Nov – 24 – UPSC Current Affairs – PM IAS

1. Strategic Disinvestment and Economy: Government Approves BEML Disinvestment

Syllabus

• GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting.

Context

• The Cabinet Committee on Economic Affairs (CCEA) approved the strategic disinvestment of Bharat Earth Movers Limited (BEML), a ‘Miniratna’ Central Public Sector Enterprise (CPSE) under the Ministry of Defence.
• The approval involves the sale of a significant percentage of the government’s equity, along with the transfer of management control to a strategic buyer.
• The move aims to achieve the ambitious annual disinvestment target set by the Finance Minister in the Union Budget.

Main Body (Multi-Dimensional Analysis)

• BEML’s Strategic Importance:
  • BEML is a key supplier for the Defence (40%), Rail & Metro (40%), and Mining & Construction (20%) sectors.
  • It is vital for the ‘Atmanirbhar Bharat’ initiative, manufacturing critical defence equipment like Tatra truck-based missile launchers, and supplying metro rail coaches to almost every major city.
  • Disinvestment of a defence-linked PSU raises questions about national security implications and the risk of technology transfer to private hands.
• Rationale for Strategic Disinvestment:
  • Revenue Generation: Essential for bridging the fiscal deficit and funding social sector schemes and infrastructure development.
  • Efficiency Improvement: Injecting private sector management and capital is expected to improve BEML’s efficiency, modernise its production, and enhance competitiveness in the global market.
  • Focus on Core Competencies: Allows the government to exit non-core sectors and focus resources on strategic areas where government monopoly is essential.
• Disinvestment Mechanism:
  • The sale involves a two-stage auction process (Expression of Interest followed by financial bids).
  • The land assets have been separated through a new entity, BEML Land Assets Ltd (BLAL), to prevent the strategic buyer from acquiring valuable real estate, maximizing the value of the non-core assets for the government.

Positive, Negatives, Government Schemes

• Positive:
  • Capital Infusion: Private ownership will bring new technology, R&D funds, and global best practices into the company.
  • Market Liquidity: Supports the government’s efforts to increase the depth and breadth of the Indian capital market.
  • Increased Productivity: Expected to end bureaucratic inertia and boost output to meet the surging demand from the metro and defence sectors.
• Negatives:
  • National Security Risk: Concerns remain over the security clearances and long-term control of a private entity over sensitive defence technology and supply chains.
  • Labour Issues: Potential job losses and change in employee benefits, triggering resistance from trade unions.
  • Asset Valuation: Risk of undervaluing a profit-making CPSE, leading to a loss for the exchequer.
• Government Schemes:
  • National Monetization Pipeline (NMP): The disinvestment aligns with the broader NMP goal of unlocking value from public sector assets.
  • Atmanirbhar Bharat: The strategic buyer will be mandated to maintain or increase the level of indigenization in production.

Examples

• The BEML disinvestment follows the model of previous strategic sales like Air India and NILAM (Non-core Assets), which separated land and non-core assets to achieve a higher valuation.
• Its metro coach supplies are critical to the ongoing Metro Phase-II projects in cities like Bengaluru and Mumbai.

Way Forward

• Clear Security Clauses: The disinvestment agreement must contain stringent clauses for long-term government control over key defence technology, production lines, and security access.
• Employee Protection: Offer a comprehensive Voluntary Retirement Scheme (VRS) and robust labour law adherence to mitigate employee resistance.
• Transparent Valuation: Employ multiple, independent third-party valuers to ensure the final sale price is fair and transparent, avoiding future allegations of undervaluation.

Conclusion

• The strategic disinvestment of BEML is a bold economic decision driven by the need for fiscal prudence and operational efficiency. While it promises to unleash BEML’s full commercial potential, the government must address the legitimate concerns regarding national security and worker welfare to ensure a successful and beneficial transition.

Practice Mains Question

• Q: Strategic disinvestment of defence-linked Public Sector Undertakings (PSUs) like BEML is argued to be essential for economic efficiency but risks national security. Critically analyze this trade-off in the context of India’s ‘Atmanirbhar Bharat’ policy. (250 words, 15 marks)

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2. Science and Technology: ISRO Launches Dedicated Small Satellite Launch Vehicle (SSLV) Mission

Syllabus

• GS-3: Science and Technology—developments and their applications and effects in everyday life; Awareness in the fields of Space.

