TGPSC Daily Current Affairs 23th March 2026
Relevance: TGPSC Paper – IV: Economy and Development
For Prelims:
- Oil Palm Cultivation, Edible Oil Import Dependence, Oil Extraction Ratio, Integrated Oil Palm Processing, Indian Institute of Oil Palm Research (IIPR), Captive Power Plant, Biogas Unit, Agro-Processing Infrastructure, Rythu Mahotsavams
For Mains:
- Agricultural Diversification, Edible Oil Self-Sufficiency, Value Chain Development in Agriculture, Agro-Industrialisation, Farmer Income Enhancement, Import Substitution Strategy, Sustainable Agriculture and Resource Use
Why in News?
The Telangana Chief Minister A. Revanth Reddy is set to inaugurate a major oil palm processing factory at Narmetta (Siddipet district). The project assumes significance in the context of India’s heavy dependence on edible oil imports and the push for self-reliance in oilseed production.
Inauguration and Key Events
- Inaugurate the oil palm factory
- Lay the foundation stone for Telangana’s first integrated oil refinery
Extensive administrative arrangements have been made including security, infrastructure, and emergency services, indicating the project’s importance.
Background and Policy Context
- Project conceptualised during the BRS government
- Foundation laid in April 2022
- Supported by Indian Institute of Oil Palm Research (IIPR) approval
- Investment:
- ₹300 crore (factory)
- ₹40 crore (refinery)
Policy Linkages
- Aligns with:
- National Mission on Edible Oils – Oil Palm (NMEO-OP)
- Atmanirbhar Bharat initiative
Focus on reducing import dependence on edible oils
Oil Palm
1. Origin & Yield
- Native to tropical rainforests of West Africa
- High-yield crop; highest vegetable oil per hectare
- Oil yield ≈ 5 times higher than traditional oilseeds
2. Types of Oil
- Palm Oil: From mesocarp (45–55% oil content)
- Palm Kernel Oil: From kernel (rich in lauric oil)
3. Cultivation in India
- Major States: Andhra Pradesh, Telangana, Kerala (~98% production)
- Other States: Karnataka, Tamil Nadu, Odisha, Gujarat, Mizoram, Arunachal Pradesh, Assam, Manipur, Nagaland
4. Potential
- Total potential area: ~28 lakh hectares
- Area under cultivation: ~3.7 lakh hectares
5. Imports
- India = world’s largest palm oil importer
- Imports (2023–24): ~9.2 million tonnes
- ~60% of edible oil imports = palm oil
- Major sources: Indonesia, Malaysia, Thailand
Rythu Mahotsavams and Extension Services
- Conducted prior to inauguration
- Participation from farmers across districts
Key Features:
- 150+ stalls showcasing:
- Agricultural mechanisation
- Oil palm practices
- Allied sectors (dairy, fisheries, horticulture)
- Scientists provided:
- Technical guidance
- Awareness on modern farming techniques
Strengthens agricultural extension ecosystem
Environmental and Sustainability Concerns
- Oil palm is water-intensive crop
- Risk of:
- Over-extraction of groundwater
- Monoculture expansion
Requires region-specific planning and sustainability safeguards
Challenges in Oil Palm Expansion
- Long gestation period (3–4 years)
- Price volatility in global edible oil markets
- Limited awareness among farmers
- Ecological concerns (land use changes)
- Need for strong processing infrastructure linkage
Way Forward
- Promote sustainable oil palm cultivation practices
- Integrate with:
- Micro-irrigation systems
- Climate-resilient agriculture
- Strengthen:
- Farmer training
- Institutional support (FPOs)
- Ensure environmental safeguards in expansion
- Improve market linkages and price stability mechanisms
Conclusion
The Narmetta oil palm factory marks a significant step in strengthening India’s edible oil ecosystem through value addition, infrastructure development, and farmer-centric growth. By integrating processing, refining, and marketing, the project enhances efficiency and income opportunities.
However, long-term success will depend on ensuring sustainability, resource management, and balanced agricultural diversification, making it a crucial component of India’s journey towards self-reliance in edible oils.
UPSC PYQ
Q. With reference to ‘palm oil’, consider the following statements: (UPSC Prelims 2021)
- The palm oil tree is native to Southeast Asia.
- The palm oil is a raw material for some industries producing lipstick and perfumes.
- The palm oil can be used to produce biodiesel.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: B
Explanation:
Statement 1: Incorrect
- Oil palm is native to West Africa, not Southeast Asia.
