Latest News

A new study published in Science has produced the first global map of the Earth's vast underground network of Arbuscular Mycorrhizal Fungi (AMF), highlighting their crucial role in soil health, carbon storage, and ecosystem sustainability.

About Arbuscular Mycorrhizal Fungi (AMF)

Arbuscular Mycorrhizal Fungi (AMF) are soil-borne microorganisms belonging to the phylum Glomeromycota that form mutually beneficial (symbiotic) associations with the roots of nearly 80% of terrestrial vascular plants.

These fungi are root-obligate biotrophs, meaning they can survive only by obtaining nutrients from living plant roots. As one of the most important biological components of soil, their absence significantly reduces soil fertility, nutrient cycling, and overall ecosystem functioning.

Structure and Distribution

• AMF consist of microscopic, branching filaments known as hyphae, which spread extensively through the soil and create vast underground networks.

• These hyphal networks function as two-way transport channels, delivering water and essential nutrients such as phosphorus to plants while receiving carbon compounds produced through photosynthesis.

• Recent research shows that grassland ecosystems, including those in South Sudan, the Tibetan Plateau, and India’s Banni Grasslands (Gujarat), contain nearly 40% of the world's AM fungal networks.

• Collectively, these underground fungal networks store approximately 300 million tonnes of carbon, which is four to six times greater than the total weight of the global human population.

Ecological Importance

AMF act as natural biofertilizers by enhancing the absorption of water and essential nutrients, improving plant growth, and protecting roots against harmful pathogens. In return, plants supply the fungi with carbohydrates produced during photosynthesis, creating a highly efficient mutualistic relationship.

Beyond supporting agriculture, these fungi play a vital role in climate regulation by transferring atmospheric carbon into soils, thereby increasing soil carbon sequestration. Globally, AMF maintain symbiotic relationships with nearly 70% of plant species and are estimated to sequester around 4 billion tonnes of CO₂-equivalent annually, making them one of the most significant natural contributors to carbon storage and climate change mitigation.

Significance

The newly developed global AMF map provides valuable insights into the world's hidden underground ecosystems and emphasizes the importance of conserving healthy soils, grasslands, and biodiversity. Protecting AMF networks can enhance sustainable agriculture, strengthen food security, improve ecosystem resilience, and contribute significantly to achieving global climate goals.

Latest News

Kaziranga National Park and Tiger Reserve has released the first scientific assessment report on the Greater Hog Badger, providing valuable insights into the ecology, distribution, and conservation status of this elusive mammal.

About Greater Hog Badger

The Greater Hog Badger (Arctonyx collaris) is a nocturnal, ground-dwelling, burrowing omnivorous mammal belonging to the badger family. In Assam, it is popularly known as "Mati Gahori". Globally, the genus Arctonyx comprises three living species—the Greater Hog Badger, the Northern Hog Badger (Arctonyx albogularis), and the Sumatran Hog Badger (Arctonyx hoevenii). Of these, the Greater and Northern Hog Badgers are found in India.

Distribution and Habitat

The species is widely distributed across South, Central, and Southeast Asia, with its range extending from Bangladesh and northeastern India through Myanmar, Thailand, Laos, and Vietnam. It inhabits diverse ecosystems, including tropical evergreen forests, grasslands, savannas, shrublands, as well as hilly and mountainous regions, where suitable burrowing conditions are available.

Physical Features and Characteristics

The Greater Hog Badger is easily recognized by its elongated pig-like snout, which is specially adapted for digging in the soil. Its forward-pointing modified teeth help overturn soil while searching for food. It is a shy, solitary, and highly territorial animal that marks its territory using scent secretions on grass, rocks, and tree trunks.

It is an excellent burrower, constructing underground shelters and excavating soil to locate food. Its omnivorous diet includes earthworms, insects, small mammals, fruits, tubers, and roots, making it an important component of forest food webs.

Ecological Importance

The Greater Hog Badger plays a significant ecological role as a fossorial (burrowing) mammal. Its digging activities improve soil aeration, enhance nutrient recycling, and promote leaf litter decomposition. These processes create favourable conditions for seed germination and provide microhabitats for numerous invertebrates and small vertebrates, thereby supporting overall ecosystem health and biodiversity.