Context

• The Indian Space Research Organisation (ISRO) successfully launched its third Small Satellite Launch Vehicle (SSLV-D3), carrying a dedicated payload of small satellites for a private Indian space start-up and a university.
• The launch signifies the SSLV’s transition from a developmental phase to an operational vehicle, specifically catering to the burgeoning demand for Small Satellite launches globally and domestically.

Main Body (Multi-Dimensional Analysis)

• Small Satellite Launch Vehicle (SSLV):
  • Capability: Designed to inject satellites weighing up to 500 kg into a Low Earth Orbit (LEO) of around 500 km.
  • Key Feature (Quick Turnaround): The SSLV is a “launch-on-demand” vehicle. Unlike the PSLV, it can be assembled in just 72 hours with minimal personnel, drastically reducing launch time and cost.
  • Cost-Effectiveness: Its simple, modular design, built largely with solid fuel and featuring fewer stages, makes it the world’s most cost-effective launcher in its category.
• Significance for Private Sector and Space Economy:
  • ANTRX and NSIL: The mission demonstrates the viability of NewSpace India Limited (NSIL), the commercial arm of ISRO, in securing payloads from private entities and foreign clients.
  • Level Playing Field: The operationalization of SSLV provides a dedicated, accessible, and affordable launch platform for Indian private space startups, fostering innovation and competition.
  • Global Market Share: The SSLV will help India capture a larger share of the global small satellite launch market, which is currently dominated by players like SpaceX and Rocket Lab.
• Indigenous Development and Future:
  • SSLV is crucial for constellations of LEO internet satellites and is entirely indigenous. Its success paves the way for the full transfer of its production and operationalization to the Indian private sector.

Positive, Negatives, Government Schemes

• Positive:
  • Commercial Viability: Makes India a globally competitive player in the small satellite launch segment.
  • Ease of Launch: Simplifies the launch process for university research and technological demonstrations due to low cost and short notice.
  • Employment: Boosts the Indian private space industry and creates high-skilled jobs in manufacturing and launch operations.
• Negative:
  • Payload Limitation: Cannot carry heavy communication or remote sensing satellites, which still require the workhorse PSLV or the LVM3.
  • Infrastructure: Requires development of dedicated, high-volume launch infrastructure, such as the new SSLV Launch Complex (SLC) at Kulasekarapattinam, Tamil Nadu.
• Government Schemes:
  • IN-SPACe: The promotion of SSLV directly supports the IN-SPACe mechanism, which enables and regulates the participation of private non-government entities in the space sector.
  • Space Policy 2023: Aligns with the policy’s goal of encouraging private sector participation in the entire value chain of the space economy.

Examples

• The payload on SSLV-D3 included a CubeSat designed by a private start-up for Earth observation and a student satellite focused on atmospheric studies.
• The mission is analogous to the launch of the first successful PSLV missions in the 1990s, marking a crucial step towards launcher maturity.

Way Forward

• Full Production Transfer: Expedite the full transfer of SSLV manufacturing and launch operations to an industry consortium to free up ISRO for R&D on next-generation systems (e.g., Reusable Launch Vehicles – RLV).
• Global Marketing: Aggressively market the SSLV’s short turnaround time and low cost to secure international launch contracts.
• SLC Completion: Fast-track the construction and operationalization of the new SSLV launch complex in Tamil Nadu to meet anticipated high demand.

Conclusion

• The successful dedicated SSLV launch is not merely a technological achievement; it is a declaration of India’s commitment to making the space sector accessible, commercial, and globally competitive. It is the rocket that will truly democratize India’s space aspirations, empowering both ISRO and the emerging private space industry.

Practice Mains Question

• Q: The operationalization of the Small Satellite Launch Vehicle (SSLV) is a game-changer for India’s space economy. Analyze how the SSLV enables the participation of private non-government entities (NGEs) and helps India achieve greater market share in the global space sector. (250 words, 15 marks)

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3. Constitutional Governance: Attorney General’s Opinion on EWS Reservation Review

Syllabus

• GS-2: Indian Constitution—significant provisions and basic structure. Mechanisms, laws, institutions and Bodies constituted for the protection and betterment of vulnerable sections.

Context

• The Attorney General (AG) for India submitted an opinion to the Supreme Court regarding the petitioners’ request for a review of the 103rd Constitutional Amendment Act, which introduced the 10% reservation for Economically Weaker Sections (EWS).
• The AG’s opinion primarily focused on the limited scope of review under Article 137 and defended the government’s criteria for identifying the EWS beneficiaries.

