DEC 16 – UPSC Current Affairs – PM IAS

1. The SHANTI Bill, 2025: Opening the Nuclear “Gated Community”

Syllabus: GS III (Energy, Science & Tech); GS II (Government Policies & Interventions)

Context

On December 16, 2025, the Union Government tabled the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill. This landmark legislation seeks to repeal the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage (CLND) Act of 2010, marking the first time in 78 years that the private sector is permitted to build, own, and operate nuclear power plants in India.

Main Body: Multi-Dimensional Analysis

  • The Energy Security Dimension: India’s “Panchamrit” pledge to achieve Net Zero by 2070 requires a stable “baseload” power source to replace coal. While solar and wind are growing, their intermittency threatens grid stability. Nuclear energy, currently stagnant at 8.8 GW (less than 2% of the mix), is the only zero-carbon alternative. The Bill targets 100 GW by 2047, which requires an estimated $200 billion investment—far beyond the fiscal capacity of the public sector (NPCIL/BHAVINI).
  • Economic and FDI Dimension: By allowing up to 49% FDI in joint ventures, the Bill invites global capital from sovereign wealth funds and energy giants. This ends the “Capital Starvation” of the nuclear sector, where projects often took 15+ years due to funding delays.
  • The Technological Shift (Small Modular Reactors): The Bill shifts focus from massive, multi-billion dollar pressurized heavy water reactors (PHWRs) to Small Modular Reactors (SMRs). These factory-built units (under 300 MW) are cheaper, safer, and can be deployed closer to industrial hubs, making them attractive for private industrial captive power.
  • Legal & Liability Dimension: A historical roadblock for foreign suppliers (like Westinghouse or Rosatom) was Section 17(b) of the 2010 CLND Act, which allowed operators to sue suppliers for accidents. The SHANTI Bill aligns India with the Convention on Supplementary Compensation (CSC), capping supplier liability and channeling it into a National Nuclear Insurance Pool.
  • Strategic Sovereignty: To address security concerns, the Bill retains State Monopoly over the “Front-end” (uranium enrichment) and “Back-end” (spent fuel reprocessing) of the nuclear fuel cycle.

Positives, Negatives, and Government Schemes

  • Positives: * Scale: Rapidly increases India’s clean energy footprint.
    • Innovation: Incentivizes R&D in thorium-based fuels (India’s three-stage program).
    • Employment: High-tech job creation in the nuclear supply chain.
  • Negatives:
    • Regulatory Capture: The AERB (Atomic Energy Regulatory Board) needs statutory independence from the Department of Atomic Energy (DAE) to prevent private operators from influencing safety norms.
    • Waste Management: The Bill lacks a detailed roadmap for the long-term cost of decommissioning private plants.
  • Government Schemes: Nuclear Energy Mission (Budget 2025), Net Zero 2070, Panchamrit Commitments.

Examples

  • Bharat SMRs: The 220 MW indigenous SMR design being institutionalized under this Bill.
  • NTPC-NPCIL JV: An existing model of cooperation that this Bill will now scale to include private firms like Tata or Reliance.

Way Forward

The government must ensure that the “Regulator” (AERB) is empowered with penalizing powers equal to the private sector’s scale. Public outreach is vital to address “Radiophobia” (Fear of radiation) among local communities near new potential sites.

Conclusion

The SHANTI Bill is the “1991 Moment” for Indian energy. It acknowledges that strategic secrets cannot come at the cost of national energy poverty.

Practice Mains Question: “How does the SHANTI Bill 2025 address the ‘Triple Constraint’ of Funding, Technology, and Liability in India’s nuclear energy sector? Examine the role of Small Modular Reactors (SMRs) in this transition.”


2. The VB-G RAM G Bill: From Welfarism to Rural Entrepreneurship

Syllabus: GS II (Welfare Schemes); GS III (Rural Employment)

Context

The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, was introduced to replace the MGNREGA 2005. It represents a fundamental shift in the philosophy of rural employment in India.