Conservation Status

The International Union for Conservation of Nature (IUCN) has classified the Greater Hog Badger as Vulnerable due to habitat loss, hunting, and other anthropogenic pressures. In India, it receives the highest level of legal protection under Schedule I of the Wildlife (Protection) Act, 1972, ensuring strict conservation measures for its survival.

Latest News

Arbitrage funds are attracting investor attention as they capitalize on pricing differences in futures contracts and cash markets, offering relatively low-risk returns during periods of market volatility.

About Arbitrage Funds

• Arbitrage Funds are equity-oriented hybrid mutual funds that generate returns by exploiting temporary price differences (arbitrage opportunities) in financial markets.

• Instead of relying on the long-term appreciation of stocks, these funds earn profits by simultaneously buying and selling the same security in different markets or segments where price discrepancies exist.

• The underlying principle of arbitrage is to capture the price spread between the purchase and sale of an asset with minimal market risk. Such opportunities may arise due to differences in prices between stock exchanges, or between the spot (cash) market and the futures market.

How Arbitrage Funds Work

• The fund manager simultaneously purchases shares in one market and sells them in another market where the price is slightly higher, thereby locking in a profit from the price difference. Since both transactions occur together, the exposure to market fluctuations remains very low.

• If suitable arbitrage opportunities are unavailable, the fund temporarily invests in short-term money market instruments and debt securities to maintain stability and generate modest returns. Because the price differences are usually very small, fund managers execute multiple trades every day to earn meaningful returns.

• Under the Securities and Exchange Board of India (SEBI) regulations, arbitrage funds are classified as hybrid mutual funds, and at least 65% of their assets must be invested in equities and equity-related instruments, enabling them to receive equity taxation benefits.

Benefits of Arbitrage Funds

• Arbitrage funds are considered low-risk investment options because the buying and selling positions are fully hedged, reducing exposure to market volatility.

• They offer the potential for equity-like tax-efficient returns while maintaining relatively stable performance.

• These funds also provide high liquidity, allowing investors to redeem their investments easily. Their diversified allocation across equities, debt instruments, and money market securities further reduces investment risk.

• Additionally, gains from investments held for more than one year are treated as Long-Term Capital Gains (LTCG) under the applicable tax provisions for equity-oriented funds.

Limitations of Arbitrage Funds

The performance of arbitrage funds depends heavily on the availability of market price inefficiencies. During periods of low market volatility, arbitrage opportunities decline, leading to relatively lower returns.

Moreover, since these funds are designed to exploit short-term pricing differences, they are generally not suitable for long-term wealth creation and may underperform equity funds during prolonged bull markets.

Significance

Arbitrage funds serve as an attractive investment option for risk-averse investors seeking stable, tax-efficient returns with limited exposure to market fluctuations. They are particularly useful during volatile market conditions, where pricing mismatches occur more frequently, allowing fund managers to generate consistent returns through arbitrage strategies.

Latest News

Armenia's ruling Civil Contract Party has recently won the parliamentary election, reaffirming its political mandate amid continuing regional and geopolitical challenges.

About Armenia

Armenia is a landlocked country located in the South Caucasus, at the crossroads of Eastern Europe and Western Asia. Owing to its strategic location between Europe and Asia, Armenia has historically been an important centre for trade, culture, and regional geopolitics.

Its capital and largest city is Yerevan, one of the world's oldest continuously inhabited cities.

Location and Boundaries

Armenia is bordered by Georgia to the north, Azerbaijan to the east, Iran to the southeast, and Turkey to the west. Being landlocked, it has no direct access to the sea, making regional connectivity and cross-border relations particularly important.

Physical Geography

• Armenia experiences a highland continental climate, characterised by hot summers and cold, snowy winters. The country's landscape is dominated by the Lesser (Little) Caucasus Mountains, resulting in rugged terrain and high elevations.

• Its soils, formed largely from volcanic lava deposits, are naturally rich in nitrogen, potash, and phosphates, making them relatively fertile for agriculture.

• The country's highest peak is Mount Aragats (4,090 metres), an extinct volcanic mountain and the highest point in Armenia.

Rivers and Lakes

Several important rivers, including the Aras, Hrazdan, Arpa, and Vorotan, provide essential hydropower generation, irrigation, and freshwater resources.

