News at a Glance
- Andhra Pradesh: A.P. Cabinet approves health policy for all families in State with ₹25 lakh coverage
- Krishi Vigyan Kendra-Yagantipalle bags ‘Best zonal KVK award’
- Economy: NITI Aayog’s Roadmap for Atmanirbharta in Pulses
- Polity and Governance: Exemption for Sri Lankan Tamil Refugees and Six Minority Communities under the Immigration and Foreigners Act, 2025
- Social Justice: NIRF India Rankings 2025: IIT Madras Retains Top Spot for 7th Consecutive Year
- Demographic Trends in India: Insights from the Sample Registration Survey 2023
- Defence: Theaterisation of Indian Armed Forces: Challenges, Opportunities, and the Road Ahead
- Environment and Ecology: Environment Audit Rules, 2025 – Towards Strengthening Environmental Compliance
A.P. Cabinet approves health policy for all families in State with ₹25 lakh coverage
Source: The Hindu
APPSC Syllabus Relevance: Governance
Context: Health policy for all
Why in News
The Andhra Pradesh Cabinet has approved a Universal Health Policy integrating Ayushman Bharat and NTR Vaidya Seva, offering health coverage of up to ₹25 lakh annually for all families in the State.
Introduction
- In a landmark decision, the Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu, has approved a Universal Health Policy that aims to provide comprehensive health insurance coverage to all families in the State, marking a major step toward social security and inclusive welfare.
Universal Health Policy
Key Features:
- Coverage: Each family in Andhra Pradesh will be eligible for free medical treatment up to ₹25 lakh per year, irrespective of economic status.
- Beneficiaries: The policy will cover 1.63 crore families, including 1.43 crore economically weaker families and 20 lakh others.
- Integration: The scheme integrates Ayushman Bharat and NTR Vaidya Seva programmes.
- Hybrid Model: Beneficiaries can avail treatment at 2,493 network hospitals, with coverage for 3,257 medical procedures.
- Claims Settlement:
- Up to ₹2.5 lakh → handled by insurance companies.
- ₹2.5 lakh – ₹25 lakh → borne by NTR Vaidya Seva Trust.
- Efficiency: A streamlined pre-authorisation system will ensure approvals within six hours.
(Image Source: The Hindu)
Significance:
- Establishes Andhra Pradesh as the first state to offer such high-value universal health insurance.
- Reduces financial vulnerability of families to catastrophic health expenditures.
- Strengthens trust in public-private healthcare partnerships through network hospitals.
Expansion of Medical Education
- Approval for 10 new medical colleges under the PPP model in Adoni, Madanapalle, Markapuram, Pulivendula, Penukonda, Palakollu, Amalapuram, Narsipatnam, Bapatla, and Parvathipuram.
- Aim: To increase doctor-patient ratio, expand regional access to medical education, and strengthen healthcare infrastructure.
Urban Development and Building Regularisation
- Scheme to regulate unauthorised constructions in ULBs, UDAs, and APCRDA areas (excluding the Capital Region).
- Amendment to raise permissible residential building height from 18 to 24 metres.
- Objective: Bring legal clarity to urban development, while addressing housing demand in growing towns and cities.
Consumer Welfare: Deepam-2 Scheme
- Beneficiaries with 5 kg LPG cylinders can upgrade to 14.2 kg domestic connections with subsidies.
- Impact: Benefits 23,912 families across 16 districts, particularly in agency and tribal regions, ensuring fuel equity.
Transport Reforms: Reduction in Green Tax
- AP Motor Vehicles Taxation (Amendment) Bill, 2025 approved.
- New Rates:
- ₹1,500 for tractors.
- ₹3,000 for trailers (commercial use).
- Replaces quarterly slab system, reducing operational costs for transport operators and supporting rural economy.
Higher Education Reforms
- Amendments to AP Private Universities (Establishment and Regulation) Act, 2016.
- Key Change: Removal of mandatory joint degree certification for greenfield and brownfield universities.
- Objective: Ease of regulation, boost academic autonomy, enhance research standards.
Infrastructure and Industrial Development
- Amaravati Government Complex: APCRDA Commissioner authorised to award L1 bid for trunk infrastructure works (roads, drains, utilities, plantations).
- Mangalagiri Gold Cluster: Approval for 78-acre Gem and Jewellery Park in Atmakur village, Guntur district under land pooling.
- Nomenclature Change: Modification from “desilting sand” to “desilting the riverfront” of Krishna River near Prakasam Barrage for clarity.
tamp Duty Exemption
- Educational and healthcare institutions allotted land in Amaravati after January 1, 2025, will be exempt from stamp duty, with reimbursement-based payment system.
Broader Implications
- Healthcare: The Universal Health Policy is a game-changer, reducing out-of-pocket expenses and setting a model for other states.
- Education & Human Capital: New medical colleges and university reforms expand access, improving human resource development.
- Urbanisation & Housing: Regularisation of buildings and increased height limits provide relief to citizens while boosting urban growth.
- Industrial Development: Gold cluster and Amaravati works reflect a push for economic diversification and urban infrastructure.
- Transport & Welfare: Reduced green tax and LPG parity ensure relief to vulnerable sections, balancing welfare with economic reforms.
