APPSC Daily Current Affairs - 8th December 2025
Source: Deccan Chronicle
Relevance: Programmes and Projects under State Government
Why in News?
- AP CM N. Chandrababu Naidu directed completion of Polavaram by July 2027, six months before the official deadline (Dec 2027).
- Purpose: operational readiness before Godavari Pushkaralu 2027.
- 80% of headworks completed, officials confident of finishing major construction by July 2027.
Strategic Background Of The Polavaram Project
- A National Multipurpose Irrigation Project on the Godavari River.
- Supports irrigation, drinking water, hydropower, and flood mitigation.
- Crucial for Godavari–Krishna delta stability.
- Intended to transform irrigation across East Godavari, West Godavari, Visakhapatnam, and Krishna districts.
Government Push For Early Completion (July 2027)
- CM reviewing progress through regular high-level meetings.
- State approaching Centre for faster fund releases.
- Drawings & designs being processed quickly for CWC approval.
- International experts engaged for technical troubleshooting.
- Multiple central agencies supporting execution of complex components.
Engineering Progress & Project Components
A. Headworks
- 80% completed according to senior officials.
B. Diaphragm Wall Works
- Completed: 50,858 sq.m
- Total: 65,352 sq.m
- Completion: 78%
- Target: February 2026
C. ECRF (Earth-cum-Rockfill) Dam
- Gap-1 embankment (25m → 38.32m): To finish by March 2026
- Gap-2 embankment: Target advanced to July 2027 (original: December 2027)
D. Dam Storage Levels
- Initial height: 41.11 m → 124.2 TMC storage
- Final FRL height: 45.72 m → 194.6 TMC storage
E. Phased Water Filling
Water will be released into the reservoir only after:
- Structural stability checks
- Leakage inspections
- Engineering validation & safety clearance
Irrigation & Command Area Benefits
New Command Area:
- 7.2 lakh acres
Stabilisation of Existing Area:
- 13.5 lakh acres under:
- Sir Arthur Cotton Barrage
- Prakasam Barrage
District-wise Canal Coverage
| Canal | Districts Covered | Area Covered |
| LMC (Left Main Canal) | East Godavari, Visakhapatnam | 4 lakh acres |
| RMC (Right Main Canal) | West Godavari, Krishna | 3.2 lakh acres |
- RMC works almost completed
- LMC works still ongoing
Storage Capacity & Safety Testing
- Filling of reservoir will be gradual.
- Each phase requires:
- Dam stability tests
- Structural integrity review
- Managing seepage risks
- Compliance with national dam safety norms
Land Acquisition Status
- Required: 1,00,099 acres
- Acquired: 91,127 acres
- Remaining: ~9,000 acres to be acquired by March 2026
Rehabilitation & Resettlement (R&r)
Total Project Displaced Families (PDF) Identified: 38,060 families
Shifted so far: 14,385 families
Yet to be shifted: 23,675 families
Deadline: March 2027
Housing for PDFs
- Provided: 15,439 households
- Pending: 18,921 households
- Deadline: March 2027
Administrative & Governance Interventions
- Coordination with Central Water Commission for approvals.
- International engineering experts consulted for quality assurance.
- Multi-agency collaboration on major dam components.
- State pushing for accelerated central fund release.
- Regular reviews ensuring adherence to revised construction timelines.
Challenges
- Large pendency in R&R: 23,000+ families
- LMC incomplete → major bottleneck
- Inter-state coordination needed (Telangana & Chhattisgarh)
- Environmental impact & tribal displacement concerns
- Ensuring structural safety during phased filling
- Budgetary constraints
- Seasonal monsoon effects on construction timelines
Way Forward
- Prioritise LMC completion & ECRF Gap-II works
- Strengthen dam monitoring & instrumentation systems
- Speed up acquisition with transparent compensation
- Ensure humane R&R with timely housing delivery
- Improve cooperation with Centre for approvals & fund flow
- Deploy real-time dashboards for public accountability
Care Mcq
Q. With reference to the Polavaram Irrigation Project, consider the following statements:
- The Full Reservoir Level (FRL) of Polavaram is 45.72 metres.
- The Left Main Canal covers a larger area than the Right Main Canal.
- The Diaphragm Wall works are scheduled for completion in 2027.