Lake Sevan, the largest lake in Armenia and one of the world's largest high-altitude freshwater lakes, is a vital source of drinking water, fisheries, hydropower, and tourism.

Natural Resources

Although Armenia has limited mineral reserves, it possesses economically significant deposits of gold, copper, molybdenum, zinc, and bauxite. Mining remains an important contributor to the country's economy.

Importance

Armenia occupies a strategically significant position in the South Caucasus, connecting Europe, West Asia, and the Black Sea-Caspian region. Its mountainous terrain, rich cultural heritage, and geopolitical location make it an important country in regional security, energy transit, and international diplomacy.

Latest News

The Mukundra Hills Tiger Reserve (MHTR) administration in Kota, Rajasthan, recently launched the poster and trailer of the documentary "Enchanting Mukundra" to promote wildlife conservation, ecotourism, and awareness about the reserve's rich biodiversity.

About Mukundra Hills Tiger Reserve

• Mukundra Hills Tiger Reserve (MHTR), formerly known as the Darrah Wildlife Sanctuary, is located across the four districts of Bundi, Kota, Jhalawar, and Chittorgarh in Rajasthan.

• The reserve lies within a scenic valley formed by the parallel Mukundra and Gargola mountain ranges, making it one of the state's important protected landscapes.

• The reserve comprises Mukundra National Park, Darrah Wildlife Sanctuary, Jawahar Sagar Wildlife Sanctuary, and a part of the National Chambal Sanctuary extending from Garadia Mahadev to Jawahar Sagar Dam, which together form its core (critical) tiger habitat.

• Historically, the area served as the royal hunting reserve of the Maharaja of Kota before being transformed into a protected wildlife area.

Geographical Features

The reserve is situated along the eastern bank of the Chambal River and is drained by several of its tributaries. Its strategic location between Ranthambore Tiger Reserve (Rajasthan) and Kuno National Park (Madhya Pradesh) makes it an important wildlife corridor, facilitating the movement and genetic exchange of tigers between these protected areas.

Vegetation

Mukundra Hills Tiger Reserve is characterized by Tropical Dry Deciduous Forests. The vegetation is dominated by Kala Dhok (Kaladhi), accompanied by species such as Khair, Ber, Kakan, and Raunj, which provide suitable habitat and food for a wide variety of wildlife.

Faunal Diversity

The reserve supports diverse wildlife, including Leopard, Sloth Bear, Nilgai, Chinkara, Spotted Deer, Small Indian Civet, Toddy Cat (Palm Civet), Jackal, Striped Hyena, Jungle Cat, and Common Langur.

Its riverine ecosystem also sustains several reptiles and aquatic species, including Python, Rat Snake, Buff-striped Keelback, Green Keelback, Mugger Crocodile, Gharial, Otter, and various species of freshwater turtles, highlighting the ecological importance of the Chambal River.

Significance

Mukundra Hills Tiger Reserve is a crucial component of Rajasthan's tiger conservation landscape. Its role as a corridor linking Ranthambore and Kuno, combined with its rich biodiversity and unique riverine ecosystem, makes it vital for tiger conservation, wildlife connectivity, ecological balance, and the promotion of sustainable ecotourism in central India.

India is increasingly integrating Artificial Intelligence (AI) with its Digital Public Infrastructure (DPI) to strengthen governance, improve public service delivery, enhance Jan Vishwas (trust-based governance), and build greater state capacity for inclusive and sustainable development.

Introduction

India has developed one of the world's largest Digital Public Infrastructure (DPI) ecosystems through platforms such as Aadhaar, UPI, DigiLocker, FASTag, GSTN, CoWIN, Ayushman Bharat Digital Mission (ABDM), and Direct Benefit Transfer (DBT).

These platforms have transformed governance by creating robust systems for digital identity, payments, authentication, and data exchange.

However, the next phase of governance requires these platforms to become intelligent, predictive, interoperable, and citizen-centric. Integrating Artificial Intelligence (AI) with DPI can enable governments to analyse vast datasets in real time, automate decision-making, detect fraud, improve policy formulation, and deliver personalised public services.