Main Body: Multi-Dimensional Analysis

  • Fiscal Federalism & The 60:40 Split: For the first time, states are required to contribute 40% of the wage cost (up from 0% for unskilled wages). This is intended to increase “State Ownership” and reduce frivolous spending. However, debt-stressed states argue this is an “unfunded mandate” that will kill the scheme in poorer regions.
  • The “Agricultural Alignment” (60-Day Pause): The Bill introduces a Mandatory Pause of works during peak farming seasons. This addresses the 20-year-old complaint from the farming lobby that MGNREGA created an artificial labor shortage, driving up agricultural costs during harvest time.
  • Asset Quality and the “National Infrastructure Stack”: Under MGNREGA, assets were often “perishable” (pits, kucha roads). The new Bill mandates that 80% of works must contribute to the Viksit Bharat Rural Stack—durable assets like climate-resilient ponds, cold storage, and rural solar parks.
  • Technological Oversight: The Bill mandates Bhuvan-based Geo-tagging and AI-driven attendance (Real-time NMMS) to eliminate the “Contractor-Pradhan nexus” and ghost workers.

Positives, Negatives, and Government Schemes

  • Positives:
    • Guarantee Expansion: Increases work from 100 to 125 days.
    • Women’s Empowerment: Linked to the Lakhpati Didi mission, encouraging assets for SHGs.
  • Negatives:
    • End of Demand-Driven Model: Shift to “Normative Budgeting” may lead to work being denied once a state’s quota is filled.
    • Digital Exclusion: Many remote hamlets still lack the internet for the mandatory AI-attendance.
  • Government Schemes: Lakhpati Didi Mission, PM-PRANAM, Mission Amrit Sarovar.

Examples

  • Mission Amrit Sarovar: Rejuvenating 75 water bodies per district, now integrated into the durable asset list of the new Bill.

Way Forward

The “60-day pause” should be decentralized to the Block Level based on local crop cycles rather than a blanket state-wide notification. The social audit mechanism must be strengthened to ensure that the shift to “durable assets” doesn’t lead to contractor-led machinery use.

Conclusion

The VB-G RAM G Bill attempts to graduate the rural laborer from a “digging pits” mindset to an “infrastructure builder” mindset, though the transition must not trample upon the “Right to Life” guaranteed by the previous act.

Practice Mains Question: “Critically evaluate the shift from ‘Rights-based’ to ‘Incentive-based’ rural employment as proposed in the VB-G RAM G Bill 2025.”


3. 100% FDI in Insurance: Navigating “Insurance for All by 2047”

Syllabus: GS III (Economy); GS II (Statutory/Regulatory Bodies)

Context

On Dec 16, 2025, the Cabinet cleared the Insurance (Amendment) Bill, raising the FDI limit from 74% to 100%. This is a major reform aimed at increasing insurance penetration in India.

Main Body: Multi-Dimensional Analysis

  • The Capital Deficit: India’s insurance penetration stands at 4% of GDP (World average: 7%). To cover the remaining 96% of the population, an estimated $100 billion capital infusion is needed. 100% FDI allows global players (Allianz, AXA) to operate without the friction of an Indian partner.
  • Product Innovation (Niche Insurers): Domestic firms often stick to “Endowment” plans. 100% FDI will bring in Micro-insurers and Climate-risk insurers who use global data models to cover specific risks like “Urban Flooding” or “Crop Heatwaves.”
  • Deeper G-Sec Market: Insurance companies are long-term investors. A surge in foreign insurers will provide the government with “Patient Capital” for its ₹111 lakh crore National Infrastructure Pipeline (NIP).
  • Regulatory Evolution (IRDAI 2.0): The Bill grants IRDAI “Adjudicatory Powers” similar to SEBI. It can now levy penalties of up to ₹25 crore for mis-selling, protecting Indian consumers from aggressive global sales tactics.

Positives, Negatives, and Government Schemes

  • Positives: * Consumer Choice: Lower premiums due to global competition.
    • Technology: AI-based underwriting will speed up claim settlements.
  • Negatives: * Data Sovereignty: Sensitive medical and financial data of Indians may reside on foreign servers.
    • Neglect of Rural Areas: Foreign firms might focus only on “Creamy Layer” urban customers.
  • Government Schemes: Ayushman Bharat, PMJJBY, PMSBY.