Conclusion:
- The Andhra Pradesh Cabinet’s decisions reflect a comprehensive development agenda, addressing healthcare, education, urban planning, industrial growth, transport, and welfare.
- The Universal Health Policy, in particular, places Andhra Pradesh at the forefront of inclusive health governance in India.
CARE MCQ
Q1. With reference to the Universal Health Policy recently approved by Andhra Pradesh, consider the following statements:
- The policy provides free medical treatment of up to ₹25 lakh per family per year, irrespective of economic status.
- Claims up to ₹2.5 lakh will be borne by the NTR Vaidya Seva Trust, while claims above ₹2.5 lakh will be handled by insurance companies.
- The scheme integrates both Ayushman Bharat and the NTR Vaidya Seva programmes.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Answer 1- C
Explanation:
- Statement 1 is correct: The policy indeed provides free medical treatment of up to ₹25 lakh per family per year, irrespective of economic status, covering 1.63 crore families in the State.
- Statement 2 is incorrect: Claims up to ₹2.5 lakh are handled by insurance companies, while expenses above ₹2.5 lakh and up to ₹25 lakh are borne by the NTR Vaidya Seva Trust, not the other way around.
- Statement 3 is correct: The Universal Health Policy integrates Ayushman Bharat with the NTR Vaidya Seva scheme, bringing them under a hybrid model for comprehensive health coverage.
- Therefore, option C is the correct answer.
Krishi Vigyan Kendra-Yagantipalle bags ‘Best zonal KVK award’
Source: The Hindu
APPSC Syllabus Relevance: Awards and Honours
Context: Krishi-vigyan-kendras
Why in News
Krishi Vigyan Kendra (KVK), Yagantipalle won the “Best Zonal KVK Award 2024-25” for the third consecutive year.
Background & Institutional Framework
- Krishi Vigyan Kendra (KVK), Yagantipalle operates under the aegis of the Shri Hanumantharaya Educational and Charitable Society, serving the agro-climatic needs of its region.
- The KVK functions within the Agricultural Technology Application Research Institute (ATARI), Zone X, Hyderabad—a key ICAR regional hub coordinating extension services across Andhra Pradesh, Telangana, Tamil Nadu, and Puducherry.
Award Announcement & Occasion
- KVK, Yagantipalle has clinched the coveted “Best Zonal KVK Award” for the year 2024–25, marking their third consecutive year of dominance among 72 KVKs across the four states.
- The accolade—an acknowledgment of consistent excellence—was formally presented during the zonal KVK workshop’s closing ceremony on September 4, 2025, held at VIT, Vellore in Tamil Nadu.
(Image Source: Krishi Vigyan Kendras)
Basis for Recognition: Outstanding Multi-Dimensional Performance
KVK, Yagantipalle demonstrated exemplary and broad-based performance across 10 out of 13 monitored categories, achieving first place and setting a benchmark for excellence. Key areas of achievement included:
- Seed production
- Distribution of planting material
- Establishment as a seed hub for pulses
- Revolving fund generation
- Financial management—expenditure and receipts
- Creation and issuance of soil health cards
- Maintenance of a farmers’ database
- Training of extension personnel
- Establishment of demonstration units
Such achievements underscore its holistic impact on agricultural technology dissemination, financial discipline, training, and farmer outreach.
Significance & Strategic Implications
1. Model of Sustained Excellence
- Securing the Best Zonal KVK Award for three years in a row highlights sustained institutional excellence—not a one-off success. It reflects strong governance, strategic planning, and adaptive management.
2. Holistic Extension Impact
- Performance across diverse parameters—from production to training and resource management—illustrates the KVK’s comprehensive effectiveness. It signifies capabilities in outreach, farmer capacity building, tech deployment, and fiscal responsibility.
3. Regional Benchmarking
- As a recognized leader among 72 KVKs across four states, Yagantipalle sets the standard for peer institutions to emulate, encouraging healthy competition and knowledge-sharing among agricultural extension bodies.
4. Empowerment through Collaboration
- The award ceremony, graced by high-level dignitaries from academia and ATARI, reinforces the collaborative ecosystem connecting KVKs, state universities, and extension systems—a vital element for national agricultural progress.
CARE MCQ
Q2. Consider the following statements regarding Krishi Vigyan Kendras (KVKs):
- KVKs serve as district-level institutions for testing, demonstrating, and disseminating agricultural technologies.
- The recent award to KVK, Yagantipalle (AP) highlights their role in integrating seed production, soil health management, and farmer training.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer 2- C
Explanation:
- Statement 1 is correct: KVKs are ICAR-backed district-level centres that bridge the gap between agricultural research and farmers.
- Statement 2 is correct: The recognition of Yagantipalle KVK in Andhra Pradesh underlines its integrated work in seed hubs, soil health, and farmer capacity building.
Battery Storage at Coal Plants: India’s Grid Balancing Experiment
UPSC Relevance: GS3 Economy
Context: India’s plan to integrate battery storage
Why in News
India will test battery storage at National Thermal Power Corporation (NTPC) coal plants to balance the grid as solar capacity surges, ensuring reliability while moving toward 500 GW non-fossil fuel capacity by 2030.
