Bay, Great Nicobar would capture transshipment trade along key global routes.
  • Modernisation driving efficiency gains:
    • According to the World Bank’s Logistic Performance Index (LPI) Report 2023, India is ranked 22nd in the “International Shipments” category, from the 44th position in 2018.
    • Operational Efficiency: 
      • Container dwelling time has now reduced to three days.
      • Vessel turnaround time has improved to 0.9 days.
    • Nine Indian ports feature in the World Bank’s Container Port Performance Index 2023. Visakhapatnam ranks among the top 20 globally.

Key Initiatives

  • Maritime India Vision (MIV) 2030: Accelerate growth of India’s maritime sector by developing world-class Mega Ports, transhipment hubs and infrastructure modernisation of ports. 
  • Sagarmala Programme:
    • Flagship initiative by the Ministry of Ports, Shipping, and Waterways.
    • Aimed at driving port-led development through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes.
    • Vision: Development of port infrastructure projects, coastal development, connectivity enhancement and reducing logistics cost. 
  • Inland Waterways Development:
    • The Inland Waterways Authority of India (IWAI) has identified 26 new national waterways, following feasibility studies to make them navigable. 
    • These new routes will provide an alternative mode of transportation, easing the load on congested road and rail networks and promoting sustainable, cost-effective transport options. 
  • Major Port Authorities Act, 2021 which grants greater autonomy to major ports.
  • Decarbonisation of Shipping sector: Initiatives to establish green hydrogen production hubs at Paradip, Tuticorin and Kandla ports.
  • Green Tug Transition Program (GTTP):
    • Aims to phase out conventional, fuel-based harbour tugs at Indian major ports.  These will be replaced with tugs powered by cleaner, sustainable fuels. 
    • The transition is set to be completed by 2040, ensuring a fully eco-friendly fleet across the country’s major ports.
  • National Logistics Portal (Marine): It is a single-window digital platform for all stakeholders including those engaged in cargo services, carrier services, banking and financial services, and government and regulatory agencies. 
  • Sagar Setu App: It facilitates seamless movement of goods and services in ports while substantially enhancing the ease of doing business.

Challenges

  • Infrastructural Issues: 
    • Port Congestion: Lack of equipment for managing the number of containers, ineffective operations, contribute to port congestion. 
    • Sub-optimal Transport Modal Mix: This is due to a lack of the infrastructure required for evacuation from both large and minor ports.
  • Adoption of sustainable fuel for transitioning to net-zero emissions. 
  • Spills or leaks from cargo loading and unloading and pollution from oil spills are widespread during port operations.
  • Availability of skilled labour for shipbuilding and repairs work. 
  • Port development initiatives often result in the displacement of people. E.g., Mundra in Gujarat, Gangavaram Port in Andhra Pradesh. 

Bharatiya Vayuyam Adhiniyam 2024

Context: India is one of the world's fastest growing civil aviation markets. The Bharatiya Vayuyan Adhiniyam 2024, a legislative reform aimed at modernising India’s aviation sector, came into effect from January 1, 2025.

Relevance of the topic:

Prelims: Key facts about Bharatiya Vayuyam Adhiniyam 2024; Cape Town Convention Bill.

Mains: Detailed question on issues in aviation question. 

About Bharatiya Vayuyam Adhiniyam 2024

  • Objective: The Act is aimed at modernising India’s aviation sector by replacing the Outdated Aircraft Act of 1934.
  • Major Features of the Act:
    • Empowered Director General of Civil Aviation (DGCA): DGCA has been provided with expanded jurisdiction over aircraft design, manufacturing, maintenance and operations, ensuring a centralised regulatory framework. 
    • Establishment of Bureau of Civil Aviation Security (BCAS): It focuses on establishment of a dedicated body exclusively for security matters in the aviation sector, enhancing safety of air travel. 
    • Aircraft Accidents Investigation Bureau: Creating an independent body for the investigation of aviation accidents and incidents, promoting transparency and accountability.
    • Streamlining leasing of Aircraft: will guarantee lessors rights to repossess their leased equipment.
    • Emergency powers to Central government: It empowers central government to take immediate actions to address crisis like;
      • Health pandemic affecting aviation
      • Cybersecurity threats
      • Situations requiring temporary suspension of air operations.
    • Compensation and Appeal Framework: It allows individuals and organisations to seek compensation for damages caused by government actions in the aviation sector.
    • Penalties for Non-Compliance: It includes monetary fines and other penalties on violation of aviation laws deterring companies and establishing a culture of accountability.
    • Alignment with International practices: It harmonises India’s aviation laws with international conventions like ‘International Telecommunication Convention’, for the aviation sector.
    • Encouragement for Domestic Manufacturing: By regulating the entire lifecycle of aircraft, the bill supports domestic production and maintenance, contributing to economic growth and self-reliance.

