Dec 19 – UPSC Current Affairs – PM IAS

1. The SHANTI Bill, 2025: Privatizing India’s Nuclear Sector

  • Syllabus: GS Paper III: Science & Technology (Developments and their applications); Infrastructure (Energy); GS Paper II: Government Policies and Interventions.
  • Context: On December 19, 2025, the Lok Sabha passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill. This landmark legislation amends the Atomic Energy Act of 1962 to permit private and foreign investment in nuclear power generation for the first time.

Multi-Dimensional Analysis

  • Energy Sovereignty & Net Zero: India aims for 100 GW of nuclear capacity by 2047 to meet its Net Zero 2070 targets. Nuclear energy provides “base-load” power that solar and wind cannot, ensuring grid stability. This Bill shifts nuclear energy from a state monopoly to a market-driven sector.
  • The Liability Debate: A contentious aspect is the revision of the Civil Liability for Nuclear Damage Act (2010). The Bill introduces a liability cap for operators at ₹3,000 crore, while shifting significant responsibility away from suppliers. Critics argue this protects foreign equipment manufacturers at the potential cost of public safety.
  • Technology & SMRs: The focus is on Small Modular Reactors (SMRs). These are easier to finance, have shorter gestation periods, and are safer for decentralized deployment near industrial clusters. The Bill facilitates “Bharat-designed” 220 MW Pressurized Heavy Water Reactors (PHWRs) for private adoption.
  • Strategic & Security Implications: Nuclear fuel remains a “strategic” asset. The Bill maintains strict Department of Atomic Energy (DAE) oversight over the nuclear fuel cycle, ensuring that “Dual-Use” technology does not leak and that waste management remains a sovereign responsibility.
  • Fiscal Perspective: Nuclear plants are capital-intensive. By allowing private equity and FDI, the government aims to reduce the burden on the exchequer, which has been the primary bottleneck for the past three decades.

Tabulation: Analysis and Schemes

FeatureAnalysis
PositivesRapid capacity expansion (Target 100 GW); Decarbonization of heavy industry; Global investment influx; Development of indigenous SMR supply chains.
NegativesConcerns over the ₹3,000 Cr liability cap vs. actual disaster costs (Fukushima/Chernobyl); Lack of public consultation in plant siting; Regulatory capacity of AERB to monitor private players.
Govt. SchemesNet Zero 2070 Mission, PM-Suryodaya (Complementary), National Mission on SMRs.
  • Example: The Jaitapur Nuclear Power Project, stalled for years due to liability issues, is expected to see immediate movement under the new “Supplier-Friendly” framework.
  • Way Forward: Strengthening the Atomic Energy Regulatory Board (AERB) into an independent statutory body and creating a “Nuclear Insurance Pool” that reflects modern inflationary costs are essential to build public trust.
  • Conclusion: The SHANTI Bill is a “Nuclear 2.0” moment for India, balancing the desperate need for clean energy with the complex realities of global liability and private efficiency.

Mains Practice Question: “The SHANTI Bill 2025 seeks to bridge the gap between India’s energy hunger and its climate commitments, but it brings the ghost of nuclear liability to the forefront.” Critically examine. (250 Words)


2. India–Oman CEPA: Anchoring the “Act West” Policy

  • Syllabus: GS Paper II: Bilateral, regional and global groupings and agreements involving India; India and its neighborhood- relations.
  • Context: Detailed analysis of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) emerged on Dec 19, following its signing. It is India’s most ambitious trade deal in the Middle East, offering nearly 100% duty-free access for Indian goods.

Multi-Dimensional Analysis

  • Strategic Maritime Link: Oman sits at the mouth of the Persian Gulf and the Strait of Hormuz. This CEPA is the economic pillar of the 2018 “Duqm Port” agreement, which allows Indian naval access. It solidifies India’s role as a net security provider in the Western Indian Ocean.
  • Trade Complementarity: India is Oman’s 2nd largest export destination. The CEPA removes duties on Indian textiles, leather, and engineering goods, while India secures stable supply lines for Urea, LNG, and Polypropylene.
  • Services and “Mode 4” Mobility: Oman has committed to allowing Indian professionals (Doctors, Engineers, IT) a 2-year visa and increased quotas. This is a significant win for the 7-lakh-strong Indian diaspora and helps in remittance stability.
  • AYUSH Diplomacy: Oman is the first Gulf nation to recognize AYUSH products as “regulated medicines” under this trade framework. This creates a multi-billion dollar market for Indian traditional medicine in the Middle East.
  • Friend-Shoring & Supply Chains: Aligned with the US National Security Strategy (Dec 2025), India is using Oman to “friend-shore” critical supply chains, reducing dependence on the Red Sea route which is prone to geopolitical shocks (Houthi/Iran).