Introduction
- India is rapidly expanding its renewable energy capacity, especially solar, to meet its target of 500 GW non-fossil fuel capacity by 2030.
- However, with increasing solar power, grid balancing challenges arise: coal plants must ramp down during peak solar hours but are still needed for evening demand when solar generation falls.
- To address this, the government has decided to test battery storage systems at coal-based thermal power plants.
Key Highlights of the Initiative
Testing at NTPC plants
- The Central Electricity Authority (CEA) has tasked NTPC, India’s largest power generator, with testing battery storage at select coal plants.
- Funding support has been provided.
- NTPC has already floated a tender for 1.7 GW of battery storage across 11 coal plants.
Grid Integration Challenge
- During the day: Solar generation peaks → coal plants must ramp down.
- In the evening: Solar dips → coal plants must ramp up quickly, creating stress and inefficiency.
- Without storage, either coal plants shut down (wasting capacity) or remain idle at uneconomic levels.
(Image Source: the Hindu)
Role of Battery Storage
- Store excess solar or coal-based generation during the day.
- Release stored energy in the evening to meet peak demand.
- Enables coal plants to operate at a stable technical minimum load instead of frequent ramping.
Energy Security Balancing
- India is expanding renewables but still relies on coal for base-load and round-the-clock power.
- Government plans:
- Add 97 GW coal-based capacity by 2035, raising total to ~307 GW.
- Simultaneously expand renewable + battery storage to ensure grid reliability.
Benefits of the Initiative
Operational Efficiency
- Reduces start-stop cycles of coal plants → extends plant life.
- Cuts fuel costs and wear-and-tear from ramping.
Grid Stability
- Provides firm, dispatchable power when renewables fluctuate.
- Enhances reliability during evening peaks.
Economic Advantage
- Avoids curtailment of solar power (which is otherwise wasted).
- Reduces cost of maintaining backup capacity.
Climate Transition Support
- Smoothens India’s transition to renewables without immediate risk to energy security.
- Supports the goal of net-zero by 2070 while recognizing coal’s continuing role.
Challenges & Concerns
- High Cost of Battery Storage
- Large-scale storage deployment remains expensive in India.
- Need for policy and financial support (like Viability Gap Funding, concessional finance).
- Technology Dependence
- India relies heavily on imports (especially lithium-ion batteries).
- Raises concerns about supply chain security.
- Regulatory and Market Mechanisms
- Need clear rules for battery ownership, cost recovery, and tariff setting for storage-linked coal plants.
- Coal Lock-in Risk
- Critics warn this may prolong coal use, delaying full renewable transition.
Government & Policy Linkages
- CEA Guidelines: Framing technical minimum load requirements for coal plants amid renewable surge.
- National Electricity Plan (NEP): Projections include both renewable expansion and additional coal capacity till 2035.
- Energy Storage Mission: Government plan to incentivize battery manufacturing and deployment.
- International Context: Similar hybrid approaches (coal/thermal + storage) being explored in China, U.S., and Australia.
CARE MCQ
Q3. Consider the following statements regarding India’s plan to integrate battery storage at coal power plants:
- The initiative is being tested at select plants of National Thermal Power Corporation (NTPC), India’s largest power generator.
- The purpose is to stabilize coal plants by reducing frequent ramping as solar generation fluctuates.
- The government has announced that no additional coal-based capacity will be added beyond 2030.
- Battery storage at coal plants will allow excess solar power to be stored and dispatched during evening peak demand.
Which of the above statements are correct?
(A) 1 and 2 only
(B) 1, 2 and 4 only
(C) 2 and 3 only
(D) 1, 3 and 4 only
Answer 3- B
Explanation
- Statement 1 is correct: The Central Electricity Authority (CEA) has tasked NTPC with testing battery storage systems at some coal plants, with funding support. NTPC has already floated a tender for 1.7 GW of storage across 11 coal plants.
- Statement 2 is correct: The experiment aims to reduce the frequent ramping up and down of coal plants caused by fluctuating solar generation, thereby ensuring technical minimum load and operational stability.
- Statement 3 is incorrect: The government has not stopped adding coal capacity. Instead, it plans to increase coal-based capacity by 97 GW by 2035, raising the total to about 307 GW, alongside renewable expansion.
- Statement 4 is correct: Battery systems will enable storage of excess solar power generated during the day, which can then be dispatched during evening peak demand, ensuring grid reliability and avoiding wastage.
Therefore, option B is the correct answer.
UPSC PYQ
Q. Consider the following statements: (2019)
- Coal sector was nationalised by the Government of India under Indira Gandhi.
- Coal blocks are allocated on lottery basis.
- Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Ans: (a)
GST Council Approves Two-Tier Tax Structure of 5% and 18%
Source: Indian Express
UPSC Relevance: GS 3 Economy
Why in News
The 56th GST Council meeting approved a simplified two-tier GST rate structure of 5% and 18%, exempted individual health insurance, and reduced tax on life-saving cancer drugs to nil.
Introduction
- The 56th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, concluded after a marathon 10.5-hour discussion on September 3, 2025.
- The Council approved a new two-tier GST structure with rates of 5% and 18%, effective September 22, 2025.
- The meeting focused on rationalisation, revenue sustainability, and correcting distortions in the indirect tax system.