- Southeast Asia (Indonesia, Malaysia) are major producers due to later cultivation expansion.
Statement 2: Correct
- Palm oil is widely used in cosmetics and personal care products like lipsticks, soaps, and perfumes due to its stability and texture-enhancing properties.
Statement 3: Correct
- Palm oil is used as a feedstock for biodiesel production, making it important in biofuel industries.
Additional Info
- India is the largest importer of palm oil.
- Palm oil contributes ~60% of India’s edible oil imports.
- It is the highest oil-yielding crop per hectare.
CARE MCQ
Q. Recently, the Chief Minister of Telangana inaugurated an oil palm factory at Narmetta. Narmetta is located in which of the following districts?
A. Warangal
B. Siddipet
C. Nizamabad
D. Karimnagar
Answer: B
Explanation:
The oil palm factory was inaugurated at Narmetta in Nangunur mandal of Siddipet district in Telangana. The initiative is aimed at promoting oil palm cultivation and agro-based industries in the region.
The event also included Rythu Mahotsavams, where farmers were educated about modern agricultural practices, mechanisation and allied sectors such as horticulture, dairy and fisheries. This reflects the state’s focus on improving agricultural productivity and value addition.
GS III – Agriculture, Irrigation, Food Security, Environment
For Prelims:
- Agricultural Water Management (AWM), Water-Food Nexus Framework, Water Stress, Rainfed Agriculture, Irrigation Expansion, Groundwater Depletion, Food Security
For Mains:
- Sustainable Agriculture, Water Resource Management, Climate Change and Food Security, Poverty Reduction, Resource Efficiency, Global Food Systems
Why in News?
A recent report by the World Bank, released ahead of World Water Day 2026, has proposed a “Water-Food Nexus Framework” to address the growing challenge of feeding a global population expected to reach nearly 10 billion by 2050. The report highlights that existing agricultural water management systems are insufficient to meet future food demand and calls for a fundamental transformation in how water resources are managed in agriculture.
The Emerging Global Water–Food Crisis
- Current agricultural systems can sustainably feed only about 3.4 billion people, which is less than half of the world’s population.
- This shows that the water–food crisis is a present and structural issue, not a future concern.
Core Issue
- The crisis is mainly due to inefficient, unequal, and unsustainable use of water, rather than just water scarcity.
Uneven Use of Water Resources
- Underutilisation:
- Seen in regions like Sub-Saharan Africa.
- Leads to low agricultural productivity and slow economic development.
- Overexploitation:
- Seen in regions like South Asia.
- Causes:
- Groundwater depletion
- Ecosystem degradation
- Long-term sustainability risks
Overall Implication
- Both underuse and overuse of water create serious challenges for global food security and sustainable development. Top of Form
Climate Change and Intensifying Risks
- Climate change is worsening existing weaknesses in water and food systems.
Increasing Climate Extremes
- Rising frequency and intensity of:
- Droughts
- Floods
- These events:
- Disrupt agricultural production
- Damage crops
- Affect rural livelihoods
Economic Impact
- Climate-related disasters are increasing:
- Public expenditure on disaster management
- Spending on emergency relief measures
Future Projections
- By 2050, climate change may:
- Reduce global food production by 6–14%
- Push up to 1.36 billion people into severe food insecurity
Key Implication
- The challenge is not only resource management, but also:
- Developing climate-resilient agricultural systems
- Ensuring long-term food security under changing climate conditions Top of Form
Bottom of Form
Bottom of Form
Need for a Fundamental Shift in Water Management
The report makes it clear that incremental improvements will not suffice. The challenge is not about using more or less water, but about using water more efficiently, at the right time, at the right place, and for the right purpose.
Past investments in irrigation and water systems did deliver gains, but changing climatic and economic conditions now demand systems that are:
- Adaptive and resilient
- Supported by strong institutions
- Based on reliable data and governance mechanisms
This calls for a systemic transformation in agricultural water management rather than piecemeal reforms.
Water–Food Nexus Framework: Concept and Approach
To address these challenges, the World Bank proposes a Water-Food Nexus Framework, which integrates water availability with food production and trade dynamics.
The framework is based on two key dimensions:
- The level of water availability or stress in a country
- Its position in global food trade (whether it is a net importer or exporter of food)
By combining these two factors, the framework moves away from uniform policy prescriptions and instead promotes context-specific strategies tailored to national conditions.
Classification of Countries
Under this framework, countries are classified into four categories:
- Water-secure food importer
- Water-secure food exporter
- Water-stressed food exporter
- Water-stressed food importer
This classification helps policymakers understand the structural constraints faced by each country and design appropriate strategies accordingly.