Tabulation: Analysis and Schemes

FeatureAnalysis
PositivesImmediate 0% duty on 99% of Indian exports; Strategic counter to China’s presence in the Gulf; Formal recognition of Indian labor rights in Oman.
NegativesPotential “Trade Diversion” where Indian MSMEs might struggle against larger players; Sensitivity in the Dairy and Tea sectors (India kept these in the negative list).
Govt. SchemesDistricts as Export Hubs, PLI Scheme (Output to Oman), Global South Outreach.
  • Example: The Oman India Fertilizer Company (OMIFCO) serves as a model for “Joint-Venture Diplomacy” that this CEPA intends to replicate in the green hydrogen and tech sectors.
  • Way Forward: Focus on the “Social Security Agreement” to ensure portability of benefits for Indian workers and fast-tracking the “Joint Investment Fund” for infrastructure.
  • Conclusion: The India-Oman CEPA is not just a trade pact; it is a strategic maneuver that integrates India’s economic interests with the security architecture of the Arabian Peninsula.

Mains Practice Question: “The India-Oman CEPA transcends traditional trade logic to serve as a maritime and strategic anchor in the Western Indian Ocean.” Discuss. (250 Words)


3. Securities Markets Code Bill, 2025: Reforming Capital Governance

  • Syllabus: GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, and growth; GS Paper II: Governance (Regulatory bodies).
  • Context: On December 19, 2025, the Finance Minister introduced the Securities Markets Code Bill, 2025, which aims to consolidate eight different laws—including the SEBI Act, SCRA, and Depositories Act—into a single, unified code.

Multi-Dimensional Analysis

  • Legal Consolidation: The current securities landscape is fragmented. This Bill provides a “One Nation, One Code” for capital markets, reducing the compliance burden for domestic and foreign institutional investors (FIIs). It follows the model of the Insolvency and Bankruptcy Code (IBC).
  • Decriminalization & Ease of Doing Business: The Bill classifies offences into two categories. Category I (Procedural lapses) now only carries civil penalties, while Category II (Fraud/Market Abuse) remains a criminal offence. This reduces “fear psychosis” among directors while maintaining market integrity.
  • Investor Protection 2.0: The Bill introduces a mandatory “Time-Bound Inspection” mechanism. SEBI must conclude investigations within 12 months, preventing long-drawn legal battles that trap investor capital.
  • Accountability of Regulators: For the first time, a “Regulatory Coordination Committee” is proposed to resolve conflicts between SEBI, RBI, and IRDAI, particularly in the cross-sectoral fintech space (e.g., insurance-linked mutual funds).
  • Digital Sovereignty: The Code mandates that all critical market data (NSE/BSE records) must be stored in Indian Data Centers, protecting the economy from external cyber-shocks and data-colonialism.

Tabulation: Analysis and Schemes

FeatureAnalysis
PositivesDrastic reduction in litigation; Uniform definitions for “Securities”; Enhanced SEBI powers for overseas asset recovery; Boost to Retail participation.
NegativesConcentration of power in the SEBI Board; Complexity of transitioning from multiple old laws; Lack of clarity on “Crypto-assets” within the Code.
Govt. SchemesDigital India (Fintech), Viksit Bharat @2047, National Strategy for Financial Education.
  • Example: The 1xBet betting app case (Dec 19 news), where the ED attached assets of actors, highlights the need for this Code to give SEBI better “follow-the-money” powers across digital borders.
  • Way Forward: The government must ensure the Securities Appellate Tribunal (SAT) is staffed with technical experts to handle the surge in appeals post-consolidation.
  • Conclusion: The Securities Markets Code Bill is the “second-generation reform” needed to turn India’s stock markets from a speculative arena into a reliable engine of long-term capital for a $10 trillion economy.