Examples

  • Singapore Partnership: The MoU between India and Singapore for the Advanced Manufacturing NCoE in Chennai (Dec 15) reflects how foreign capital is now being linked to specific sector outcomes.

Way Forward

The IRDAI must mandate “Rural Service Obligations” (RSOs) for 100% FDI firms, ensuring they serve the bottom of the pyramid. Data localization norms must be strictly enforced.

Conclusion

By decoupling from the mandatory “Joint Venture” model, India has cleared the legal jungle for global finance, turning insurance into a core pillar of the $10 trillion economy.

Practice Mains Question: “The liberalization of the insurance sector to 100% FDI is an essential step toward ‘Viksit Bharat’. However, it poses significant challenges for ‘Data Sovereignty’ and ‘Financial Inclusion’. Discuss.”


4. India-Jordan Relations: The Levant Pillar of “Link West”

Syllabus: GS II (International Relations, Bilateral Agreements)

Context

PM Modi’s visit to Jordan (Dec 15–16, 2025) coincided with the 75th Anniversary of Diplomatic Ties. This first full-fledged bilateral visit marks a pivot to the Mediterranean Levant.

Main Body: Multi-Dimensional Analysis

  • Energy and Food Security: Jordan is India’s largest supplier of Phosphates and Potash. For a nation aiming at “Atmanirbhar Agriculture,” Jordan is a critical strategic partner.
  • Counter-Terrorism (The Aqaba Process): Jordan is a pioneer in de-radicalization. India and Jordan are scaling the Aqaba Process to share intelligence on the “Global Lone Wolf” threat, especially in the digital domain.
  • Cultural Diplomacy (Petra-Ellora Twinning): The twinning of these two UNESCO World Heritage Sites is a masterstroke of soft power, linking the ancient Nabatean trade routes to the Indian Silk Route.
  • The Palestinian Cause: Jordan is the “Custodian of the Holy Sites” in Jerusalem. India’s engagement with King Abdullah II reinforces India’s balanced “Two-State Solution” stance without alienating Israel.

Positives, Negatives, and Government Schemes

  • Positives: * Diversifies India’s West Asia outreach beyond the GCC (Gulf).
    • Joint ventures in the textile sector using Jordanian Special Economic Zones.
  • Negatives: * Regional volatility (Gaza conflict) remains a hurdle for infrastructure corridors like IMEC.
    • India’s trade with Jordan is still heavily skewed toward fertilizers.
  • Government Schemes: Link West Policy, E-VidyaBharati, Cultural Exchange Programme (2025-29).

Examples

  • Petra-Ellora Twinning: A formal MoU signed on Dec 15 to boost heritage tourism and archaeological cooperation.

Way Forward

The focus must move toward Digital Public Infrastructure (DPI). India should help Jordan implement a “Jordan Stack” based on UPI and Aadhaar to modernize its governance.

Conclusion

Jordan is the “Island of Stability” in a chaotic region. For India, it is the bridge to the Mediterranean and a guarantor of agricultural stability.

Practice Mains Question: “Examine the strategic and economic significance of Jordan in India’s ‘Link West’ policy. How do the 2025 agreements reflect a move toward ‘Heritage Diplomacy’?”


5. Naxal-Free India 2026: The Final Security Surge

Syllabus: GS III (Internal Security, LWE)

Context

The MHA’s December 2025 status report on Left-Wing Extremism (LWE) indicates that the “Red Corridor” has shrunk to just 9 districts. The government has set a definitive deadline of March 2026 for a “Naxal-Free India.”

Main Body: Multi-Dimensional Analysis

  • The “Operation Black Forest” Impact: This 2025 operation used satellite-linked drones and AI-in-a-Box to track guerrilla movements in the dense Abujhmad forests, neutralising 300+ cadres in one year.
  • The “Vikas Camp” Model: As soon as a territory is cleared, the District Reserve Guard (DRG) sets up camps offering Aadhaar, health services, and banking. This “Vacuum Filling” prevents the return of the Maoist ideology.
  • Choking the Urban Network: The NIA and ED have targeted the “Levi-collection” (extortion) funds, seizing ₹150+ crore and breaking the link between forest cadres and their urban ideologues.
  • Infrastructural Saturation: The construction of 12,000 km of roads and 5,000 4G towers in core zones has ended the “Geographic Isolation” that Maoists thrived on.