Why India Needs AI in Digital Public Infrastructure

Managing Population-Scale Digital Data

India generates enormous volumes of digital data through platforms such as UPI, GSTN, Aadhaar authentication, FASTag, and DBT. AI enables governments to process this information rapidly, identify patterns, and generate actionable insights for better governance.

Strengthening State Capacity

AI can automate routine administrative processes, reduce bureaucratic delays, improve decision-making, and ensure faster implementation of government programmes. This enhances the overall efficiency of public administration.

Improving Public Service Delivery

AI-powered multilingual chatbots and virtual assistants can simplify interactions between citizens and government departments. This helps bridge language barriers, improves accessibility, and promotes digital inclusion, especially among rural and less digitally literate populations.

Enhancing Fraud Detection

AI systems can identify duplicate beneficiaries, detect financial irregularities, and minimise welfare leakages. Such capabilities improve transparency and prevent misuse of public funds, ensuring benefits reach genuine beneficiaries.

Supporting Evidence-Based Policymaking

AI can analyse structured and unstructured government data to provide valuable insights for targeted welfare schemes, efficient public expenditure, infrastructure planning, and better resource allocation.

Advantages of Integrating AI with DPI

Strengthening Governance and Public Administration

AI enables predictive governance by analysing real-time information and identifying emerging challenges before they escalate. It also supports faster grievance redressal, continuous monitoring of government schemes, and transparent decision-making, thereby reinforcing the principles of Jan Vishwas.

Efficient Welfare Delivery

AI significantly improves the effectiveness of Direct Benefit Transfer (DBT) by identifying fake or duplicate beneficiaries and reducing fiscal leakages. Consequently, welfare benefits can be delivered more accurately and efficiently.

Improving Citizen Services

AI-driven multilingual interfaces make government services easier to access regardless of language or educational background. This contributes to greater digital inclusion and improves the overall citizen experience.

Promoting Economic Formalisation

When integrated with GST, UPI, and Enterprise DPI, AI facilitates credit assessment, enhances worker-job matching, improves supply chain efficiency, and accelerates the formalisation of Micro, Small and Medium Enterprises (MSMEs).

Boosting the Digital Economy

India accounts for nearly 42% of the world's digital payment transactions through UPI. AI can further strengthen payment systems by improving transaction security, analysing consumer behaviour, and enhancing financial inclusion.

Transforming Healthcare and Education

AI can analyse anonymised health and education datasets to improve disease surveillance, optimise healthcare resource allocation, support personalised learning, and enhance educational outcomes.

Data-Driven Policymaking

Real-time AI analytics enable governments to improve urban planning, disaster management, agricultural advisory services, and infrastructure development by supporting informed and evidence-based policy decisions.

Government Initiatives Supporting AI-Driven DPI

IndiaAI Mission

The IndiaAI Mission seeks to build India's AI ecosystem by developing computing infrastructure, promoting innovation, creating quality datasets, and developing skilled human resources.

Digital India Programme

The Digital India Programme aims to expand digital governance, improve public service delivery, and increase digital inclusion across the country.

Aadhaar-Enabled Direct Benefit Transfer (DBT)

The integration of Aadhaar with DBT has significantly reduced leakages and improved the efficiency of welfare delivery.

Unified Payments Interface (UPI)

UPI has become the world's largest real-time digital payment system and serves as a key pillar of India's digital economy.

DigiLocker

DigiLocker enables secure digital storage, authentication, and verification of official documents, reducing paperwork and improving administrative efficiency.

Open Network for Digital Commerce (ONDC)

ONDC promotes an open and interoperable digital commerce ecosystem by reducing platform monopolies and expanding market access.

Ayushman Bharat Digital Mission (ABDM)

The ABDM facilitates interoperable digital health records, improving healthcare accessibility and continuity of care.

National Data Governance Framework Policy (Proposed)

The proposed policy seeks to facilitate responsible access to anonymised public datasets for research, innovation, and evidence-based policymaking while ensuring privacy safeguards.

Jan Vishwas (Amendment of Provisions) Act, 2023

The Act promotes trust-based governance, reduces unnecessary compliance burdens, and improves the ease of living and doing business.

Enterprise Digital Public Infrastructure

Initiatives such as the Universal Enterprise Number, Entity DigiLocker, API Setu, and Single Source of Truth for Regulation aim to simplify regulatory compliance and support business formalisation.