- The project aims to stabilise more than 10 lakh acres of existing command area.
How many of the above statements are correct?
(a) One
(b) Two
(c) Three
(d) All fourAnswer: (c) Three
Statement 1: The Full Reservoir Level (FRL) of Polavaram is 45.72 metres. Correct
- At this height, the dam stores 194.6 TMC of water.
Statement 2: The Left Main Canal covers a larger area than the Right Main Canal. Correct
- Left Main Canal (LMC) → Covers 4 lakh acres (East Godavari + Visakhapatnam)
- Right Main Canal (RMC) → Covers 3.2 lakh acres (West Godavari + Krishna)
Since 4 lakh acres > 3.2 lakh acres, LMC covers a larger area.
Statement 3: The Diaphragm Wall works are scheduled for completion in 2027. Incorrect
- Diaphragm Wall works are targeted to be completed by February 2026.
- 2027 is the early completion deadline for ECRF Gap-II, NOT the D-wall.
Statement 4: The project aims to stabilise more than 10 lakh acres of existing command area. Correct
- The project will stabilise 13.5 lakh acres under:
- Sir Arthur Cotton Barrage
- Prakasam Barrage
13.5 lakh > 10 lakh, so the statement is correct.
Therefore, Statement 4 is correct.
Source: The Hindu
Relevance: GS Paper III – Economy / Agriculture
Important Key Concepts for Prelims and Mains:
For Prelims:
Circular Economy (CE),Bio-CNG & Bio-Fertiliser Plants. White Revolution 2.0, Banas Dairy Model, Mission LiFE (Lifestyle for Environment)
For Mains:
Waste-to-Wealth Approach in Agriculture, Cooperative Federalism in Dairy Sector, Resource Efficiency & Sustainable Rural Livelihoods, Women-led Dairy Value Chains
Circular Economy Mission & Atmanirbhar Bharat
Why in News?
At Banaskantha (Gujarat) the Union Home and Cooperation Minister inaugurated Banas Dairy’s bio-CNG and bio-fertiliser plant and laid the foundation for a milk-powder unit. He highlighted how a circular-economy model in dairying can raise farmers’ incomes by about 20% over five years — positioning Banas as a national model for “White Revolution 2.0”.
What is a circular economy (CE)?
A Circular Economy shifts from the traditional “take–make–dispose” model toward:
India’s Milk Production Profile
- Dairy is India’s largest agricultural product, contributing 3.5% to GDP.
- Milk production (2023–24): 239.3 MMT, ~25% of global production → World’s largest producer.
- Producer-level consumption: 88 MMT (37%).
- Marketable surplus: 150 MMT.
- Organised sector handles only 32% (47 MMT).
- Unorganised sector handles 68% (102 MMT).
- Cooperative share in organised sector: 56% (~26 MMT).
Milk Yield (per animal per day)
- Exotic/crossbred cattle: 8.55 kg
- Indigenous/nondescript cattle: 3.44 kg
Per Capita Availability
- India: 459 g/day
- Global average: 323 g/day
Top 5 Milk Producing States (BAHS 2023)
- Uttar Pradesh (15.72%)
- Rajasthan (14.44%)
- Madhya Pradesh (8.73%)
- Gujarat (7.49%)
- Andhra Pradesh (6.70%)
Contribution by Species
- Indigenous buffaloes: 31.94%
- Crossbred cattle: 29.81%
- Nondescript buffaloes: 12.87%
- Indigenous cattle: 10.73%
- Nondescript cattle: 9.51%
- Goat milk: 3.30%
- Exotic cows: 1.86%
- Reuse
- Repair
- Refurbish
- Recycle
This approach aims to keep resources in use longer, eliminate waste, and regenerate natural ecosystems.
Key Features of CE
- Closed-loop system
- Designs out waste
- Regenerates natural resources
- Contrast with Linear Economy
- Moves beyond simple extraction → production → disposal
- Key Activities
- Sharing, leasing
- Repairing, remanufacturing
- Organic recycling, waste-to-energy
Why apply CE to dairy?
India’s dairy sector is vast and rural-deep: it links millions of smallholders, sustains livelihoods, and is central to rural economies and women’s income. Applying CE in dairying can:
- Create additional farm income streams (bio-CNG, organic fertiliser, milk-powder and value-added products).