Policy Implications of the Framework
The framework provides a practical roadmap for improving agricultural water management. It helps identify:
- Regions where rainfed agriculture can be strengthened
- Areas where irrigation expansion can boost productivity and employment
- Situations where water use needs to be reduced to protect ecosystems
- Contexts where food trade can be used as a tool for food security
Importantly, the framework is based on extensive analysis using geospatial data and household surveys across 58 countries, making it a data-driven policy tool.
Economic and Social Gains
The report highlights that improving water management can yield significant economic and social benefits. A 10% increase in agricultural productivity can reduce poverty levels by 2.5–3%, indicating a strong linkage between water efficiency and socio-economic development.
Furthermore, expanding irrigation in suitable rainfed regions has the potential to generate around 245 million jobs globally, including about 218 million jobs in Sub-Saharan Africa. This translates to nearly four jobs per hectare of newly irrigated land, demonstrating the employment potential of improved water management systems.
India’s Position: A Water-Stressed Food Exporter
India has been classified as a water-stressed food exporter, which presents a unique set of challenges. While the country plays an important role in global food supply, it does so under conditions of increasing water stress.
A major concern is the over-extraction of groundwater, particularly in regions such as Punjab, Haryana, Delhi, and western Uttar Pradesh. This is largely driven by the widespread cultivation of water-intensive crops like paddy, which puts additional pressure on already stressed water resources.
To ensure long-term sustainability, India will need to:
- Transition towards less water-intensive cropping patterns
- Invest in modern and efficient irrigation systems
- Balance farm incomes with environmental sustainability
Financing Challenges in Agricultural Water Management
A major constraint identified in the report is inadequate investment in irrigation and water management.
Globally, feeding the population by 2050 will require investments ranging between $600 billion and $1.8 trillion. However, current spending patterns are highly skewed. Out of $663 billion spent on agriculture in 2023, only $27 billion was allocated to irrigation.
Much of the existing expenditure is directed towards subsidies, which often promote inefficient resource use rather than sustainable practices.
The report suggests that redirecting even a small portion of these funds towards efficient water management could significantly improve food security outcomes. It also emphasises the need for greater private sector participation to enhance innovation, efficiency, and investment.
Lessons from Global Case Studies
The report draws on experiences from countries such as Mali, Senegal, Uganda, France, Peru, India, and Morocco. These case studies demonstrate that with appropriate policies, institutional frameworks, and investments, agricultural water systems can be transformed to support both economic development and environmental sustainability.
Future Risks and Urgency of Action
With food demand expected to rise sharply and climate pressures intensifying, the report warns that incremental improvements in water use will not be sufficient. Without systemic reforms, the gap between food demand and supply will widen, leading to increased food insecurity and environmental degradation.
Way Forward
The report calls for adopting a comprehensive water-food nexus approach, which involves:
- Improving efficiency in water use
- Expanding sustainable irrigation
- Strengthening institutional and governance frameworks
- Promoting region-specific agricultural strategies
- Encouraging private sector participation and innovation
Conclusion
The World Bank’s Water-Food Nexus Framework highlights that the global food security challenge is deeply intertwined with how water resources are managed. The issue is not merely one of scarcity but of inefficiency and mismanagement.
Addressing this challenge requires a fundamental transformation in agricultural water systems, supported by better policies, investments, and governance. Only through such an integrated approach can the world sustainably feed its growing population while preserving ecological balance.
UPSC PYQ
Q. Which of the following is/are the advantage/advantages of practising drip irrigation? (IAS 2016)
- Reduction in weed
- Reduction in soil salinity
- Reduction in soil erosion
Select the correct answer using the code given below:
- 1 and 2 only
- 3 only
- 1 and 3 only
- None of the above
Answer: C
Explanation:
Statement 1: Reduction in weed — Correct
- Drip irrigation supplies water directly to the root zone of plants.
- Areas between plants remain dry, which prevents weed growth.
- Hence, weed infestation is reduced.
Statement 2: Reduction in soil salinity — Incorrect
- Drip irrigation does not automatically reduce soil salinity.
- Since water is applied only near roots, salts may accumulate in surrounding dry areas.
- Proper leaching is required; otherwise, salinity can increase locally.
Statement 3: Reduction in soil erosion — Correct
- Water is applied slowly and in controlled amounts.
- This prevents runoff and reduces soil erosion, unlike flood irrigation.