Challenges in Integrating AI with DPI

Data Privacy and Security

The widespread use of AI requires robust safeguards for personal data protection, informed consent, and secure data storage to maintain citizens' trust.

Algorithmic Bias

AI systems may produce biased outcomes if trained on incomplete or unrepresentative datasets. Ensuring fairness and accountability remains essential.

Digital Divide

Unequal access to digital infrastructure and limited digital literacy may prevent certain sections of society from benefiting fully from AI-enabled public services.

Dependence on Foreign Technologies

Heavy reliance on imported AI technologies and computing infrastructure could affect India's technological sovereignty and strategic autonomy.

Institutional Capacity

Government departments require specialised AI expertise, skilled personnel, and institutional mechanisms for effective implementation and governance of AI systems.

Way Forward

Develop AI-Ready Digital Infrastructure

India should build secure, interoperable, API-based digital ecosystems instead of isolated digital platforms to enable seamless AI integration.

Strengthen Privacy and Data Protection

Implementation of the Digital Personal Data Protection framework should ensure privacy-by-design, informed consent, and responsible data governance.

Promote Indigenous AI Ecosystems

Greater investment should be made in Indian AI models, research institutions, open datasets, and domestic innovation to reduce technological dependence.

Expand Multilingual AI Solutions

Developing AI applications in multiple Indian languages will improve accessibility and narrow the digital divide.

Significance for India

The convergence of Artificial Intelligence and Digital Public Infrastructure has the potential to transform India from a digitally connected nation into an intelligent, citizen-centric state. It can strengthen governance, reduce welfare leakages, improve administrative efficiency, enhance public trust, and accelerate inclusive economic growth.

By combining AI, Digital Public Infrastructure, robust data governance, privacy safeguards, and institutional reforms, India can build a governance model that is transparent, efficient, resilient, and capable of supporting its long-term development aspirations.

Conclusion

As Kautilya's Arthashastra emphasised the importance of combining strength, strategy, and timing for effective governance, India today possesses a strong foundation in the form of its world-class Digital Public Infrastructure. Integrating Artificial Intelligence into this ecosystem represents the next stage of governance reform. With appropriate safeguards for privacy, ethical AI, data governance, and institutional capacity, AI-enabled DPI can significantly enhance state capability, improve public service delivery, strengthen Jan Vishwas, and support India's transition towards a more inclusive, intelligent, and globally competitive digital economy

Latest Context

The Insolvency and Bankruptcy Code (IBC) (Amendment), 2026 has introduced the Creditor-Initiated Insolvency Resolution Process (CIIRP) as a new insolvency mechanism aimed at enabling faster corporate restructuring, reducing value destruction, and improving the efficiency of insolvency resolution. However, the amendment has also generated debate regarding its constitutional validity, fairness among creditors, and its impact on India's insolvency ecosystem.

Introduction

• Since its enactment in 2016, the Insolvency and Bankruptcy Code (IBC) has transformed India's insolvency framework by replacing fragmented laws with a unified, time-bound resolution process.

• Nevertheless, the IBC has consistently struggled to balance two competing objectives—providing financially distressed companies an opportunity to recover while simultaneously protecting the legitimate interests of their creditors.

• This dilemma is often described as the "Chakravyuha Challenge," inspired by the Mahabharata, where entering a complex formation is relatively easy but escaping it is extremely difficult.

• Similarly, while companies can easily enter insolvency proceedings under the IBC, successfully exiting through timely resolution has remained a major challenge due to prolonged litigation, procedural delays, and declining asset values.

• The introduction of CIIRP seeks to address these shortcomings by creating a faster and less disruptive insolvency mechanism.

Evolution of India's Insolvency Framework

The Sick Industrial Companies Act (SICA): Debtor-in-Possession Model

Before the enactment of the IBC, insolvency was governed primarily by the Sick Industrial Companies Act (SICA), which followed a debtor-in-possession model. Under this approach, the existing promoters and management continued to control the company during insolvency proceedings.

Although this system intended to facilitate business revival, it was frequently misused. Promoters often delayed resolution, prolonged litigation, and protected their own interests while creditors suffered mounting losses. Consequently, recovery rates remained poor and distressed companies continued to lose value.