Key Highlights of the Decision
- Two-Tier Rate Structure
- Earlier, GST had multiple slabs (0%, 5%, 12%, 18%, 28%).
- Now, the Council has simplified it to two principal slabs – 5% and 18%, with exceptions for sin goods and essential items.
- Sector-Specific Announcements
- Television Sets: All TVs will now attract 18% GST.
- Health Insurance: No GST on individual health insurance policies.
- Life-Saving Cancer Drugs: Nil GST rate applied, making them more affordable.
- Sin Goods (Cigarettes, Paan Masala, etc.): Attract 40% GST, the highest slab.
- Compensation Cess: Will continue on tobacco and related products until the outstanding loan repayment is completed.
- Inverted Duty Structure
- The Council decided to correct the inverted duty structure, a situation where the tax rate on inputs is higher than on finished goods. This correction is expected to improve efficiency and reduce refund claims.
(Image Source: Indian Express)
Revenue Implications
- Estimated Revenue Impact: Around ₹48,000 crore due to rationalisation.
- Sustainability: Revenue Secretary Arvind Shrivastava said the new rates are fiscally sustainable, and tax buoyancy (higher revenue with economic growth) is expected to balance the shortfall.
Federal Consensus
- The decision was unanimous, with all states supporting the rationalisation.
- Bihar Deputy CM Samrat Choudhary confirmed the consensus approach, while UP Finance Minister Suresh Khanna clarified that the decision on imposing an additional levy on demerit goods beyond 40% is pending.
Broader Significance
- Simplification of GST Regime
- Moving to two main slabs reduces complexity for taxpayers and businesses.
- Enhances compliance and transparency in the system.
- Social Welfare Focus
- Exemption of individual health insurance and life-saving drugs reflects the Council’s welfare orientation.
- Correcting Anomalies
- Addressing the inverted duty structure is critical to boost domestic manufacturing and reduce dependence on refunds.
- Revenue Stability
- With the Centre and states both dependent on GST for fiscal space, rationalisation aims to balance ease of doing business with revenue needs.
Challenges and Concerns
- Revenue Shortfall Risk: A reduction in rates may initially reduce collections before buoyancy kicks in.
- Impact on States’ Finances: States may worry about compensation cess continuation and their fiscal autonomy.
- Sin Goods Policy: While 40% tax remains, debate continues on whether higher rates are needed for both revenue and health policy.
CARE MCQ
Q4. With reference to the decisions of the 56th GST Council meeting, consider the following statements:
- The GST Council approved a new two-tier tax structure with principal slabs of 5% and 18%.
- Individual health insurance policies will now attract 5% GST.
- Life-saving cancer drugs have been placed under the nil GST rate.
- Compensation cess on tobacco and related products will continue until repayment of outstanding loans is completed.
Which of the statements given above are correct?
(A) 1 and 3 only
(B) 1, 3 and 4 only
(C) 2 and 4 only
(D) 1, 2, 3 and 4
Answer 4- B
Explanation
- Statement 1 is correct: The GST Council, in its 56th meeting, rationalised the GST structure into two main slabs — 5% and 18% — effective September 22, 2025.
- Statement 2 is incorrect: Individual health insurance policies were exempted from GST; they do not attract 5% tax.
- Statement 3 is correct: Life-saving drugs for cancer were shifted to the nil rate of GST, enhancing affordability and supporting healthcare access.
- Statement 4 is correct: The Finance Minister clarified that the compensation cess on tobacco products will continue until the loans taken for GST compensation to states are fully repaid.
Therefore, option B is the correct answer.
UPSC PYQ
Q. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (2017)
- It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
- It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
- It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (a)
Supreme Court orders to DISCOMs on regulatory assets
Source: The Hindu
UPSC Syllabus Relevance: GS3 Economy
Context: DISCOMs on regulatory assets
Why in News
The Supreme Court has directed DISCOMs and SERCs to clear regulatory assets within four years, cap them at 3% of ARR, and ensure transparent recovery plans.
Introduction
The Supreme Court recently directed State Electricity Regulatory Commissions (SERCs) and distribution companies (DISCOMs) to:
- Clear existing regulatory assets within four years
- Liquidate any new regulatory assets within three years
- Cap regulatory assets at 3% of Annual Revenue Requirement (ARR)
- Ensure transparent recovery roadmaps and intensive audits
This order comes at a time when many DISCOMs across states, especially in Delhi and Tamil Nadu, have reported massive regulatory assets, threatening the financial health of the power sector.
What are Regulatory Assets?
- Definition: Deferred costs recorded by DISCOMs when their revenue falls short of costs.
- Formula: Regulatory Asset = Average Cost of Supply (ACS) – Annual Revenue Requirement (ARR)
- Mechanism:
- If ACS > ARR → DISCOM incurs loss per unit sold.
- Instead of raising tariffs suddenly, SERCs allow the gap to be carried forward as a regulatory asset, to be recovered later with interest.
Example:
If ACS = ₹7.20/unit and ARR = ₹7.00/unit → Gap = ₹0.20/unit.
For 10 billion units → Shortfall = ₹2,000 crore → recorded as regulatory asset.
(Image Source: The Hindu)
Causes of ACS–ARR Gap
- Non-cost reflective tariffs (political reluctance to increase rates).