Positives, Negatives, and Government Schemes

  • Positives: * Highest-ever surrender rates (2,000+ in 2025).
    • Local recruitment via the Bastariya Battalion has turned locals into “Force Multipliers.”
  • Negatives: * Residual pockets in the “Tri-junction” (Kerala-Karnataka-Tamil Nadu) are becoming new hideouts.
    • Risk of “State Overreach” during the final push, potentially alienating innocent tribals.
  • Government Schemes: SAMADHAN Strategy, Aspirational Districts Programme, Special Central Assistance (SCA).

Examples

  • Ekam AI: The Indian Army’s indigenous secure platform used for real-time situational awareness in LWE zones, displayed on Dec 16.

Way Forward

The final push must be accompanied by “Forest Rights Act” implementation. Security alone cannot win; the sense of “Land Ownership” is the only permanent antidote to Maoist recruitment.

Conclusion

India is at the “Last Mile” of its longest internal war. The transition from a “Red Corridor” to a “Development Corridor” is nearly complete.

Practice Mains Question: “Winning the ‘Final Mile’ against Left-Wing Extremism requires more than military force. Discuss the role of ‘Governance Saturation’ in achieving the 2026 Naxal-Free target.”


6. VBSA Bill, 2025: Unified Regulation of Higher Education

Syllabus: GS II (Education, Governance, Federalism)

Context

The Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025, seeks to create a single higher education regulator, subsuming the UGC, AICTE, and NCTE. It aims to implement the NEP 2020 vision of a “Light but Tight” regulatory framework.

Main Body: Multi-Dimensional Analysis

  • Regulatory Simplification: Currently, a university must seek approvals from multiple bodies (UGC for funds, AICTE for technical courses, etc.). VBSA creates a “Single Window” for recognition, funding, and accreditation.
  • Outcome-Based Funding: Shifting from “Grant-based” to “Performance-based” funding. Universities will be ranked based on research output, global rankings, and student employability.
  • Penal Authority: The Adhishthan is empowered to levy fines up to ₹2 crore and suspend degree-granting powers of “degree mills” (fake universities).
  • Federal Friction: Education is in the Concurrent List. States like Tamil Nadu and Kerala argue that a central “Adhishthan” will erode the autonomy of state universities and impose a “One-Size-Fits-All” curriculum.

Positives, Negatives, and Government Schemes

  • Positives: * Facilitates entry of top 100 foreign universities.
    • Removes “Inspector Raj” by shifting to a “Disclosure-based” self-regulation model.
  • Negatives: * Centralization: The Education Minister’s role in appointing the VBSA board raises concerns of “Political Interference.”
    • Equity Gap: Remote public universities may struggle to compete for “Performance-based” funds against well-funded urban private ones.
  • Government Schemes: NEP 2020, PM-USHA, Institutions of Eminence (IoE).

Examples

  • Joint Parliamentary Committee (JPC): The Bill was referred to a JPC on Dec 16 after stiff opposition, showing the vibrant democratic scrutiny of educational reforms.

Way Forward

The VBSA must have a Federal Council with representation from all State Higher Education Councils to uphold cooperative federalism.

Conclusion

The VBSA Bill is a high-risk, high-reward reform. It can turn India into a global “Vishwa Guru” if it balances central standards with regional autonomy.

Practice Mains Question: “Does the VBSA Bill 2025 effectively balance ‘Minimum Regulation’ with ‘Maximum Academic Autonomy’? Critically analyze from the perspective of Federalism.”


7. Decolonizing Law: Repealing the 1908 Ports Act

Syllabus: GS II (Polity, Statutory Bodies); GS III (Infrastructure)

Context

On Dec 16, the Indian Ports Bill, 2025, was passed, repealing the 117-year-old Indian Ports Act of 1908. This is part of the “Panch Pran” pledge to remove all traces of the colonial mindset.