Mains Practice Question: “The Securities Markets Code Bill 2025 is an attempt to balance the ‘regulatory stick’ with the ‘facilitation carrot’.” Analyze its impact on the ease of doing business in India. (250 Words)

4. Bureau of Port Security (BoPS): Securing India’s Maritime Gateways

  • Syllabus: GS III: Internal Security; Infrastructure (Ports); GS II: Statutory, Regulatory, and Quasi-judicial bodies.
  • Context: On December 19, 2025, the Union Home Ministry chaired a high-level meeting to operationalize the Bureau of Port Security (BoPS). Constituted under Section 13 of the Merchant Shipping Act, 2025, it is modeled after the Bureau of Civil Aviation Security (BCAS).

Multi-Dimensional Analysis

  • Strategic Security: India’s 7,500 km coastline and 12 major ports are vulnerable to asymmetric threats (terrorism, smuggling, and piracy). BoPS provides a unified regulatory and oversight framework to replace the currently fragmented security management between different port trusts and state police.
  • The “Graded Security” Model: Moving away from a “one-size-fits-all” approach, BoPS will implement security protocols based on a port’s vulnerability, trade volume, and geographic location. For example, transshipment hubs like Vizhinjam will have higher tech-surveillance compared to smaller feeder ports.
  • Cyber-Physical Convergence: Modern ports are highly digitized. BoPS includes a dedicated Cybersecurity Division to protect Automated Terminal Operating Systems (TOS) from ransomware and state-sponsored digital espionage that could cripple national supply chains.
  • Private Port Integration: Unlike earlier frameworks that primarily focused on major (government) ports, BoPS mandates that Private/Non-Major ports (like Mundra or Krishnapatnam) must also undergo mandatory security audits by the CISF, which has been designated as the Recognised Security Organisation (RSO).

Analysis Table: Positives, Negatives, and Schemes

FeatureAnalysis
PositivesUnified Command: Single point of accountability for maritime security; ISPS Compliance: Aligns India with International Ship and Port Facility Security standards; Capacity Building: CISF to train private security agencies.
NegativesCost Burden: Higher security compliance costs for smaller private operators; Jurisdictional Overlap: Potential friction between BoPS, Coast Guard, and State Marine Police.
Govt. SchemesSagarmala Programme, Maritime India Vision 2030, National Maritime Security Coordinator (NMSC).
  • Example: The 2008 Mumbai attacks utilized the sea route; BoPS is the final institutional brick in the wall to ensure that “Port Entry” becomes as strictly regulated as “Airport Entry.”
  • Way Forward: Integrating AI-based facial recognition and underwater drones for hull inspections into the BoPS standard operating procedures.
  • Conclusion: BoPS is not just a security body; it is an economic insurance policy for India’s target of becoming a global maritime powerhouse.

Mains Question: “The creation of the Bureau of Port Security (BoPS) marks a shift from reactive to proactive maritime governance.” Examine the challenges and opportunities of this transition.


5. Global Burden of Disease (GBD) Study 2025: India’s NCD “Time-Bomb”

  • Syllabus: GS II: Issues relating to Health; Social Justice.
  • Context: The GBD 2025 findings released on December 19, 2025, warn that India is on track to have nearly 900 million people with metabolic disorders or diabetes by 2050 if current dietary and lifestyle trajectories continue.

Multi-Dimensional Analysis

  • Epidemiological Shift: India is witnessing a “double burden” of disease. While communicable diseases are declining, Non-Communicable Diseases (NCDs) like Type-2 Diabetes and Hypertension now account for over 65% of total deaths.
  • The “Thin-Fat” Phenotype: The report highlights the unique Indian phenotype—higher body fat percentage at lower BMIs—which makes Indians susceptible to diabetes even without being “obese” by Western standards.
  • Economic Impact: NCDs are “poverty traps.” They require lifelong medication and management, leading to high Out-of-Pocket Expenditure (OOPE). The study estimates a potential loss of $4.58 trillion to India’s GDP between 2012 and 2030 due to NCDs.
  • Socio-Environmental Links: The 2025 study links PM2.5 air pollution directly to increased insulin resistance, suggesting that India’s health crisis is as much an environmental issue as it is a medical one.