- Delayed subsidies from State governments (esp. agriculture, poor households).
- Fuel price fluctuations (coal/gas costs rise suddenly).
- Operational inefficiencies: high transmission & distribution (T&D) losses, theft.
- Cross-subsidisation distortions: commercial/industrial consumers subsidise residential/agriculture → revenue imbalance.
The Scale of the Problem
- Delhi DISCOMs (2022-23 true-up):
- BSES Rajdhani – ₹36,057 crore
- BSES Yamuna – ₹22,040 crore
- Tata Power Delhi Distribution – ₹8,227 crore
- Tamil Nadu (2021-22): ₹89,375 crore regulatory assets
- Punjab (2003-04): First documented case, ₹487 crore gap
If Delhi DISCOMs recover within SC’s 4-year deadline →
- Annual recovery = ~₹16,580 crore
- With consumption of 30 billion units → Tariff rise of ~₹5.5/unit
Impact on Stakeholders
For Consumers
- Short-term benefit: Stable tariffs, no sudden hikes.
- Long-term burden: Steeper tariff increases later, plus carrying costs (interest).
For DISCOMs
- Cash flow crisis: Revenue < cost → delays in paying power generators.
- Debt trap: Borrowing to bridge gaps increases liabilities.
- Operational stagnation: Limited ability to invest in grid upgrades, renewables, and service quality.
For Power Sector
- Generator distress: Payment delays → coal shortages, reduced capacity utilisation.
- Supply chain strain: Cascading effect across generation, transmission, and distribution.
Bridging the ACS–ARR Gap
1. Tariff Reforms
- Cost-reflective tariffs aligned with ACS.
- Targeted subsidies for vulnerable consumers (Direct Benefit Transfer model).
2. Timely Subsidy Release: States must release agricultural & social subsidies without delay.
3. Automatic Cost Pass-Through
- Fuel and Power Purchase Cost Adjustment (FPPCA): allows periodic adjustment to tariffs based on fuel cost fluctuations.
4. Regular True-up: Annual reconciliation of projected vs. actual costs → prevents backlog.
5. Strong Regulatory Oversight
- Enforce cap of 3% ARR on regulatory assets.
- Transparent accounting and strict audits.
Global Best Practices
- Regulated Asset Base (RAB) Model – UK & Europe
- Utilities recover investments via tariffs with a regulated rate of return.
- Provides long-term revenue certainty.
- RIIO Model (UK)
- Revenue = Incentives + Innovation + Outputs.
- Links utility revenue to performance (reliability, carbon reduction, service).
- Lessons for India
- Transparent valuation of regulatory assets.
- Digital grids & India Energy Stack for efficient monitoring.
- Linking consumer tariffs to performance and sustainability.
Supreme Court’s Directive – Significance
- Time-bound liquidation of legacy and new assets.
- Financial discipline enforced on DISCOMs and SERCs.
- Pushes towards structural reforms in tariff setting, subsidy release, and auditing.
- Aligns with India’s energy transition goals (500 GW non-fossil capacity by 2030).
Way Forward
- For DISCOMs: Improve efficiency, reduce T&D losses, adopt smart metering.
- For States: Stop populist tariff freezes, ensure timely subsidy transfers.
- For Regulators: Enforce transparency, penalise inefficiency.
- For Consumers: Accept rational tariffs, while protecting the poor via DBT subsidies.
Conclusion
- Regulatory assets reflect a systemic weakness in India’s power sector: the balancing act between affordability, subsidy dependence, and cost recovery.
- The Supreme Court’s intervention is a reminder that deferred recoveries cannot be a permanent solution.
- Only coordinated action between consumers, governments, regulators, and DISCOMs can ensure that electricity remains affordable for households and financially sustainable for utilities.
CARE MCQ
Q5. Consider the following statements regarding regulatory assets in India’s power sector:
- Regulatory assets represent the deferred revenue gap between the Average Cost of Supply (ACS) and the Annual Revenue Requirement (ARR).
- The Supreme Court has mandated that existing regulatory assets must be cleared within four years, while new assets must be liquidated within three years.
- Regulatory assets reduce carrying costs for DISCOMs as they postpone tariff recovery.
- The Supreme Court has directed that regulatory assets should not exceed 3% of a DISCOM’s ARR.
Which of the above statements is/are correct?
(A) 1 and 2 only
(B) 1, 2 and 4 only
(C) 1, 3 and 4 only
(D) 2 and 3 only
Answer 5- B
Explanation
- Statement 1 is correct: Regulatory assets are created when the Average Cost of Supply (ACS) exceeds the Annual Revenue Requirement (ARR). Instead of immediately hiking tariffs, the gap is deferred and recorded as a regulatory asset for recovery in the future.
- Statement 2 is correct: The Supreme Court has clearly set timelines — existing regulatory assets must be liquidated within four years, and any new assets within three years.
- Statement 3 is incorrect: Far from reducing carrying costs, regulatory assets increase the financial burden because they attract interest (carrying cost). This worsens DISCOMs’ debt and cash flow pressures.
- Statement 4 is correct: The apex court capped regulatory assets at 3% of the Annual Revenue Requirement (ARR) to enforce discipline and prevent excessive deferrals.