Cape Town Convention Bill

  • Recently, the Union Cabinet has approved the Protection and Enforcement of Interests in Aircraft Objects Bill, 2024 (Cape Town Convention Bill). The bill will be tabled in the next parliamentary session for consideration.
  • The proposed Bill will give primacy to the Cape Town Convention in case of conflict with any other domestic law, mainly the Insolvency and Bankruptcy Code (IBC), 2016.
  • Aim: To make the process easier for aircraft leasing companies to seize the planes of airlines that miss rental payments.
  • Significance:
    • Allow the aircraft leasing companies to reclaim their planes from Indian airlines in case of default on rental payments. 
      • Presently, the expensive assets like aircraft and engines of lessors, get stuck in India when Indian carriers default on paying rentals.
      • The lessors have to wage lengthy legal battles (in National Company Law Tribunal) to get their planes and engines back. E.g., the case of Wadia Group's erstwhile GoAir.
    • Expected to boost lessors' confidence in the Indian civil aviation space.
    • Expected to lower the lease rentals in India and help finance high-value mobile equipment, like airframes, helicopters and engines.

Cape Town Convention:

  • CTC is a global treaty that guarantees the rights of lessors to repossess leased high-value equipment such as aircraft, engines, and helicopters in case of payment defaults.
  • It was adopted at a conference in Cape Town in November 2001, under the International Civil Aviation Organisation (ICAO) and the International Institute for the Unification of Private Law (UNIDROIT).
  • India is a signatory to the convention (since 2008), but the Indian Parliament has not ratified the same. Hence, Indian laws presently prohibit such recovery once a company initiates bankruptcy proceedings
challenges in Indian Aviation

Major issues in Aviation Sector of India

  • Taxation challenge: The rejection of the proposal to include Aviation Turbine Fuel under the Goods and Services Tax regime means continued high tax on the fuel for the aviation sector.
  • Pilot fatigue: The industry faces challenges related to shortage of pilots that leads to extended hours of service by pilots. Such practices compromise passenger safety and the wellbeing of pilots.
  • Unsecure practices: Airlines violate safety protocols for landing by promoting Flap 3 landing instead of full flap landing, compromising with the safety of passengers.
  • Import dependency: The airlines sector is overdependent on imports of equipment for airlines including critical spare parts. 
  • High operational cost: Airlines are burdened with high user development fees, landing charges and parking fees adding more to their operational cost.
  • Infrastructure constraints: Major airports like Delhi, Mumbai, and Bengaluru operate at or near capacity causing delays and operational inefficiencies.

What more can be done?

  • Include Aviation Turbine Fuel (ATF) under GST to reduce costs.
  • Invest in airport capacity, especially in tier-2 and tier-3 cities.
  • Develop India as a hub for aircraft leasing with tax incentives.
  • Encourage adoption of AI, big data, and automation for efficiency.
  • Enhance training facilities to address pilot and workforce shortages.
  • Focus on improving passenger experience with better services and digital solutions.

Conclusion: The Bharatiya Vayuyan Adhiniyam, 2024 will foster indigenous manufacturing under Make in India, align with international conventions like the Chicago Convention and ICAO, and streamline regulatory processes. Hence, the Act is a major step to revolutionise India’s aviation sector, enhance safety, innovation, growth, and global compliance. 

Parbati-Kalisindh-Chambal Eastern Rajasthan Canal Project

Context: The Detailed Project Report (DRP) on Parbati-Kalisindh-Chambal Eastern Rajasthan Canal Project submitted by Rajasthan will be analysed by various Central agencies.

Relevance of the Topic: Prelims: Key facts about Parbati-Kalisindh-Chambal Eastern Rajasthan Canal Project; key facts about important locations. 