- Reduce dependence on chemical fertilisers and fossil fuels, improving soil health and energy security.
- Strengthen rural MSMEs, cold-chain and processing capacities, and boost export potential.
- Promote cooperative federalism by scaling cooperative-led models across districts and states.
Practical elements of the dairy circular model
- Waste-to-wealth: Cattle dung → anaerobic digestion → bio-CNG + bio-manure.
- Product diversification: Expand beyond fluid milk into milk powder, nutraceuticals, specialty cheeses and other value-added products for domestic and export markets.
- By-product utilisation: Leather from naturally deceased cattle (regulated), whey & other dairy residues for food/industrial use.
- Energy & storage: On-site renewable generation and battery/storage systems to firm up variable renewable supply.
- Institutional integration: Cooperatives as nodal implementation units for technology, finance, marketing and capacity building.
Banas Dairy— a scaling blueprint
Banas Dairy (Asia’s largest dairy cooperative) demonstrates integrated CE features: bio-CNG plant, organic fertiliser production, large-scale milk processing and upcoming milk-powder capacity. Its strengths include cooperative governance, integrated value chains, and capacity to absorb technology and finance — qualities that make it suited for replication across other major dairy cooperatives.
Policy & institutional enablers
- Cooperative strengthening: Support to federations and primary societies for project finance and technical know-how.
- Financial instruments: Affordable credit, targeted grants, concessional loans for bio-CNG and processing plants (NABARD, cooperative banks).
- Market & standards: Export promotion (APEDA), quality certification for organic fertiliser and value-added dairy products.
- Convergence with national missions: Aligns with White Revolution 2.0, Doubling Farmers’ Income, Mission LiFE and Circular Economy Mission.
- Women empowerment: Direct bank credit, SHG/‘Lakhpati Didi’ linkages and women-led dairy entrepreneurship.
Benefits (economic, environmental, social)
- Farmer income rise via sale of bio-CNG credits, fertiliser and higher-value dairy products.
- Energy security: Reduced fossil fuel consumption and stable local energy supply.
- Soil health & reduced chemical use from organic manures.
- Job creation in rural processing, logistics and bio-energy sectors.
- Gender inclusion through women-centred cooperative models.
Role of Women in the Circular Dairy Economy
Women in Gujarat’s dairy cooperatives have demonstrated exceptional:
- Entrepreneurship
- Financial discipline (direct bank transfers)
- Leadership in SHG-led dairy models
This becomes a strong example of women-led development, aligning with the G20 theme.
Key challenges
- Capital intensity of waste-to-energy and processing infrastructure; small societies may lack finance.
- Technology access & skills gap for operation and maintenance of digesters, storage and value-addition units.
- Cold-chain & logistics deficiencies in remote regions limit product diversification.
- Market linkages and export readiness for niche dairy products need strengthening.
- Regulatory & ethical issues around leather from naturally deceased cattle require clear norms.
Way forward
- Scale modular CE units: Promote cluster-level bio-CNG and fertiliser plants that serve groups of villages/cooperatives.
- Blended finance: Use public funds for social cushions and de-risking; mobilise private capital for infrastructure. District Mineral Foundation and Green Transition funds can be repurposed in mining/dairy belts.
- Capacity building: Large-scale skilling for cooperative managers, women entrepreneurs and technicians; knowledge exchange visits to Banas.
- Market creation: Support branding, quality certification, cold-chain PPPs and export promotion for value-added dairy goods.
- Policy nudges: Tax/credit incentives for waste-to-energy, standardisation of organic fertiliser, and faster approvals for cooperative projects.
- Women-centred programs: Prioritise women’s control of income flows, leadership in SHGs and access to micro-workspaces (Sakhi Niwas/Shakti Sadans).
Conclusion
A circular economy in dairying is not merely waste management — it is a structural reform that links climate action, rural prosperity and cooperative empowerment. Banas Dairy’s model shows the roadmap: integrate waste-to-energy, product diversification and cooperative financing to make dairying more resilient, climate-friendly and income-generating. With targeted finance, market support, skilling and regulatory clarity, India can scale this model nationwide — delivering higher incomes to farmers while advancing its clean-energy and sustainability goals.