Therefore, option B is the correct answer.
UPSC PYQ
Q. Which one of the following is the purpose of ‘UDAY’, a scheme of the Government? (2016)
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the country by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution
Health Ministry to Amend 2019 Rules for New Drugs and Clinical Trials
Source: The Hindu
UPSC Syllabus Relevance: GS3 Public Health
Context: New Drugs and Clinical Trials
Why in News?
The Union Health Ministry has proposed amendments to the New Drugs and Clinical Trials Rules, 2019 to streamline test licences and simplify procedures for bioavailability/bioequivalence (BA/BE) studies.
Introduction
- The Union Health Ministry has proposed amendments to the New Drugs and Clinical Trials Rules, 2019, with the aim of simplifying regulatory procedures for the pharmaceutical and clinical research sectors.
- These amendments, published in the Gazette of India on August 28, 2025, are currently open for public comments and are expected to streamline processes, reduce delays, and promote ease of doing business.
Background
- The New Drugs and Clinical Trials (NDCT) Rules, 2019 were framed to regulate the approval of new drugs, clinical trials, bioavailability (BA) and bioequivalence (BE) studies, and ethics committee oversight.
- However, stakeholders in the pharmaceutical industry and clinical research organisations (CROs) have expressed concerns over lengthy approval timelines and cumbersome licensing processes, which often delay drug development and market access.
- To address these challenges, the Health Ministry has proposed regulatory reforms that would make the process more efficient without compromising safety standards.
(Image Source: The Hindu)
Key Proposed Amendments
- Conversion of Test Licence System
- Current system: Applicants must apply for and wait to obtain a test licence before conducting studies, which often takes up to 90 days.
- Proposed system:
- Replaced with a notification and intimation system.
- Applicants need only intimate the Central Licensing Authority (CLA) instead of waiting for licence approval (except in the case of high-risk drugs).
- Processing time will be reduced to 45 days.
- Simplification for Bioavailability/Bioequivalence (BA/BE) Studies
- Existing system: Requires a formal licence for all BA/BE studies.
- Proposed amendment: For low-risk categories, BA/BE studies can begin immediately after intimation/notification to the CLA.
- Licence requirement will remain only for high-risk drugs.
- Reduction in Application Load
- The reforms are expected to cut the number of test licence applications by nearly 50%, reducing administrative burden.
- Efficiency and Resource Optimisation
- The Central Drugs Standard Control Organisation (CDSCO) will be able to deploy its human resources more effectively by focusing on high-risk applications.
- Expected to enhance regulatory oversight while maintaining quality and safety standards.
Benefits of the Amendments
- For Industry:
- Quicker initiation of drug development processes.
- Reduced waiting time for approvals.
- Improved ease of doing business in pharmaceuticals and clinical research.
- For Regulators (CDSCO):
- Optimisation of manpower and regulatory efficiency.
- Focus shifts to high-risk drugs requiring detailed scrutiny.
- For Patients/Public Health:
- Faster availability of new medicines.
- Encouragement of innovation in drug discovery and development.
Challenges & Considerations
- Risk Management: While low-risk studies are streamlined, ensuring that safety standards are not compromised is crucial.
- Transparency: The new intimation-based system must ensure accountability to avoid misuse.
- Capacity Building: CDSCO will need training and technological upgrades to handle faster workflows effectively.
Way Forward
- Balanced Approach: Streamlining must not dilute safety and ethical standards of clinical research.
- Digitalisation: Adoption of online tracking systems for faster processing and transparency.
- Periodic Review: The amended rules should be periodically evaluated for effectiveness and unintended consequences.
- Global Standards: Alignment with international best practices (such as US FDA and EMA) to enhance India’s global competitiveness.
CARE MCQ
Q6. Consider the following statements regarding the proposed amendments to the New Drugs and Clinical Trials (NDCT) Rules, 2019:
- The present system of test licences will be replaced with a notification and intimation system, except for certain high-risk drugs.
- The statutory processing time for test licence applications will be reduced from 90 days to 45 days.
- All categories of bioavailability/bioequivalence (BA/BE) studies will continue to require a formal licence before initiation.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Answer – 6 – A
Explanation –
- Statement 1 is correct: The proposed amendment replaces the current test licence system with a notification and intimation model. Applicants will no longer need to wait for licences except in the case of high-risk drugs.
- Statement 2 is correct: The statutory processing time for test licence applications has been reduced from 90 days to 45 days, thereby speeding up approvals.
- Statement 3 is incorrect: The new rules allow certain low-risk BA/BE studies to begin upon intimation to the Central Licensing Authority (CLA), without a formal licence.
Therefore, option A is the correct answer.
UPSC PYQ
Q. Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? (2019)
- Genetic predisposition of some people
- Taking incorrect doses of antibiotics to cure diseases
- Using antibiotics in livestock farming
- Multiple chronic diseases in some people
Select the correct answer using the code given below.
(a) 1 and 2
(b) 2 and 3 only
(c) 1, 3 and 4
(d) 2, 3 and 4
Ans: (b)
INS Trikand and Exercise Bright Star 2025
Source: The Hindu
UPSC Syllabus Relevance: GS 3 Defence
Context: INS Trikand, Exercise Bright Star 2025
Why in News?