The Insolvency and Bankruptcy Code (IBC): Creditor-in-Control Model

To overcome the weaknesses of SICA, the IBC introduced a creditor-in-control framework. Once a company defaulted, the management was replaced by an Insolvency Resolution Professional (IRP), while major decisions were taken by the Committee of Creditors (CoC).

The objective was to ensure time-bound resolution, maximise asset value, improve credit discipline, and strengthen investor confidence. However, despite these reforms, practical implementation has often been affected by judicial delays, appeals, and procedural complexities, causing resolution timelines to extend far beyond the statutory limits.

What is the Creditor-Initiated Insolvency Resolution Process (CIIRP)?

Meaning of CIIRP

The Creditor-Initiated Insolvency Resolution Process (CIIRP) is a newly introduced hybrid insolvency mechanism under the IBC Amendment, 2026, incorporated through Sections 54C to 54P.

Unlike the traditional Corporate Insolvency Resolution Process (CIRP), the existing management continues to operate the company during CIIRP under the supervision of a Resolution Professional.

Objective of CIIRP

The primary objective of CIIRP is to facilitate quick corporate restructuring without disrupting normal business operations. By avoiding unnecessary liquidation, it seeks to preserve enterprise value, protect employment, maximise recoveries for creditors, and maintain confidence in the insolvency framework.

Why Was CIIRP Introduced?

Reducing Value Destruction

Traditional insolvency proceedings frequently result in significant destruction of economic value because companies lose customers, employees, suppliers, and investor confidence during prolonged litigation. CIIRP seeks to minimise these losses by allowing businesses to continue functioning throughout the restructuring process.

Addressing Delays under CIRP

Although the IBC prescribes strict timelines, many cases remain pending for years before the National Company Law Tribunal (NCLT). CIIRP aims to provide a quicker alternative that reduces procedural delays and facilitates faster restructuring.

Response to the Vidarbha Industries Judgment

The introduction of CIIRP also responds to the Supreme Court's judgment in the Vidarbha Industries case.

Earlier, Section 7(5)(a) of the IBC used the word "may," giving the NCLT discretionary authority to admit or reject insolvency applications even after debt and default had been established.

The 2026 Amendment replaces the word "may" with "shall." As a result, once the existence of debt and default is verified through official records, the NCLT is now legally obligated to admit the application. This change significantly reduces judicial discretion and accelerates insolvency proceedings.

Major Features of CIIRP

Hybrid Insolvency Model

CIIRP combines elements of both debtor control and creditor supervision. The company's management continues day-to-day operations while remaining under the oversight of an independent Resolution Professional.

Business Continuity

Unlike conventional insolvency proceedings where management is displaced immediately, CIIRP enables companies to continue functioning during restructuring, thereby preserving operational efficiency and enterprise value.

Faster Resolution

The mechanism seeks to reduce delays, minimise litigation, and facilitate quicker restructuring without forcing financially viable companies into liquidation.

Constitutional and Practical Concerns

Restricted Access to CIIRP

The most controversial aspect of the amendment is that only "notified financial institutions" are permitted to initiate CIIRP.

This creates a new classification even among financial creditors, limiting access for many other legitimate creditors.

Article 14 and Equality Before Law

The restriction raises concerns under Article 14 of the Constitution, which guarantees equality before law.

In the Swiss Ribbons case, the Supreme Court upheld the distinction between financial creditors and operational creditors because both groups possess fundamentally different commercial interests and responsibilities.

However, the new distinction between "notified financial institutions" and other financial creditors appears less convincing.

The government argues that notified institutions possess superior expertise in restructuring distressed companies. However, modern financial markets include numerous sophisticated participants such as Asset Reconstruction Companies (ARCs), Private Equity Funds, Alternative Investment Funds (AIFs), and other institutional investors with comparable restructuring capabilities.

Therefore, the classification may fail the constitutional test of "intelligible differentia" and reasonable nexus under Article 14.

Impact on Smaller Creditors

Marginalisation of Operational Creditors

Operational creditors already occupy a lower position in the repayment hierarchy under the IBC.

Restricting CIIRP initiation rights exclusively to notified institutions further weakens their bargaining position and reduces their influence during restructuring negotiations.