Main Body (Multi-Dimensional Analysis)

• EWS Constitutional Basis (103rd Amendment):
  • The Amendment inserted Clauses 6 to Article 15 and 16, enabling the State to make special provisions for the advancement of any economically weaker sections of citizens, including reservation up to 10% in education and public employment.
  • The Supreme Court, in its 2022 majority verdict (3:2), upheld the amendment’s validity, ruling that it does not violate the Basic Structure of the Constitution.
• Attorney General’s Stance (The Opinion):
  • Limited Review Scope: The AG argued that a review petition under Article 137 can only be entertained if there is an error apparent on the face of the record, not merely because the petitioners disagree with the previous verdict.
  • Exclusion of SC/ST/OBC: The AG reiterated that the exclusion of persons belonging to already reserved categories (SC/ST/OBC) from the EWS quota is a constitutionally valid classification, as the EWS quota is an independent form of affirmative action based solely on economic criteria.
  • Criteria Validation: The opinion supported the government’s criteria (e.g., the annual income ceiling of ₹8 lakh), arguing it was based on the need to identify the “poorest of the poor” among the general category for whom no prior affirmative action existed.
• The Conflict: Equity vs. Economic Basis:
  • The dissent in the original judgment and the review petition argue that reservation should only be based on social and educational backwardness, as established in the Indra Sawhney (1992) case.
  • The EWS reservation breaks the 50% ceiling rule and introduces an economic criterion as the sole basis for reservation, shifting the paradigm of affirmative action in India.

Positive, Negatives, Government Schemes

• Positive:
  • Affirmative Action for Poor: Provides a mechanism for affirmative action for the economically disadvantaged sections of society who are outside the existing reservation framework.
  • Judicial Finality: The AG’s opinion aims to restore judicial finality to the issue, reducing litigation and allowing the executive to focus on effective implementation.
• Negative:
  • 50% Ceiling Erosion: Critics argue that validating the EWS quota permanently erodes the 50% reservation ceiling, potentially leading to further compartmentalization and reservation demands.
  • Exclusionary Nature: The exclusion of EWS persons belonging to SC/ST/OBC is seen as discriminatory by some, particularly those who are economically poor within these reserved classes.
• Government Schemes:
  • The EWS reservation is implemented across central educational institutions (like IITs, IIMs) and central government jobs, directly impacting access to quality education and employment.

Examples

• The EWS quota was first challenged by medical aspirants during the NEET-PG counselling process, highlighting the immediate impact of the policy on educational opportunities.
• The Indra Sawhney judgment is the locus classicus for reservation policy in India, and the EWS amendment is seen as the first successful constitutional modification to its core tenets.

Way Forward

• Socio-Economic Data: The government should continuously monitor and update the EWS criteria (e.g., the ₹8 lakh income limit) based on regular, scientific socio-economic data collection to ensure the benefits reach the truly deserving.
• Transparency in Implementation: Ensure that the implementation of the EWS quota, particularly by state governments, adheres strictly to the constitutional principles upheld by the SC.
• Focus on Non-Reservation Solutions: Increase focus on high-quality public education and job creation to reduce the social and political demand for reservation as the only avenue for upward mobility.

Conclusion

• The Attorney General’s opinion reinforces the constitutional validity of the EWS quota, defending its unique reliance on economic criteria and its independent standing from the existing social reservation system. While this may bring temporary stability, the debate over the EWS amendment continues to challenge the foundational principles of reservation and the Basic Structure doctrine.

Practice Mains Question

• Q: The 103rd Constitutional Amendment fundamentally altered the basis of reservation in India. Analyze the arguments supporting the EWS quota and critically discuss the challenges it poses to the principle of social equity and the 50% reservation ceiling. (250 words, 15 marks)

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4. International Relations: India-UK FTA Implementation and Strategic Alignment

Syllabus

• GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests.

Context

• Following the signing of the India-UK Comprehensive Economic and Trade Agreement (CETA/FTA) in July 2025, the focus has shifted to the implementation phase and leveraging the deal for broader strategic cooperation.
• The FTA, signed by Prime Minister Modi and his UK counterpart, is one of the most significant trade pacts for both nations and is projected to double bilateral trade to $120 billion by 2030.
• News reports now focus on the post-FTA challenges, particularly the missed opportunity in liberalizing key services sectors like legal services.