About Parbati-Kalisindh-Chambal Eastern Rajasthan Canal Project

  • PKC-ERCP is a river interlinking project aimed at addressing the water scarcity challenges in the eastern region of Rajasthan.
  • The project will cover 13 districts of Rajasthan and a population of approximately 2.5 crore people.
  • Key details:
    • Water source: ERCP plans to utilise the surplus water from the Chambal basin (particularly Kalisindh, Parvati and Chambal rivers) and redirect it to water-deficient sub-basins such as Banas, Gambhiri, Banganga, and Parbati.
    • Proposed infrastructure: Infrastructure will include a canal, Doongri Dam and associated reservoir.
  • Significance of ERCP: 
    • Water availability: Rajasthan is an arid and semi-arid region facing significant water shortages. ERCP is intended to improve availability in water scarce regions to reduce dependence on erratic rainfall.
    • Irrigation management: The project aims to boost irrigation facilities in 2 lakh hectares in the region, thereby increasing agricultural productivity and supporting the livelihood of farmers.
image 122

Challenges and concerns related to the project

  • Environmental impact: The project involves construction of the Doongri dam and reservoir which will lead to the submergence of regions of the Ranthambore Tiger Reserve. 
  • Restrain biodiversity movement- The reservoir will divide North Ranthambore and south Ranthambore leading the barrier in the migration corridor of species in reserve.
  • Interstate dispute: Neighbouring states like Madhya Pradesh have raised the sharing of Chambal water, this may lead to potential legal and political disputes regarding water sharing.
  • Delays in implementation: The project is witnessing delays as it does not have National project status. Further, environmental activism and poor political will is also delaying the project.
image 123

Way Forward

  • Securing National Project status: Intensifying dialogue with the central government to recognize ERCP as a national project may accelerate the development
  • Dialogue with neighbours: Rajasthan government should have proper dialogue with Madhya Pradesh government to build consensus over water sharing agreement of Chambal.
  • Alternate green corridor: Detailed Environmental Impact Assessment should be conducted to find an alternate green corridor for migration of the species in Ranthambore Tiger reserve.
  • Using technology: A proper planning of identifying water resources and long term impact should be predicted by using geo-spacial satellites and hydraulic modeling.
  • Community participation: ERCP will impact tribals like Van Gujjars of Ranthambore Tiger reserve region. These communities should be considered under planning of the project to evaluate the alternate livelihood for them. 
  • Focus on micro-irrigation: ERCP will only provide water but the focus should be on effective utilisation of the water. Therefore, micro-irrigation projects like sprinkler and drip should be promoted in the region.

About Tiger Reserves in Rajasthan

  • Ranthambore Tiger Reserve: 
    • Located in Sawai Madhopur region of Rajasthan.
    • It is nestled between Aravali in the West and Vindhya ranges in the East side.
    • Banas river flows through the reserve. Banas is a tributary of Chambal river.
  • Sariska Tiger Reserve (Alwar): Situated in the Aravalli Hills, Sariska is known for its efforts in tiger relocation and conservation. It also houses historical ruins like the Kankwari Fort.
  • Mukundra Hills Tiger Reserve (Kota): A newer reserve established in 2013, it spans the Mukundra Hills and aims to expand tiger habitats in Rajasthan.
  • Ramgarh Vishdhari: It is the fourth Tiger reserve of Rajasthan and 52nd Tiger reserve of the nation declared in 2022. Mej river, a tributary of Chambal flows through this region. Famous for Monitor Lizards.

Logistics Ease Across Different States (LEADS) Report, 2024

Context: The Ministry of Commerce and Industry has released the 6th edition of the ‘Logistics Ease Across Different States (LEADS) 2024’ Report, ranking various states on the parameter of logistics performance.

Relevance of the Topic: Prelims: Index and report based questions.

About LEADS

  • The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. 
  • The report divides states into:
    • Three broad criteria i.e., Achievers, Front movers and Aspirers, based on their performance. 
    • Groups: Coastal, Landlocked, North-Eastern, and Union Territories. 
  • The report ranks states on the basis of four key pillars -- Logistics Infrastructure, Logistics Services, Operating and Regulatory Environment, and the newly introduced Sustainable Logistics. 
Logistics Ease Across Different States

Performance of States (2024)

  • Achievers:
    • 13 States and Union Territories bagged the top rank of ‘achievers’, topped by Gujarat. 
    • Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, Delhi, Chandigarh, Haryana, Telangana, Uttar Pradesh, Uttarakhand, Assam and Arunachal Pradesh. 
  • Front Movers: Andhra Pradesh, Goa, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Dadar and Nagar Haveli, Jammu and Kashmir, Lakshadweep and Puducherry.
  • Aspirers: Kerala, West Bengal, Chhattisgarh, Jharkhand, Andaman and Nicobar and Ladakh.

Key Recommendations

Presently, India's logistics cost is 13-14 per cent of GDP which is extremely high.

  • LEAD Framework: Report suggests logistics sector to adopt LEAD framework – Longevity, Efficiency and Effectiveness, Accessibility and Accountability and Digitalisation of processes to transform the logistics sector.
  • Public Private Partnership: The report suggests public private partnership as the key tool to enhance logistic performance of India.
  • Technological support: The report claims AI, Big Data and satellite communication as vital tools to boost logistic performance.
  • Green Logistics initiatives: There is an advocacy to support green initiatives like hybrid fuel and electric vehicles for logistics to make a smooth transition in the logistic sector.