INS Trikand reached Alexandria, Egypt, on September 1, 2025, to participate in Exercise Bright Star 2025, a major multilateral tri-service drill hosted by Egypt under U.S. Central Command.
Introduction
- INS Trikand, a frontline stealth frigate of the Indian Navy, reached Alexandria, Egypt on September 1, 2025 to participate in Exercise Bright Star 2025.
- This exercise is one of the largest multilateral military drills in the Middle East–North Africa (MENA) region, hosted by Egypt under the aegis of the U.S. Central Command (CENTCOM).
- The participation of the Indian Navy, Army, and Air Force marks a tri-service engagement, underlining India’s growing role in regional and extra-regional security cooperation.
About Exercise Bright Star
- Origin: Initiated in 1980 as a bilateral drill between the U.S. and Egypt; later expanded into a multilateral exercise.
- Nature: Joint air, land, and maritime exercise aimed at enhancing interoperability, combat readiness, and coordination against hybrid threats (terrorism, asymmetric warfare, cyber and maritime challenges).
- Bright Star 2025: Held from 1–10 September 2025 with participation from India, Egypt, U.S., Saudi Arabia, Qatar, Greece, Cyprus, and Italy.
Image Source: the Hindu
India’s Participation
- INS Trikand:
- Part of the Talwar-class stealth frigates (Russian-origin, modified for Indian Navy).
- Equipped with advanced sensors, missiles, and anti-submarine warfare capability.
- Represents India’s Blue-Water Navy profile and long-range deployment capability.
- Tri-Service Involvement:
- Indian Navy – INS Trikand in maritime exercises.
- Indian Army & Air Force – participation in land and air drills, making it a comprehensive engagement.
- Activities at Alexandria:
- Professional exchanges (meetings with senior military officials).
- Cross-deck visits, sports events, and cultural interactions.
- Designed to deepen bilateral (India–Egypt) and multilateral defence ties.
Strategic Significance for India
1. Strengthening India–Egypt Ties
- Egypt is a key partner in the Arab world and North Africa.
- Defence cooperation is a growing pillar of the bilateral relationship (e.g., 2023 India–Egypt strategic partnership upgrade).
- Port calls and joint training reinforce political trust and military interoperability.
2. Deepening Multilateral Cooperation
- India engages with NATO allies (U.S., Greece, Italy), West Asian partners (Saudi Arabia, Qatar), and regional power Egypt simultaneously.
- Enhances strategic visibility of India in the Mediterranean and West Asia.
3. Operational and Strategic Benefits
- Interoperability: Working with diverse militaries under realistic combat settings.
- Hybrid Threats: Exposure to multinational responses against terrorism, cyber, and maritime challenges.
- Projection of Blue-Water Capability: INS Trikand’s deployment shows India’s ability to sustain operations in distant waters.
4. Linkages to Indian Naval Strategy
- Aligned with India’s doctrine of SAGAR (Security and Growth for All in the Region).
- Expands India’s maritime partnerships beyond the Indian Ocean into the Mediterranean Sea.
- Helps build a counter-narrative to growing Chinese naval presence in the Middle East and Africa.
Conclusion
- The participation of INS Trikand in Exercise Bright Star 2025 reflects India’s proactive defence diplomacy, strategic outreach to the Mediterranean, and growing tri-service operational engagement.
- It highlights India’s intent to shape regional security architectures beyond its immediate neighbourhood, contributing to both traditional maritime security and non-traditional challenges.
CARE MCQ
Q7. With reference to Exercise Bright Star 2025, consider the following statements:
- It is a multilateral exercise hosted by Egypt and conducted under the aegis of U.S. Central Command.
- India is participating in the exercise with its Navy, Army, and Air Force, marking a tri-service engagement.
- Exercise Bright Star was first held in 2005 as part of the India–Egypt defence cooperation framework.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Answer – 7 – A
Explanation –
- Statement 1 is correct: Exercise Bright Star is hosted by Egypt and conducted under the U.S. Central Command (CENTCOM) framework. It involves air, land, and maritime forces from multiple nations.
- Statement 2 is correct: India is participating with the Indian Navy (INS Trikand), Army, and Air Force, making it a significant tri-service engagement.
- Statement 3 is incorrect: The exercise was not started in 2005 under India–Egypt cooperation. It actually began in 1980 as a bilateral exercise between the U.S. and Egypt, and was later expanded into a multilateral drill.
Therefore, option A is the correct answer.
UPSC PYQ
Q. Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? (2016)
- Amphibious warfare ship
- Nuclear-powered submarine
- Torpedo launch and recovery vessel
- Nuclear-powered aircraft carrier
Answer: (c)
Exercise Yudh Abhyas 2025 – India–US Joint Military Drill in Alaska
Source: Indian Express
UPSC Syllabus Relevance: GS3 Defence
Context: Exercise Yudh Abhyas 2025
Why in News?
Indian and US troops are participating in the 21st edition of Exercise Yudh Abhyas (2025) at Fort Wainwright, Alaska, focusing on high-altitude warfare, multi-domain operations, and UN peacekeeping preparedness.
Introduction
- Indian and American troops have gathered at Fort Wainwright, Alaska, for the 21st edition of Exercise Yudh Abhyas (September 1–14, 2025).