Main Body (Multi-Dimensional Analysis)

• Economic Impact of the FTA:
  • Indian Gains (Goods): Eliminates tariffs on 99% of Indian exports to the UK by value, particularly in labour-intensive sectors like textiles, leather, footwear, and clothing, boosting exports and job creation.
  • UK Gains (Goods): Significant tariff reductions on high-value British goods like Scotch whisky, cars, and medical devices, making them cheaper for Indian consumers.
  • Investment Boost: The agreement has already resulted in significant new investments from Indian companies into the UK, enhancing investor confidence and market integration.
• Strategic Alignment (Beyond Trade):
  • The FTA is a pillar of the larger India-UK 2030 Roadmap, which encompasses political, defence, and security cooperation. The UK views India as a critical partner in its Indo-Pacific tilt policy.
  • Defence and Security: The strategic partnership includes enhanced collaboration on defence manufacturing, co-development of technology, and maritime security in the Indian Ocean Region.
• Implementation Challenges (Services Sector):
  • Legal Services Miss: Despite the FTA, the full liberalization of the Indian legal sector for UK firms was not achieved. The Bar Council of India (BCI) has only allowed limited access for foreign lawyers in non-litigious matters, which is currently subject to legal challenges. This limits the potential for UK service sector exports and skill transfer.
  • Regulatory and Standards Alignment: The two sides must now work on aligning product standards and technical regulations to fully realize the benefits of tariff reduction.

Positive, Negatives, Government Schemes

• Positive:
  • Diversification of Trade: Reduces India’s reliance on traditional trading partners and links India to a major global economy post-Brexit.
  • Global Arbitration Hub: India is actively promoting itself as a global arbitration hub (e.g., India International Arbitration Centre – IIAC), which will be supported by the new trade framework.
  • Business Mobility: Includes provisions for easier movement of professionals, a key demand from India’s IT and services sectors.
• Negatives:
  • Competition for Domestic Industries: Indian manufacturers, particularly in sensitive sectors like automobiles, face increased competition from high-quality UK imports.
  • Trade Deficit Risk: While a significant boost to exports is expected, the long-term impact on the overall trade balance must be monitored.
• Government Schemes:
  • Atmanirbhar Bharat: The FTA encourages UK companies to invest in India’s manufacturing ecosystem, aligning with the “Make in India” component of the Atmanirbhar Bharat initiative.

Examples

• The deal provides a major boost to the Indian apparel industry, enabling a more competitive price point for garments exported to the UK market.
• UK’s attempt to liberalize legal services echoes similar demands made by other trading blocs, such as the EU and US.

Way Forward

• Focus on Non-Tariff Barriers: Both governments must prioritize the reduction of non-tariff barriers, mutual recognition agreements (MRAs), and streamlining customs procedures to ensure smooth trade flow.
• Addressing Services Liberalization: India should fast-track the resolution of regulatory and legal challenges regarding the entry of foreign legal and financial services firms, unlocking a huge potential area of cooperation.
• SMEs Outreach: Launch a dedicated outreach program to educate Small and Medium Enterprises (SMEs) in both countries on how to utilize the FTA provisions effectively.

Conclusion

• The India-UK FTA is a diplomatic and economic triumph that cements a new era of Comprehensive Global Strategic Partnership. While the immediate focus is on tariff reduction for goods, the long-term success will depend on how effectively both nations integrate their service sectors and deepen cooperation across the strategic security landscape.

Practice Mains Question

• Q: The India-UK FTA is viewed as a landmark agreement. Discuss its potential to boost India’s merchandise exports and critically evaluate the challenges and missed opportunities in liberalizing the bilateral trade in services. (250 words, 15 marks)

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5. Social Justice: Proposal for Comprehensive National Policy on Mental Health

Syllabus

• GS-2: Issues relating to development and management of Social Sector/Services relating to Health. Welfare schemes for vulnerable sections of the population.

Context

• In the wake of increasing recognition of mental health as a critical public health concern—reinforced by the Supreme Court’s 2025 judgment that recognizes mental health as an essential component of the Right to Life (Article 21)—a new proposal for a Comprehensive National Policy on Mental Health is being drafted.
• This move is designed to address the vast treatment gap (over 70% in many severe mental illnesses) and the persistent issue of stigma.