CARE MCQ
Q. Consider the following statements:
- Groundwater depletion in India is particularly severe in northwest regions such as Punjab, Haryana, Delhi and western Uttar Pradesh.
- Paddy cultivation requires less water than pulses and oilseeds, thereby helping conserve groundwater.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: A
Explanation
- Statement 1 is correct: Over-extraction of groundwater is highest in northwest India, including Punjab, Haryana, Delhi and western Uttar Pradesh.
- Statement 2 is incorrect: Paddy is a water-intensive crop, consuming much more water than pulses and oilseeds, thus worsening groundwater depletion.
Additional Information
- Paddy requires more than 10 times the water needed for pulses and oilseeds.
- Excessive groundwater extraction leads to falling water tables, soil degradation, and long-term sustainability issues.
- The Central Ground Water Board (CGWB) monitors groundwater status in India.
Relevance: UPSC – GS Paper III (Infrastructure, Economy, Investment Models)
For Prelims:
- Public Capital Expenditure, InvITs, REITs, NIIF, NaBFID, Infrastructure Risk Guarantee Fund, Municipal Bonds, GIFT City, ESG Bonds
For Mains:
- Infrastructure Financing, Asset Monetisation, Public-Private Partnership (PPP), Green Finance, Urban Infrastructure, Credit Enhancement, Risk Mitigation
Why in News?
India’s infrastructure development approach has undergone a significant transformation, moving away from a predominantly government-funded model towards a more diversified system driven by public-private partnerships (PPP) and innovative financing mechanisms.
Background: Infrastructure Financing
Infrastructure financing refers to raising funds for the development of core sectors such as transport, energy, urban infrastructure, and digital systems.
Key Features
- Requires large-scale investment and long-term commitment
- Projects have long gestation periods (20–30 years)
- Requires a mixed financing model, including:
- Government expenditure
- Private investment
- Institutional finance
Efficient financing ensures timely completion of projects, reduces fiscal burden, and supports sustained economic growth.
Key Highlights of Infrastructure Financing in India
Rising Public Capital Expenditure
- Increased from ₹2 lakh crore (2014–15) to ₹12.2 lakh crore (2026–27)
- Reflects government’s commitment to infrastructure as a growth driver
Importance of Higher Capex
- Crowding-in effect: Large public spending builds investor confidence and attracts private investment
- Employment generation: Infrastructure projects create jobs in construction, logistics, and allied sectors
- Economic multiplier effect: Increases demand for steel, cement, and machinery, boosting industrial growth
Institutional Support
National Investment and Infrastructure Fund (NIIF):
- Mobilises global and domestic capital
- Invests in sectors like transport, energy, and digital infrastructure
- Acts as a bridge between India and global investors
National Bank for Financing Infrastructure and Development (NaBFID):
- Provides long-term financing solutions
- Supports PPP projects and infrastructure pipelines
- Promotes ESG-based financing
Indian Railway Finance Corporation (IRFC):
- Raises funds from markets for railway infrastructure
- Reduces burden on government budget through leasing model
These institutions strengthen the financial ecosystem and reduce dependence on traditional bank lending.
Financial Innovations
Infrastructure Investment Trusts (InvITs):
- Allow monetisation of completed infrastructure assets
- Provide stable returns to investors
- Help recycle capital into new projects
Real Estate Investment Trusts (REITs):
- Enable small investors to participate in real estate markets
- Provide liquidity, transparency, and diversification
Infrastructure Risk Guarantee Fund:
- Provides partial guarantees to lenders
- Reduces project risks, especially during early stages
- Encourages greater private participation
Challenges in Infrastructure Financing
1. Public Fund Dependence
- India requires around USD 2.2 trillion investment for infrastructure expansion
- Private sector participation remains limited
- Institutional investors (insurance, pension funds) allocate only ~6% to infrastructure
Implication:
- High burden on government finances
- Slower pace of infrastructure development
2. Land Acquisition Bottlenecks
- Responsible for nearly 35% of project delays
- Key issues include:
- High compensation costs (up to 4 times market value)
- Legal disputes and unclear land titles
Implication:
- Delays increase project costs
- Reduces investor confidence
3. Asset-Liability Mismatch in Banking
- Banks mobilise short-term deposits
- Infrastructure projects require long-term loans (20–30 years)
Implication:
- Limits banks’ ability to finance large projects
- Increases financial risk in the banking system
4. Preference for Low-Risk (Brownfield) Projects
- Investors prefer operational projects with stable returns
- Avoid high-risk greenfield projects
Implication:
- Slows development of new infrastructure
- Reduces innovation and expansion capacity
5. Weak Municipal Bond Market
- Urban Local Bodies lack:
- Strong financial management systems
- Creditworthiness and transparency
Implication:
- Cities depend heavily on government grants
- Limited independent urban financing
6. Weak Project Preparation and Bankability
- Inadequate feasibility studies
- Poor risk allocation
- Unrealistic revenue projections
Implication:
- Leads to cost overruns and delays
- Discourages lenders and investors
Steps for Sustainable Infrastructure Financing
1. Expansion of Asset Monetisation
- Use National Monetisation Pipeline (NMP)
- Lease operational assets to private sector
- Reinvest funds into new projects
Outcome:
- Creates a continuous investment cycle
2. Institutional De-risking
- Use Partial Credit Enhancement (PCE) to improve credit ratings
- Operationalise Infrastructure Risk Guarantee Fund
Outcome:
- Reduces risk for investors
- Attracts long-term institutional capital
3. Promotion of Green and Integrated Finance
- Expand use of:
- Green bonds
- Blue bonds
- Finance sustainable infrastructure like renewable energy and water systems
Outcome:
- Supports climate goals and sustainable development
4. Blended Finance Approach
- Combine public funds with private investment
- Government acts as a risk absorber
Outcome:
- Encourages investment in socially important sectors like rural water supply
5. Reform-Linked Urban Financing
- Implement Challenge Mode funding for CERs
- Encourage reforms such as:
- Property tax improvement
- Digital governance
Outcome:
- Strengthens financial autonomy of cities
6. Expansion of InvITs and REITs
- Extend to new sectors like:
- Warehousing
- Data centres
- Urban transport
Outcome:
- Attracts domestic savings and global investors
7. Leveraging GIFT City
- Develop as a global financial hub
- Provide tax-efficient investment environment
Outcome:
- Attracts foreign direct investment into infrastructure
Significance
- Promotes high economic growth
- Generates large-scale employment
- Enhances connectivity and quality of life
- Attracts global capital flows
- Supports balanced regional and urban development
Conclusion
India’s infrastructure financing system is gradually shifting towards a diversified and market-oriented model. While strong progress has been made through higher public investment, institutional support, and innovative financial instruments, structural challenges such as land acquisition delays, financing risks, and weak project preparation still remain.
A comprehensive approach that focuses on risk reduction, institutional strengthening, private sector participation, and sustainable financing will be essential to achieve long-term goals like Viksit Bharat and a $7 trillion economy.
UPSC PYQ
Q. In India, the term “Public Key Infrastructure” is used in the context of (2020)
A. Digital security infrastructure
B. Food security infrastructure
C. Health care and education infrastructure
D. Telecommunication and transportation infrastructure
Answer: A
CARE MCQ
Q. With reference to the Indian Railway Finance Corporation (IRFC), consider the following statements:
- IRFC was established in 1986 as the dedicated financing arm of Indian Railways.
- IRFC operates on a leasing model and finances assets leased back to Indian Railways.
- IRFC raises funds from domestic and international markets to meet Extra Budgetary Resource needs.
How many of the above statements are correct?
A. Only one
B. Only two
C. All three
D. None
Answer: C
Explanation:
Statement 1 – Correct:
The statement is correct. The Indian Railway Finance Corporation (IRFC) was established in 1986. It functions as the dedicated financing arm of Indian Railways and was created to support the large financial requirements of the railway sector. Since railway expansion and modernization require heavy investment, IRFC plays an important role in mobilising funds for this purpose.
Statement 2 – Correct:
The statement is correct. IRFC mainly follows a leasing model. It finances railway assets such as locomotives, coaches and wagons, and these assets are then leased back to Indian Railways. This method helps Indian Railways obtain essential rolling stock and infrastructure support without depending entirely on direct budgetary allocation at the initial stage.
Statement 3 – Correct:
The statement is correct. IRFC raises funds from both domestic and international markets. These funds are used to meet the Extra Budgetary Resource (EBR) needs of Indian Railways. In other words, IRFC helps Indian Railways mobilise financial resources beyond normal budgetary support, which is essential for sustaining large-scale infrastructure development.
Additional Information
• IRFC has financed 13,764 locomotives, 76,735 passenger coaches, and 2,65,815 wagons.
• Through this financing, it has covered nearly 75% of the rolling stock fleet of Indian Railways.
• Indian Railways is a key pillar of India’s infrastructure and plays a major role in connectivity, trade and economic growth.