UPSC PYQ
Q. Operation Flood’ is also popularly known as (CAPF 2022)
(a) The Green Revolution
(b) The White Revolution
(c) The Blue Revolution
(d) The Yellow Revolution
Correct Answer:(b) The White Revolution
- Operation Flood (1970) was the world’s largest dairy development programme.
- Led to India becoming the world’s largest milk producer.
- Architect: Dr. Verghese Kurien (“Father of the White Revolution”).
- Implemented through NDDB (National Dairy Development Board).
CARE MCQ
Q. Arrange the following States in descending order of milk production as Basic Animal Husbandry Statistics (BAHS) 2023:
- Gujarat
- Uttar Pradesh
- Andhra Pradesh
- Rajasthan
- Madhya Pradesh
Select the correct answer using the codes below:
(a) 2-4-5-1-3
(b) 4-2-1-5-3
(c) 2-4-3-5-1
(d) 4-1-5-2-3
Correct Answer: (a) 2-4-5-1-3
Explanation :
As per BAHS 2023, the top five milk-producing States and their percentage contribution are:
- Uttar Pradesh (UP) – 15.72% → Highest
- Rajasthan – 14.44%
- Madhya Pradesh (MP) – 8.73%
- Gujarat – 7.49%
- Andhra Pradesh (AP) – 6.70%
Source: PIB (4th Dec 2025)
Relevance: Facts about Banking Laws (Amendment) Act 2025, GS-3 (Indian Economy – Banking, Governance, Financial Sector Reforms)
Important Key Concepts for Prelims and Mains:
For Prelims:
- RBI Act, 1934, Banking Regulation Act, 1949, Banking Regulation Amendment 2020, Banking Laws (Amendment) Act, 2025, key reforms
For Mains:
- Evolution of India’s Banking Laws, Why the Banking Amendment Act, 2025 Was Needed, Key Reforms Under the Banking Laws (Amendment) Act, 2025, Harmonisation across RBI Act, BR Act, SBI Act, and Nationalisation Acts (1970, 1980), Aligning banking governance with modern risk environment.
Why in News?
The Banking Laws (Amendment) Act, 2025 is a step towards strengthening governance standards in the banking sector by ensuring uniformity in reporting by banks to the Reserve Bank of India along with improved audit quality in public sector banks (PSBs). The act enhances depositor and investor protection by promoting customer convenience through improved nomination facilities.
- The Banking Laws (Amendment) Act, 2025 was recently notified in two stages (Aug 1 & Nov 1, 2025).
- It amends five major banking legislations, aiming to strengthen governance, depositor protection, audit transparency, and cooperative bank regulation.
- It modernises succession, reporting deadlines, nomination mechanisms, and governance norms in line with India’s digital banking ecosystem.
Evolution of India’s Banking Laws
India’s banking regulation has evolved alongside the country’s economic and institutional development, guided by five cornerstone legislations that continue to define its financial architecture.
- RBI Act, 1934
- Created RBI, empowered note issuance, monetary stability, credit regulation.
- Supported institutions like Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development.
- Banking Regulation Act, 1949
- Consolidates control over Indian banking system; provides operational & prudential regulation.
- State Bank of India Act, 1955
- Converted Imperial Bank → SBI; expanded rural & semi-urban banking.
- Nationalisation Phases
- 1969: 14 major banks nationalised.
- 1980: Additional banks nationalised.
- Reforms of 1990s & 2000s
- Banking Regulation (Amendment) Act, 1994, the Banking Companies (Acquisition and Transfer of Undertakings) Amendment Act, 1994 and the Banking Regulation (Amendment) Act, 2007, the Banking Laws (Amendment) Act, 2012 relating to governance, capital flexibility, Statutory Liquidity Ratio (SLR) or Cash Reserve Ratio (CRR) based liquidity management were introduced, reforming India’s banking framework. Amendments to strengthen governance, capital flexibility, CRR/SLR regulations.
- Banking Regulation (Amendment) Act, 2020
- Gave RBI greater control over cooperative banks.
- The Banking Laws (Amendment) Act, 2025
It amends five acts viz.