Analysis Table: Positives, Negatives, and Schemes

FeatureAnalysis
PositivesData-Driven Policy: Allows for state-specific health interventions; Awareness: Triggers “Front-of-Pack” labeling (FOPL) debates for ultra-processed foods.
NegativesRural Surge: NCDs are no longer just “urban” diseases; rural India lacks the diagnostic infrastructure (HbA1c tests) to manage the surge.
Govt. SchemesNational Programme for Prevention and Control of NCDs (NP-NCD); Eat Right India; Fit India Movement.
  • Example: The success of the “Kerala Diabetes Prevention Programme” (community-based lifestyle intervention) is cited as a scalable model for the rest of India.
  • Way Forward: Implementing a “Sugar Tax” on high-fructose beverages and integrating mandatory NCD screening at all Ayushman Arogya Mandirs.
  • Conclusion: The GBD 2025 study is a “Code Red” for the Indian healthcare system, necessitating a shift from “Sick-care” to “Health-care.”

6. Viksit Bharat – G RAM G Bill, 2025: The Evolution of Rural Welfare

  • Syllabus: GS II: Welfare schemes for vulnerable sections; Governance.
  • Context: On December 19, 2025, Parliament passed the Viksit Bharat – G RAM G (Guarantee for Rozgar and Ajeevika Mission – Gramin) Bill, effectively replacing the 20-year-old MGNREGA (2005).

Multi-Dimensional Analysis

  • Conceptual Shift: MGNREGA was a “poverty alleviation” scheme focused on “relief” (digging holes). G RAM G shifts the focus to “Productive Asset Creation.” Every hour of labor must now contribute to a predefined National Infrastructure Stack (e.g., climate-resilient roads or solar micro-grids).
  • Enhanced Entitlements: The Bill increases the guaranteed work from 100 days to 125 days per household. However, it introduces a “60-day no-work window” during peak agricultural seasons to prevent labor shortages in farming.
  • Digital Governance: It mandates the use of “Agentic AI” for anomaly detection in muster rolls and real-time GPS-tagging of assets. This aims to eliminate “ghost works” and middleman corruption.
  • Administrative Professionalism: The administrative expenditure cap is raised from 6% to 9%, allowing Gram Panchayats to hire technical experts (engineers/agronomists) to ensure that the assets built are durable and not “washed away in one monsoon.”

Analysis Table: Positives, Negatives, and Schemes

FeatureAnalysis
PositivesAsset Durability: Focus on climate-resilient infrastructure; Wage Parity: Links wages to the Consumer Price Index (Rural) with annual revisions.
NegativesRisk of Exclusion: AI/Biometric reliance may exclude the elderly or those with “worn fingerprints”; Centralization: Greater central control over fund release based on “outcomes.”
Govt. SchemesLakhpati Didi, PM Awas Yojana-Gramin, Jal Jeevan Mission.
  • Example: Under G RAM G, a village in Bundelkhand is no longer just “clearing silt” but building a tiered Watershed Management System using engineering designs provided by the mission.
  • Way Forward: Ensuring that the “Right to Work” remains a legal demand-driven right and does not become a discretionary “target-based” scheme.
  • Conclusion: G RAM G is the “second-generation” reform of India’s rural safety net, aligning labor with the goal of Viksit Bharat.

Mains Question: “The transition from MGNREGA to the G RAM G Bill represents a shift from ‘Employment as Relief’ to ‘Employment as Investment’. Discuss.”


7. SC Judgment on ‘Environmental CSR’: A New Corporate Jurisprudence

  • Syllabus: GS II: Judiciary; GS III: Environment (Conservation).
  • Context: In a landmark judgment on December 19, 2025, the Supreme Court ruled that corporations have a “Fundamental Duty” to protect ecosystems. Specifically, it held that renewable energy firms near Great Indian Bustard (GIB) habitats are “guests in the bird’s abode” and must bear the cost of conservation.