Main Body (Multi-Dimensional Analysis)

• Current Frameworks and Gaps:
  • Legal Backbone: The Mental Healthcare Act (MHA), 2017, provides a rights-based framework, decriminalizes suicide attempts, and mandates accessible and affordable care.
  • Programmatic Backbone: The National Mental Health Programme (NMHP) and its component, the District Mental Health Programme (DMHP), aim to integrate mental health into general healthcare and operate in 767 districts.
  • Digital Backbone: The Tele-MANAS initiative (National Tele Mental Health Programme) provides a 24×7 helpline in 20 languages, acting as a crucial first line of digital care.
  • The Gap: Despite these, the annual budget allocation remains low (around 1% of the total health budget), leading to a severe shortage of mental health professionals (less than 1 psychiatrist/100,000 population) and inadequate infrastructure.
• Key Components of the Proposed Policy:
  • Integration and Decentralization: Focus on shifting care from large, often custodial, psychiatric hospitals to community-based models by strengthening services at Ayushman Arogya Mandirs (upgraded Primary Health Centres).
  • Workforce Capacity Building: Introducing incentives, scholarships, and short-term training for general physicians, nurses, and community health workers to detect and manage common mental illnesses (task-sharing approach).
  • Preventive and Promotive: Mandating mental health education in schools and colleges, and implementing workplace mental health policies to address job stress and burnout, as recommended by the Economic Survey 2024-25.
• Constitutional and Rights-Based Mandate:
  • The Supreme Court’s Article 21 ruling elevates mental healthcare to a constitutional right, compelling the state to ensure its provision and making it a fundamental aspect of human dignity.

Positive, Negatives, Government Schemes

• Positive:
  • De-stigmatization: A dedicated policy with high-level backing will bolster awareness campaigns and help normalize seeking psychological support.
  • Early Intervention: Focus on schools and workplaces ensures early detection and prevention, reducing the severity and long-term disability of mental illnesses.
  • Rights Compliance: Ensures the country aligns with the UN Convention on the Rights of Persons with Disabilities (UNCRPD), which India is a signatory to.
• Negatives:
  • Implementation Bottlenecks: The DMHP has suffered historically from poor funding and lack of trained personnel; a new policy must overcome these ground realities.
  • Urban-Rural Divide: The majority of mental health professionals are concentrated in urban areas, making rural access critically difficult despite digital initiatives.
• Government Schemes:
  • Ayushman Bharat: Mental health services are now part of the Comprehensive Primary Health Care package delivered at Ayushman Arogya Mandirs.
  • National Suicide Prevention Strategy (NSPS): The policy will complement the NSPS by focusing on structural interventions to reduce the risk factors for self-harm.

Examples

• The success of Tele-MANAS (over 2.5 million calls handled by August 2025) demonstrates the power of digital solutions in bridging the accessibility gap.
• Training Accredited Social Health Activists (ASHAs) under the DMHP to identify common symptoms is a key example of the task-sharing approach.

Way Forward

• Earmarked Funding: The policy must commit to a significant and non-lapsable increase in the health budget dedicated to mental healthcare (targeting a gradual increase towards 5% of the health budget).
• Multi-Sectoral Collaboration: Establish a statutory body to ensure inter-sectoral coordination between Health, Education, Labour, and Social Justice Ministries for holistic implementation.
• Localised Research: Fund research into culturally sensitive and evidence-based Indian models of mental health support to make interventions more relatable and effective.

Conclusion

• The proposed Comprehensive National Policy on Mental Health is a crucial step towards transforming mental healthcare in India from a neglected area to a national priority. Its success hinges on robust financing, rapid human resource development, and a sustained community-wide effort to dismantle the entrenched stigma.

Practice Mains Question

• Q: Despite the rights-based framework provided by the Mental Healthcare Act, 2017, India faces a huge mental health crisis. Discuss the major gaps in the existing mental healthcare infrastructure and recommend measures for a robust, community-centric National Mental Health Policy. (250 words, 15 marks)

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6. Defence and Security: India-US Joint Exercise ‘Vajra Prahar’ Conclusion

Syllabus

• GS-3: Security challenges and their management in border areas; various Security forces and agencies and their mandate.
• GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Context

• The 16th edition of the annual bilateral joint special forces exercise ‘Vajra Prahar’ between the Indian Army Special Forces and the US Army Special Forces (Green Berets) was successfully concluded in Idaho, USA, in November 2025.
• The exercise is a critical component of the rapidly deepening India-US Major Defence Partnership, focusing on unconventional warfare, counter-terrorism, and joint special operations planning.