Logistics Sector in India

Context: Presently, the logistics sector in India is valued at $250 billion and contributes to 14% to India’s GDP. Given its crucial role in supply chains, experts remain bullish on the future growth prospects of the sector. 

Relevance of the Topic: Mains: Logistics Sector- Present scenario, Initiatives, Way Forward

Logistics Sector- Present scenario, Initiatives

Present Scenario of Logistics Sector in India

  • Higher logistics cost in India (12-14% of GDP), compared to 8-10% global benchmark.
  • Logistics cost slid 0.8-0.9 percentage points of GDP between FY14-22.
  • India is elevated to the 38th rank (among 139 nations) in the World Bank's Logistics Performance Index Report, 2023.
  • The logistics sector demonstrated resilience as it accelerated transition from unorganised to a structured industry.
image 211

Initiatives to boost the Logistics Sector in India

  • National Logistics Policy, 2022:
    • Aim: achieve ‘quick last-mile delivery', end transport-related challenges.
    • Logistics costs to be cut by half to be near global benchmarks by 2030.
    • India aims to be among the top 10 in the Logistics Performance Index by 2030.
  • PM Gati Shakti National Master Plan:
    • Essentially, a digital platform that brings 16 ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects.
  • Unified Logistics Interface Platform (ULIP):
    • Aim: to collapse all logistics and transport sector digital services into a single portal.
    • ULIP platform enables the industry players to get secure access to information related to logistics and resources available with various Ministries.
  • Logistics Data Bank:
    • It serves as a single-window container logistics visualization system, providing comprehensive tracking using container numbers. 
    • This system tracks containers between ports and their hinterlands, including Inland Container Depots (ICDs), Container Freight Stations (CFSs), port-associated parking plazas, toll plazas, railway stations, industrial corridors, SEZs, and empty yards, etc. during EXIM and domestic journeys.
  • National Logistics Portal- Marine (NLP-Marine):
    • NLP Marine is a one-stop platform aimed at connecting all the stakeholders of the logistics community using IT.
    • The activities of NLP Marine are categorized into four distinct verticals:
      • Carrier 
      • Cargo 
      • Banking and Finance 
      • Regulatory Bodies and Participating Government Agencies (PGAs). 

Role of GST in Logistics Sector

  • GST has played a crucial role in reducing logistics cost.
  • ‘One Nation One Tax’ regime has cut waiting time of trucks at inter-state borders, significantly reducing travel time by 30%.
  • This has reduced the logistics cost and increased the average distance covered by trucks. 

Further Scope for Logistics Development in India

  • Deeper digital adoption and intensified focus on risk management has resulted in transformative changes in the Indian logistics sector in 2024.
  • “China-plus-one-strategy” adopted by various multinational companies further reaffirms India’s critical position in global supply chains.
  • Supporting policies like giving Infrastructure status to ‘Warehousing’ and expanded FDIs accelerate the development of multi-client warehousing facilities.
  • The 11.1% rise in capital expenditure for infrastructure signals significant growth opportunities in the sector.

Way Forward

  • Need for skilling
    • To fully unlock the potential of the sector, enhancing workforce skills is crucial.
  • Capitalise on global trade opportunities
    • Policies strengthening the growth of e-Commerce, demand for faster delivery, export expansion driven by PLI schemes can accelerate goods movement.
  • Streamlining Government initiatives
    • Initiatives like UDAN (promoting regional air connectivity) and NLP, will cut logistics cost by 4-5%, enhancing competition in global markets.
  • Multi-modal connectivity
    • Strengthen Maritime connectivity projects to hasten transformation from land-based to coastal transportation.
    • Implement India Ports Bill for the development of the ports sector and increasing its share in logistics.

Logistics has a crucial role in supply chains — whether road, rail, air, waterways or warehouses. India’s ambition of becoming a $5 trillion economy by 2027, strongly depends on the development of the logistics sector. Government interventions like cutting costs and focusing on reskilling and upskilling can be a game-changer.

DISCOMs: Challenges and Reforms

Context: 2024 has been seminal for the power sector with the country meeting an unprecedented peak demand of 250 GW in a year. India also added around 30 GW of installed capacity in the last 12 months, three-fourths of which came from renewable energy (RE). However, debt sustainability of DISCOMs is the biggest challenge faced by the power sector. 

Relevance of the Topic: Mains: Challenges faced by DISCOMs & Way Forward. 