Multi-Dimensional Analysis

  • Broadening CSR: The Court interpreted ‘Corporate Social Responsibility’ (CSR) to inherently include ‘Environmental Responsibility’. It moved beyond the Companies Act (2% profit) to a constitutional mandate under Article 51A(g).
  • The GIB vs. Green Energy Conflict: The judgment addresses the “Green vs. Green” dilemma. While solar power is good for the climate, overhead transmission lines are killing the critically endangered GIB. The SC mandated that companies must pay for underground cabling and in-situ conservation.
  • Legal Personhood of Ecosystems: By stating that corporations are “organs of society,” the court suggested that their “social license to operate” depends on maintaining the biological integrity of the areas they occupy.
  • Precautionary Principle: The court applied the “Polluter Pays” and “Precautionary” principles, stating that “lack of scientific certainty” cannot be an excuse for not protecting an endangered species like the GIB.

Analysis Table: Positives, Negatives, and Schemes

FeatureAnalysis
PositivesEcological Justice: Apex predators/species get legal “standing”; Sustainable Development: Balances industrial growth with biodiversity.
NegativesFinancial Viability: Increased costs for solar/wind projects may slow down renewable energy targets; Legal Uncertainty: Could lead to a spate of litigation against any project near any sanctuary.
Govt. SchemesProject Great Indian Bustard, National Green Tribunal (NGT) Act, Business Responsibility and Sustainability Reporting (BRSR).
  • Example: This ruling mirrors the “Rights of Nature” movements in countries like Ecuador and New Zealand, but applies it through the lens of corporate obligation.
  • Way Forward: Creation of a “National Biodiversity Fund” where companies operating in ecologically sensitive zones contribute a “Biodiversity Cess.”
  • Conclusion: This judgment marks the birth of “Ecological Jurisprudence” in India, where the rights of a species are balanced against the economic rights of a corporation.

8. Indian Railways’ ‘Mission 3000MT’: Reforming Freight Diversification

  • Syllabus: GS III: Infrastructure (Railways); Indian Economy (Logistics).
  • Context: As of December 19, 2025, the Ministry of Railways reported a successful 10.8% growth in ‘Non-Conventional’ freight (parcels, automobiles, and e-commerce) under its ‘Mission 3000MT’ strategy.

Multi-Dimensional Analysis

  • Reducing Coal Dependence: Historically, 65% of Rail freight was coal. With the shift to renewables, Railways is diversifying into the “BOG” (Bulk, Other than Grain) basket—metals, chemicals, and fly ash—to ensure long-term revenue stability.
  • Modal Shift for Logistics Cost: India’s logistics cost is ~13% of GDP. Shifting freight from road to rail (which is 3x more fuel-efficient) is the only way to bring this down to 8%. Mission 3000MT aims to double the current 1,500 MT capacity by 2030.
  • The “Gati Shakti” Synergy: The mission uses the PM Gati Shakti NMP to identify “last-mile” gaps. By building “Gati Shakti Cargo Terminals” (GCTs) at industrial clusters, Railways is reducing the “first and last mile” cost that traditionally favored trucks.
  • E-Commerce Integration: For the first time, dedicated “Cargo Liners” (time-tabled freight trains) are being run for e-commerce giants, treating freight with the same punctuality as Vande Bharat passenger trains.

Analysis Table: Positives, Negatives, and Schemes

FeatureAnalysis
PositivesDe-carbonization: Significant reduction in carbon footprint per ton-km; Revenue Diversification: Protects Railways from “Coal-phase-out” shocks.
NegativesCongestion: Freight and Passenger trains still share the same tracks in 70% of the network; Operating Ratio: High working expenses (98.4%) limit reinvestment capacity.
Govt. SchemesNational Rail Plan (NRP) 2030, Dedicated Freight Corridors (DFCs), Station One Product (OSOP).
  • Example: The “Automobile Freight Train Operators” (AFTO) scheme has led to Maruti and Hyundai moving over 20% of their factory output via rail in 2025.
  • Way Forward: Complete separation of freight and passenger tracks via the National High-Speed Freight Quadrangle.
  • Conclusion: Mission 3000MT is the backbone of India’s “Logistics Revolution,” essential for achieving the $10 trillion economy goal.

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