- The exercise comes at a time of tariff disputes and strategic divergences between New Delhi and Washington, but it underlines the resilience of bilateral defence cooperation.
Background
- Initiated in 2004 under the framework of the US Army Pacific Command.
- Conducted annually, alternating between India and the United States.
- One of the largest bilateral military exercises involving the Indian Army.
- Forms part of the broader US–India defence cooperation framework (2013 Joint Declaration, 2015 Defence Framework, LEMOA, COMCASA, BECA).
Participants in 2025
- India: Battalion from the Madras Regiment.
- USA: Soldiers from the 1st Battalion, 5th Infantry Regiment ‘Bobcats’, part of the Arctic Wolves Brigade Combat Team, 11th Airborne Division.
(Image Source: Indian Express)
Key Drills and Focus Areas
According to the Ministry of Defence:
- Tactical drills: heliborne operations, casualty evacuation, combat medical aid.
- Warfare training: rockcraft, mountain and high-altitude warfare.
- Technology integration:
- Use of unmanned aerial systems (UAS).
- Counter-UAS operations.
- Surveillance and electronic warfare.
- Artillery and aviation coordination.
- Joint tactical manoeuvres: live-fire drills, multi-domain operations.
- Peacekeeping focus: strengthening interoperability for UN Peacekeeping Operations (UNPKOs).
Recent India–US Defence Engagements
- USS Frank Cable (submarine support ship) visited Chennai in August 2025, underscoring naval cooperation in the Indo-Pacific.
- Key Agreements signed (2016–2024):
- LEMOA (2016) – logistics sharing.
- COMCASA (2018) – secure communications.
- BECA (2020) – geospatial cooperation.
- SOSA (2024) – Security of Supply Arrangement.
- MoA on Liaison Officers (2024) – closer coordination.
Defence Procurements and Joint Projects
- From US:
- 24 MH-60R Seahawk helicopters (contract signed 2020; deliveries ongoing).
- 145 M777 Ultra-Light Howitzers.
- Sig Sauer 716 rifles (72,400 in 2019 + 73,000 more in 2024).
- Joint Development & Technology Transfer:
- GE F-414 engines to be co-produced in India for LCA Mk-2 fighters (80% ToT assured).
- 31 MQ-9B HALE UAVs (contract signed October 2024; Rs 28,000 crore).
- Deliveries of GE F-404 engines for Tejas Mk-1A underway.
Strategic Significance
- Operational Readiness: Enhances capacity for high-altitude and Arctic warfare, critical for Indian deployments along the Himalayan frontier.
- Interoperability: Strengthens ability to operate in multi-domain battlefields with advanced surveillance, communication, and EW systems.
- Indo-Pacific Security: Complements naval and air cooperation; aligns with India’s role in the Quad security framework.
- Resilience of Defence Ties: Demonstrates that despite trade frictions, tariff issues, and energy-related disagreements, military cooperation remains strong.
- UN Peacekeeping: Helps prepare contingents for global peace support operations.
Challenges
- Tariff and Trade Tensions: Disputes over tariffs and India’s purchase of Russian oil.
- Technology Transfer Sensitivities: Concerns about depth of US technology sharing.
- Balancing Partnerships: India’s need to maintain defence ties with Russia while expanding with the US.
Conclusion
- Exercise Yudh Abhyas 2025 is not just a tactical drill but a strategic signal of continuity in India–US defence ties.
- Against the backdrop of global shifts and regional tensions, it reinforces trust, interoperability, and preparedness for multi-domain operations, while balancing India’s broader strategic autonomy.
CARE MCQ
Q8. Consider the following statements about Exercise Yudh Abhyas:
- It is an annual joint military exercise between the Indian Army and the US Army, conducted alternately in India and the US.
- The 21st edition (2025) is being held in Alaska, with Indian troops from the Madras Regiment and US soldiers from the Arctic Wolves Brigade Combat Team.
- The exercise focuses exclusively on naval operations in the Indo-Pacific region.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer – 8 – B
Explanation –
- Statement 1 is correct: Yudh Abhyas is a bilateral annual military exercise between the Indian Army and the US Army. It has been conducted since 2004 and is held alternately in India and the United States.
- Statement 2 is correct: The 21st edition (2025) is being held at Fort Wainwright, Alaska. The Indian contingent is drawn from the Madras Regiment, while the US contingent belongs to the Arctic Wolves Brigade Combat Team, 11th Airborne Division.
- Statement 3 is incorrect: The exercise does not focus on naval operations. Instead, it covers land-based tactical drills such as high-altitude warfare, heliborne operations, surveillance using UAVs, casualty evacuation, and preparation for UN peacekeeping missions. Naval cooperation happens under other platforms like MALABAR.
Therefore, option B is the correct answer.
UPSC PYQ
Q. Which of the following statements about Exercise Mitra Shakti-2023 are correct? (2024)
1. This was a joint military exercise between India and Bangladesh.
2. It commenced in Aundh (Pune).
3. Joint response during counter-terrorism operations was a goal of this operation.
4. Indian Air Force was a part of this exercise,
Select the answer using the code given below:
(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 1, 3 and 4
(d) 2, 3 and 4
Ans: (d)