Background: 

  • The International Energy Agency (IEA) expects India’s power demand to grow at 4% annually till 2050. A robust power sector rests on a vibrant DISCOM ecosystem.
  • Distribution Companies (DISCOMs) act as the link between power producers and consumers, ensuring electricity distribution across the nation. 
DISCOM

Challenges faced by the DISCOMs

  • Higher AT&C losses (22%) on the account of transmission losses, commercial losses due to power theft, absence of metering, inefficiencies in bill collection. Global Average for AT&C losses is much lower at 8%.
  • Higher Cost of Power Procurement: Power procurement accounts for about 70% of costs incurred by DISCOMs. DISCOMs have entered into expensive and long-term thermal Power Purchase Agreements (PPAs). Also, delays and cost overruns in some projects have increased capital costs. 
  • Debt Unsustainability: The outstanding debt of Discoms stands at ₹7.14 lakh crore as of March 2023 and is likely to increase, as Discoms continue to grapple with ACS-ARR gap (The gap between Average Cost of Supply and the Average Revenue Realised). 
  • Lack of Autonomy: Political interference in fixing tariffs leading to lower tariffs on electricity. DISCOMS end up supplying electricity to households and the agriculture sector at subsidised prices leading to higher losses.
  • Higher dependence on State Governments: DISCOMs depend on state governments for subsidies. Delays in receiving subsidy reimbursements from the government add to liquidity stresses of DISCOMs.
  • Monopolisation: Presently, DISCOMs enjoy monopoly in distribution of electricity leading to absence of competition, higher inefficiencies and poor service-delivery.
  • Slow pace of Transmission Infrastructure: Of the 1,14,687 circuit km of (ckm) transmission lines and 776 GVA (Gigavolt-Ampere) substations to be added between April 2022-March 2027, just 28% and 20%, respectively, have been commissioned as of October 2024. 

Distribution Sector Reforms

  • UDAY Scheme: Aims at improving the financial position of DISCOMs. Under the scheme, states are supposed to take over 75% of the discoms’ debt and the DISCOMs were required to reduce AT&C losses to 15%.
  • Revamped Distribution Sector Scheme (RDSS):
    • RDSS has an outlay of Rs 3,03,758 crores over five years (2021-22 to 2025-26), with an estimated government budgetary support (GBS) of Rs 976.31 billion. 
    • Aim: To reduce AT&C losses on a pan-India level to 12-15% by 2024-25; reduce the average cost of supply-ave­rage revenue realised gap on a pan-In­­dia level to zero by 2024-25; and im­prove the quality, reliability and aff­or­da­bility of power supply to end-consumers. 
    • RDSS focuses on providing financial support for smart metering systems, distribution infrastructure upgra­des, training, capacity building etc.
  • Financial Support: A total of Rs. 1.4 lakh crores was provided to DISCOMs in 2022–23 by the central and state agencies. 
  • Private Participation and Competition in Distribution: Some of the states have promoted private participation in the DISCOMs through (a) Franchise Model and (b) Privatisation of DISCOMs.
    • Under the Franchise model, the private entity has no ownership over the distribution grid assets. The private party manages billing and revenue collection. Example: Bhiwandi, Maharashtra.
    • In case of privatisation, the private entity not only manages the billing and revenue collection but also owns the distribution grid. Example: Privatisation of Delhi Vidyut Board in 2002.
image 193

Way Forward

  • Tariff Reform and Direct Subsidy Transfer: Restructuring tariffs to reflect true cost of electricity generation and distribution is essential to ensure financial viability for DISCOMs. Direct transfer of tariff subsidies to beneficiaries may reduce undue financial burden on DISCOMs.
  • Autonomous Regulatory Bodies: Ensuring independence of regulatory bodies is crucial for effective tariff-regulation. Regulatory bodies should have authority to set tariffs based on actual costs and demand to encourage DISCOMs to operate efficiently.
  • Private Participation: Introducing competition among DISCOMs by allowing multiple-players to operate in a region can improve efficiency and bring in much-needed investment, innovation and management expertise.
  • Smart grid and metering can enable real-time monitoring of electricity usage, efficient load management, thereby, reducing transmission and distribution losses. It would also help in Peer-to-Peer energy trading and help utilities and consumers in efficient power utilisation.
  • Flexible PPAs: Electricity Regulatory Commissions should allow DISCOMs to make flexible, cost-effective procurement instead of continued lock-in under rigid and longer PPAs. 

Hence, addressing the challenges faced by DISCOMs is imperative to ensure sustainability and efficiency of India's power distribution system.