Disadvantage for Smaller Financial Creditors

Smaller financial creditors also lose the opportunity to initiate the quicker CIIRP process.

To safeguard their interests, they may be compelled to initiate the traditional Corporate Insolvency Resolution Process (CIRP), which remains more time-consuming, expensive, and litigation-intensive.

Consequently, the amendment creates unequal treatment within the same class of financial creditors.

International Practices

United States – Chapter 11 Bankruptcy

Under the United States Chapter 11 framework, participation in corporate restructuring depends on the creditor's financial exposure rather than the regulatory category to which the creditor belongs.

Creditors possessing sufficient financial stakes can actively participate in restructuring regardless of their institutional identity.

United Kingdom – Part 26A Restructuring Plans

Similarly, the United Kingdom's Part 26A restructuring framework allows participation based on objective financial criteria instead of regulatory classification.

The emphasis remains on protecting legitimate economic interests rather than favouring particular categories of institutions.

India's Divergence

Compared to international practices, India's restriction of CIIRP initiation rights to only notified financial institutions appears unusual.

Such institutional discrimination may discourage foreign investors, reduce confidence in India's distressed asset market, and complicate Inter-Creditor Agreements (ICAs) by granting disproportionate bargaining power to selected institutions.

Challenges Associated with CIIRP

Constitutional Vulnerability

The institutional classification may be challenged as violating Article 14 due to the absence of a clear and rational basis for differential treatment.

Reduced Inclusiveness

The mechanism excludes several sophisticated creditors despite their financial expertise and substantial economic exposure.

Concentration of Decision-Making

Granting exclusive initiation rights to notified institutions concentrates power in a limited group of creditors, potentially reducing transparency and fairness.

Possible Impact on Investor Confidence

International investors may perceive the insolvency framework as biased, thereby reducing investment interest in India's stressed asset market.

Way Forward

Adopt a Universal CIIRP Framework

Experts recommend replacing the current institutional classification with a Universal CIIRP based on objective financial criteria.

Instead of asking "Who is the creditor?", the law should ask "How much financial exposure does the creditor have?"

Default-Neutral Initiation Rule

Any financial creditor should be allowed to initiate CIIRP provided that creditors representing at least 51% of the total financial debt support the proposal.

Such a threshold would prevent frivolous filings while ensuring broad creditor consensus.

Ensure Constitutional Compliance

Replacing institutional categories with objective financial thresholds would strengthen compliance with Article 14 by ensuring equal treatment of similarly placed creditors.

Conclusion

The introduction of Creditor-Initiated Insolvency Resolution Process (CIIRP) represents an important step towards making India's insolvency framework faster and less disruptive. However, limiting its use to only notified financial institutions undermines both constitutional principles and commercial fairness.

A truly modern insolvency regime should evaluate creditors based on their financial exposure, not their institutional identity. Adopting a Universal CIIRP supported by creditors holding at least 51% of the total financial debt would make the process more inclusive, constitutionally robust, internationally credible, and better aligned with the objectives of the Insolvency and Bankruptcy Code—namely, maximising asset value, promoting business continuity, protecting creditor interests, and strengthening India's investment climate.

Latest Context

The Indian National Science Academy (INSA), through its Centre for Science, Technology, Innovation and Policy (CSTIP), released a Policy Brief (May 2026) recommending a Unified National Energy Policy Framework (UNEPF). The proposed framework seeks to integrate India's fragmented energy policies and accelerate the country's transition towards Energy Self-Reliance by 2047 and Net-Zero Emissions by 2070.

Introduction

India's energy sector is undergoing a historic transformation as the country rapidly expands renewable energy, modernises its electricity infrastructure, and reduces dependence on imported fossil fuels.

Recognising these challenges, the Indian National Science Academy (INSA) has proposed a Unified National Energy Policy Framework, which views India's energy system as a single integrated ecosystem rather than separate sectors such as coal, petroleum, electricity, renewable energy, and nuclear power. The framework aims to strengthen energy security, improve grid reliability, promote clean energy technologies, and ensure an equitable and economically sustainable energy transition.

What is the Unified National Energy Policy Framework?

Meaning

The Unified National Energy Policy Framework (UNEPF) refers to a coordinated, integrated, and system-wide governance framework that harmonises policies across all segments of India's energy sector, including coal, oil, natural gas, renewable energy, electricity, green hydrogen, nuclear energy, and climate commitments.