Main Body (Multi-Dimensional Analysis)

• Exercise Profile and Objective:
  • Focus: High-intensity tactical drills, exchange of best practices, and enhancement of interoperability in a desert/semi-desert environment, reflecting a shift to a broader range of operational terrains.
  • Drills Conducted: Included joint team mission planning, reconnaissance missions, employment of Unmanned Aerial Systems (UAS), actions of a Joint Terminal Attack Controller (JTAC), and psychological warfare in special operations.
  • Significance of Special Forces: Special Forces operations are crucial for low-footprint, high-impact missions, counter-insurgency, and unconventional warfare scenarios, which are highly relevant in the contemporary security environment.
• Enhancing Strategic Partnership:
  • Interoperability: The exercise allows Indian and US forces to integrate their command, control, and communication systems, which is vital for joint operations in potential future multinational missions (e.g., UN Peacekeeping or Humanitarian Assistance and Disaster Relief – HADR).
  • Major Defence Partner Status: ‘Vajra Prahar’, along with other key exercises like ‘Yudh Abhyas’ (Army-to-Army) and ‘Malabar’ (Naval), is a tangible demonstration of the ‘Major Defence Partner’ status granted to India by the US.
• Geopolitical Relevance (Indo-Pacific):
  • The training on joint special operations is increasingly important in the context of the Indo-Pacific strategy, where flexible, rapid-response forces are needed to address emerging security challenges, including maritime threats and counter-piracy.

Positive, Negatives, Government Schemes

• Positive:
  • Skill Transfer: Indian Special Forces gain exposure to US special operations tactics, modern equipment, and highly evolved joint planning procedures.
  • Deterrence: The visible display of military cooperation sends a strong signal to adversaries regarding the depth of the strategic alliance.
  • Personnel Exchanges: Fosters bonhomie and deepens personal ties between the elite military units of the two democracies.
• Negative:
  • Strategic Autonomy Concern: Critics sometimes raise concerns that deepening military dependence on the US could impact India’s long-held policy of Strategic Autonomy.
  • Technology Transfer: Sharing of sensitive special forces tactics and equipment protocols requires careful management and security clearances.
• Government Schemes:
  • The exercise is directly supported by the framework of the Defence Technology and Trade Initiative (DTTI) and is a foundation for future defence procurement and co-development.

Examples

• The exercise utilized sophisticated US equipment and digital tools, providing Indian troops with practical experience in advanced communication and targeting systems.
• The focus on the JTAC role is critical for ensuring seamless coordination between ground troops and air support, a vital requirement in modern warfare.

Way Forward

• Joint Doctrine: Translate the lessons learned from ‘Vajra Prahar’ into a formalized joint Special Forces doctrine that can be implemented across various theatres.
• Tri-Service Integration: Increase the complexity of future exercises to include elements from both navies and air forces to build a true tri-service special operations capability.
• Regional Role: The India-US special forces cooperation can be leveraged to address security training and capability building for partner nations in the Indian Ocean Region.

Conclusion

• The successful conclusion of ‘Vajra Prahar’ underscores the unwavering commitment of India and the US to a comprehensive global strategic partnership, particularly in the critical domain of special operations. It serves as a vital platform for enhancing combined combat capabilities, ensuring both nations are prepared to tackle future security challenges across a diverse spectrum of environments.

Practice Mains Question

• Q: Joint military exercises like ‘Vajra Prahar’ are a key indicator of the deepening India-US Comprehensive Global Strategic Partnership. Analyze the significance of such special forces exercises for India’s security preparedness and its role in the Indo-Pacific strategy. (250 words, 15 marks)

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7. Environment and Ecology: Carbon Credit Trading Scheme (CCTS) Targets Notified

Syllabus

• GS-3: Conservation, environmental pollution and degradation, environmental impact assessment. Infrastructure: Energy.

Context

• The Government of India has officially notified the first set of emission intensity targets for key industrial sectors under the new Carbon Credit Trading Scheme (CCTS), operationalizing the system envisioned in the Energy Conservation (Amendment) Act, 2022.
• This marks a significant transition from the previous Perform, Achieve and Trade (PAT) scheme by explicitly introducing a market-based mechanism for Greenhouse Gas (GHG) emission reduction.
• The CCTS is expected to be one of the world’s largest emissions trading systems in terms of covered volume.