Main Body: Multi-Dimensional Analysis

  • Global Benchmarking: The 1908 Act was designed for “Revenue Extraction” by the British. The 2025 Bill is designed for “Efficiency and Sustainability,” aligning Indian ports with the IMO (International Maritime Organization) green norms.
  • Decentralization: Grants Major Ports (like JNPA, Kandla) more autonomy to set their own tariffs and enter into PPP (Public-Private Partnerships) without seeking central approval for every minor contract.
  • Green Maritime Transition: Mandates that every major port must transition to Renewable Energy (Solar/Wind) by 2030 and establish Green Hydrogen Hubs (Kandla and Tuticorin identified as first hubs).
  • Disaster Resilience: For the first time, the law includes mandatory provisions for Oil Spill Response and “Climate Adaptation” for coastal infrastructure.

Positives, Negatives, and Government Schemes

  • Positives: * Reduces the “Turnaround Time” (TAT) of ships to under 48 hours.
    • Boosts the Blue Economy by integrating inland waterways with maritime ports.
  • Negatives: * State-controlled “Minor Ports” fear that the new Bill will give the Center too much oversight over their operations.
    • High initial cost of “Green Transition” for small port operators.
  • Government Schemes: Sagarmala, Maritime Amrit Kaal Vision 2047, PM Gati Shakti.

Examples

  • Kandla-Tuticorin Corridor: Designated as India’s first “Green Shipping Corridor” under the new Bill.

Way Forward

The government must provide a “Green Transition Fund” to help minor ports upgrade their equipment to electric and hydrogen-based systems.

Conclusion

The repeal of the 1908 Act is not just a legal change; it is the decoupling of Indian trade from its colonial anchors.

Practice Mains Question: “How does the Indian Ports Bill 2025 facilitate the ‘Green Maritime Transition’ while addressing the limitations of the 1908 colonial-era legislation?”


8. Vijay Diwas 2025: The “Indigenous” Edge

Syllabus: GS I (Post-Independence History); GS III (Security, Defence Tech)

Context

On Vijay Diwas (Dec 16, 2025), the Indian Army showcased three indigenous AI-based platforms—Ekam AI, AI-in-a-Box, and Project SAMBHAV—marking the 54th anniversary of the 1971 victory.

Main Body: Multi-Dimensional Analysis

  • The 1971 Legacy: While 1971 was a triumph of “Tri-Service Synergy” (Army, Navy, Air Force), 2025 is a triumph of “Cyber-Physical Synergy.” The victory over Pakistan is now used as a template for “Multi-Domain Warfare.”
  • “AI-in-a-Box” (Force Multiplier): This indigenous portable AI system allows soldiers in remote, “GPS-denied” areas (like Siachen or dense LWE forests) to analyze surveillance data without internet connectivity.
  • Data Sovereignty (Ekam AI): By using an indigenous secure AI platform for sensitive documents, India has ended its reliance on foreign cloud servers (Microsoft/Google) for military data, preventing potential “Cyber-Sabotage” during wartime.
  • Aatmanirbharta in Defence: In 1971, India was under a Western arms embargo. In 2025, India is an Exporter of high-tech defense gear (₹25,000 crore target), with the Tejas Mk2 and BrahMos leading the way.

Positives, Negatives, and Government Schemes

  • Positives: * Reduces the “Import Bill” for defense.
    • Showcases India as a “Net Security Provider” in the Indo-Pacific.
  • Negatives: * Technological Gap: India still lags in high-end Jet Engine and Semiconductor manufacturing.
    • The “Agnipath” debate continues to question the long-term impact of short-term recruitment on military ethos.
  • Government Schemes: iDEX (Innovations for Defence Excellence), DAP 2020, Make in India in Defence.

Examples

  • Project SAMBHAV: A secure, end-to-end mobile ecosystem for the Indian Army, providing encrypted communication to the last soldier.

Way Forward

India must pivot from “Platform-centric” (buying tanks/planes) to “Network-centric” warfare (focusing on AI, electronic warfare, and space-based assets).

Conclusion

Vijay Diwas is no longer just about celebrating a 1971 map-changing event; it is about celebrating the “Strategic Autonomy” that indigenous technology provides in 2025.

Practice Mains Question: “Examine the transition from ‘Man-behind-the-Machine’ to ‘AI-empowered-Soldier’ in the context of the indigenous technologies showcased on Vijay Diwas 2025.”

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