- Reserve Bank of India Act, 1934,
- Banking Regulation Act, 1949,
- State Bank of India Act, 1955,
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
The move aims to enhance banking governance, improve audit transparency, strengthen depositor protection, and bring cooperative banks under a more robust regulatory framework.
Why the Banking Amendment Act, 2025 Was Needed
- Asset Succession Clarity: Many disputes & delays due to lack of nomination clarity.
- Uniform Terminology: Outdated definitions hindered digital adoption & compliance.
- Reduced Manual Work: Old reporting systems (“last Friday”) misaligned with automated accounting cycles.
- Strengthen Cooperative Bank Governance: To align with 97th Constitutional Amendment.
- Enhance Depositor Protection: Rising unclaimed deposits demanded systemic clarity.
Key Reforms Under the Banking Laws (Amendment) Act, 2025
1. Modernised Nomination Framework (Sections 10 – 13)
- Up to four nominees allowed per account.
- Simultaneous nomination: percentage-wise allocation totalling 100%.
- Successive nomination: auto-succession if one nominee dies (esp. for lockers / safe custody).
- Designed to reduce legal disputes, smoothen asset transfer.
2. Redefinition of ‘Substantial Interest’ (Section 3)
- Old limit: ₹5 lakh (1968) → Updated to ₹2 crore.
- Aligns governance standards with present-day economic realities.
- Prevents undue influence by individuals holding small legacy thresholds.
3. Governance in Cooperative Banks (Sections 4 & 14)
- Maximum tenure of directors increased from 8 years → 10 years (excluding chairperson & WTDs).
- Aligns with the 97th Constitutional Amendment on democratic governance.
- Strengthens oversight and professionalism in cooperative banks.
4. Audit Reforms in Public Sector Banks (Sections 15 – 20)
- PSBs empowered to fix auditor remuneration.
- Can transfer unclaimed shares, interest, redemption amounts to IEPF — similar to Companies Act norms.
- Boosts audit quality and financial transparency.
5. Procedural & Reporting Efficiency
- Outdated expressions like “last Friday” replaced with “last day of the month/fortnight.”
- Supports automated reporting, reduces manual workloads.
Impact of the Banking Reforms with National Vision
A major step in fortifying the legal, regulatory, and governance structure of the Indian banking sector has been taken with the implementation of these laws. The 2025 amendments shall have a transformative impact on depositors and service providers.
Depositor-centric: The Act includes robust measures to safeguard public trust in banking institutions by simplified claim settlement for their families.
Enhanced Governance: The revised threshold for “substantial interest” reflects inflation and growth. The maximum tenure for cooperative bank directors (excluding the Chairperson and whole-time directors) now aligns with the 97th Constitutional Amendment indicating the democratic outlook.
Improved Financial Transparency: Transfer to the Investor Education and Protection Fund aims at creating a more transparent system for fund management.
Enhanced Audit Quality: The PSBs will now be able to attract more qualified professionals and improve audit quality by paying better auditor remuneration.
Improved Operational Efficiency: The Act simplifies certain procedures, such as updating certain operational definitions.
Challenges
- Banks must overhaul nomination systems across millions of accounts.
- Digital readiness varies across cooperative banks.
- Public awareness on new nomination rules remains limited.
- Proper execution of governance norms in cooperatives may face resistance.
Way Forward
- Nationwide awareness campaigns on new nomination rules.
- Strengthen digital infrastructure in cooperative banks.
- Create uniform, tech-enabled succession platforms.
- Continuous monitoring by RBI to ensure compliance and reduce systemic risks.
UPSC PYQ
Q. With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)
- The Governor of RBI is the Chairman of BBB.
- BBB recommends for the selection of heads for Public Sector Banks.
- BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (b)
Q. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: (2021)
- They are supervised and regulated by local boards set up by the State Governments.
- They can issue equity shares and preference shares.
- They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (b)
CARE MCQ
Q1. With reference to the Banking Laws (Amendment) Act, 2025, consider the following statements:
- The Act allows depositors to nominate up to four persons for their accounts.
- The definition of “substantial interest” has been increased from ₹5 lakh to ₹2 crore.
- Cooperative bank directors can now serve a maximum tenure of 15 years.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (b)
Explanation:
- 1 ✓ Correct
- 2 ✓ Correct
- 3 ✗ Incorrect — tenure increased to 10 years, not 15.