Main Body (Multi-Dimensional Analysis)

• The New Mechanism (Baseline-and-Credit):
  • The CCTS uses a baseline-and-credit system, where targets are set for emission intensity (GHG per unit of output, measured in tonnes of co2 per tonne of product), rather than an absolute cap on total emissions.
  • Credit Creation: Industrial units that outperform their notified target (i.e., emit less than the benchmark) earn tradable Carbon Credit Certificates (CCCs).
  • Penalty/Compliance: Units that exceed their targets must purchase equivalent CCCs from the market or face a financial penalty (environmental compensation), providing a strong economic incentive for cleaner production.
• Scope and Coverage:
  • Initial Sectors: The first compliance cycle covers energy-intensive industrial sectors, including Aluminium, Cement, Pulp and Paper, and Chlor-Alkali, impacting over 280 plants. Five more sectors are expected to be notified soon, covering a total of around 740 entities.
  • Emissions Covered: The scheme applies to both direct (Scope 1 – fuel combustion/industrial processes) and indirect (Scope 2 – electricity/heat consumption) emissions.
• Geopolitical Significance:
  • The domestic carbon market prepares Indian exporters to adapt to international mechanisms like the European Union’s Carbon Border Adjustment Mechanism (CBAM), which taxes carbon-intensive imports.
  • It is a critical policy instrument for achieving India’s Nationally Determined Contribution (NDC) targets under the Paris Agreement, specifically reducing the emission intensity of GDP by 45% by 2030 from 2005 levels.

Positive, Negatives, Government Schemes

• Positive:
  • Cost-Effectiveness: Market-based mechanisms like CCTS incentivize innovation and allow firms to choose the most cost-effective method of pollution reduction.
  • Investment in Green Technology: Generates an internal revenue stream for companies investing in cleaner and energy-efficient technologies.
  • Transparency: The trading mechanism requires robust and transparent Continuous Emission Monitoring Systems (CEMS) data.
• Negatives:
  • Intensity vs. Absolute: Focusing on intensity means that if production volume increases significantly, the absolute level of emissions can still rise, despite the reduction per unit.
  • Market Manipulation: Any new trading scheme is vulnerable to volatility and manipulation, requiring strong regulatory oversight.
• Government Schemes:
  • PAT Scheme: CCTS builds upon the foundational experience of the PAT scheme, transitioning the focus from energy efficiency to direct carbon emissions.
  • Voluntary Offset Mechanism: The scheme includes a voluntary offset component, allowing non-covered entities to participate and increase market liquidity.

Examples

• The operational framework draws lessons from the successful pilot Emissions Trading Scheme (ETS) for Particulate Matter (PM) in Surat and Ahmedabad, Gujarat, which demonstrated a 20-30% reduction in PM emissions among participating firms.
• Companies like UltraTech Cement and Hindalco are among the entities falling under the first compliance cycle, making them responsible for early compliance.

Way Forward

• Robust Regulatory Body: Establish a single, powerful regulatory body with clear jurisdiction over the joint administrators (Ministry of Power, MoEFCC, and BEE) to ensure market stability and prevent non-compliance.
• Capacity Building: Invest in training for industry professionals and auditors to accurately monitor, report, and verify GHG emissions, which is crucial for the integrity of the market.
• Expansion of Scope: Gradually expand the CCTS coverage to include more sectors and potentially shift towards an absolute cap-and-trade system in the long run to ensure absolute emission reduction.

Conclusion

• The notification of CCTS targets is a watershed moment for India’s climate policy, moving the country toward a sophisticated, market-driven approach to decarbonization. It represents an ambitious and crucial step not only for meeting India’s global climate commitments but also for improving the long-term competitiveness and environmental performance of its core industries.

Practice Mains Question

• Q: India’s Carbon Credit Trading Scheme (CCTS) marks a significant evolution in its climate policy. Examine how the ‘baseline-and-credit’ mechanism of CCTS differs from the previous ‘command-and-control’ approaches and its role in achieving India’s NDC targets. (250 words, 15 marks)

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8. Governance and Development: Pradhan Mantri Awas Yojana (PMAY) Phase II Accelerates

Syllabus

• GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population.

Context

• The Ministry of Housing and Urban Affairs (MoHUA) and the Ministry of Rural Development have accelerated the implementation of the next phase of the Pradhan Mantri Awas Yojana (PMAY), known as PMAY-Urban 2.0 and PMAY-Gramin (G) 2025-2029.
• The renewed mission aims to cover the remaining eligible beneficiaries and achieve the government’s extended goal of “Housing for All” by focusing on last-mile delivery, technological integration, and convergence with other schemes.

Main Body (Multi-Dimensional Analysis)

• The Scope of Phase II:
  • Extended Target: PMAY-G has been extended with a new target to construct over 2.95 crore more houses between FY 2024-25 and 2028-29. PMAY-U 2.0 continues with the mission to sanction 1 crore houses for the urban poor.
  • Focus on Inclusion: The new phase places a special emphasis on including the most vulnerable populations, such as transgenders, single women, persons with disabilities, and street vendors (identified under PMSVANidhi), ensuring social equity in housing allocation.
• Technological and Implementation Innovations:
  • AwaasApp and Geo-tagging (PMAY-G): The mandatory use of a mobile application for real-time monitoring and geo-tagging of houses at various construction stages has been scaled up to ensure transparency, prevent fund misuse, and expedite installment releases.
  • BLC and AHP (PMAY-U): The two key verticals—Beneficiary-Led Construction (BLC), where individuals receive financial aid, and Affordable Housing in Partnership (AHP), where state agencies build houses—have been streamlined for faster approval.
  • Angikaar 2025 Campaign: A recent intensive, two-month nationwide campaign was launched to fast-track the verification of applications and completion of already sanctioned houses.
• Convergence and Holistic Development:
  • PMAY is strategically converged with schemes like MGNREGA (for providing 90 days of unskilled labour wages to PMAY-G beneficiaries) and the Swachh Bharat Mission (for a grant of ₹12,000 for toilet construction), ensuring a holistic living environment.
  • PM Surya Ghar: Muft Bijli Yojana: Efforts are underway to link PMAY-U beneficiaries with the solar rooftop scheme to promote energy self-sufficiency and reduce electricity bills.

Positive, Negatives, Government Schemes

• Positive:
  • Poverty Alleviation: Pucca houses provide economic security, better health outcomes, and a significant boost to the dignity of the poor.
  • Employment Generation: The construction phase is a major driver of employment in the rural and urban construction sectors.
  • Women Empowerment: Allocation of houses is often in the name of the female head of the household or jointly, enhancing women’s property rights.
• Negatives:
  • Land Availability: Acquisition of land, particularly in densely populated urban areas for AHP and ISSR (In-Situ Slum Redevelopment), remains a critical bottleneck.
  • Quality Control: Ensuring the quality of construction, especially in BLC, against strict deadlines and material inflation is a recurring challenge.
• Government Schemes:
  • CRGFTLIH: The Credit Risk Guarantee Fund Trust for Low Income Housing provides guarantees to lending institutions, facilitating home loans for EWS/LIG beneficiaries.
  • Affordable Rental Housing Complexes (ARHCs): A sub-scheme under PMAY-U 2.0 for migrant workers and urban poor to provide affordable rental accommodation.

Examples

• Financial releases in November 2025 across multiple states (e.g., Tamil Nadu, Gujarat) show the aggressive pace of fund disbursement under PMAY-U 2.0.
• Bihar’s milestone of providing over 39 lakh homes in the last decade demonstrates the scale of the PMAY-G component.

Way Forward

• Streamlining Land Allotment: State governments must expedite the free allotment of land, especially for BLC beneficiaries in rural areas, to reduce project delays.
• Technology Innovation: Incentivize the use of rapid, disaster-resilient, and cost-effective construction technologies to speed up delivery and reduce reliance on traditional, slow construction methods.
• Social Audit and Grievance Redressal: Strengthen the social audit mechanisms and local grievance redressal cells to ensure only genuine beneficiaries are included and quality is maintained.

Conclusion

• PMAY’s renewed phase underscores the government’s unwavering commitment to making safe and permanent housing a reality for the marginalized across the country. By leveraging technology, fostering convergence, and improving ground-level monitoring, the scheme is on track to deliver its promises, fundamentally transforming the quality of life and dignity of the poorest segments of Indian society.

Practice Mains Question

• Q: The Pradhan Mantri Awas Yojana (PMAY) has adopted a multi-pronged approach to address the housing deficit. Analyze the significance of technological integration (e.g., AwaasApp, Geo-tagging) and scheme convergence in improving the transparency and efficacy of PMAY. (250 words, 15 marks)