Instead of treating different energy sources as competing markets, the framework considers the national power grid, energy supply chains, storage infrastructure, and energy consumers as interconnected components of a unified national energy ecosystem.

Need for a Unified National Energy Policy

Transition from Capacity Addition to System Integration

• India's renewable energy capacity has increased dramatically from nearly 40 GW in 2015 to approximately 260 GW by 2025. While this rapid expansion represents significant progress, managing such a large share of intermittent renewable energy requires sophisticated system-wide integration.

• Solar and wind energy must be effectively balanced with thermal power plants, Pumped Storage Hydropower (PSH), and Battery Energy Storage Systems (BESS) to maintain grid stability and prevent frequency fluctuations.

• Therefore, future energy policy must move beyond simply increasing installed capacity and focus on creating an integrated, resilient energy system.

Addressing Institutional Fragmentation

• India's energy governance is currently divided among multiple ministries, including the Ministry of Coal, Ministry of Power, Ministry of Petroleum and Natural Gas (MoPNG), Ministry of New and Renewable Energy (MNRE), and the Department of Atomic Energy (DAE).

• Each ministry operates independently with different priorities, timelines, and regulatory mechanisms. This fragmentation often results in overlapping policies, administrative delays, and inefficient utilisation of national resources.

• A unified framework would enable coordinated planning and treat coal, natural gas, biomass, nuclear energy, and renewable energy as complementary components of a diversified energy portfolio.

Balancing Supply and Demand

• India has launched ambitious programmes such as the National Green Hydrogen Mission and the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative for compressed biogas.

• However, infrastructure development, pipeline connectivity, storage facilities, and commercial demand have not expanded at the same pace as production capacity. This mismatch creates bottlenecks that reduce the effectiveness of these programmes.

• A unified policy would synchronise production with infrastructure development and market demand.

Eliminating Data Silos

Energy-related data remains scattered across multiple agencies using different formats and reporting systems.

The proposed National Electricity Data Centre (NEDC) under the National Electricity Data Sharing Framework, 2026 seeks to standardise electricity data, facilitate AI-based grid management, improve demand forecasting, and strengthen long-term energy planning.

Reducing Fiscal Burden and Import Dependence

• India imports more than 85% of its crude oil requirements, making the economy vulnerable to global price volatility and geopolitical disruptions.

• Simultaneously, energy subsidies account for approximately 2.3% of India's GDP, placing considerable pressure on public finances.

• A unified energy framework would better coordinate subsidy programmes, strengthen DISCOM reforms, integrate Carbon Capture, Utilisation and Storage (CCUS) technologies, and promote demand-side schemes such as PM Surya Ghar and PM-KUSUM.

Major Challenges in Implementing the Unified Framework

Institutional Fragmentation

Creating a unified governance mechanism may require establishing a central coordinating authority, such as a Department of Energy Resources.

However, such reforms could face resistance due to overlapping ministerial jurisdictions and bureaucratic interests, making institutional coordination a significant challenge.

Transmission Infrastructure Deficit

India's renewable energy projects typically require 12–18 months for commissioning, whereas interstate transmission infrastructure often takes 18–30 months to become operational.

This mismatch creates severe transmission congestion, resulting in renewable energy curtailment and underutilisation of clean energy assets.

Maintaining India's grid frequency within the narrow operational range of 49.90 Hz to 50.05 Hz becomes increasingly difficult as intermittent renewable generation rises.

Energy Storage Deficiency

The Central Electricity Authority (CEA) estimates that India will require approximately 60.63 GW of energy storage capacity by 2030, including 41.65 GW from Battery Energy Storage Systems (BESS).

Current operational storage capacity remains significantly below this requirement due to high investment costs and dependence on imported critical minerals.

Financial Stress of DISCOMs

State-owned Distribution Companies (DISCOMs) continue to suffer from persistent financial losses due to high Aggregate Technical and Commercial (AT&C) losses, inadequate tariff revisions, and operational inefficiencies.

Their weak financial position limits investment in smart grids, advanced metering infrastructure, flexible power procurement, and modern distribution systems.

Federal Challenges and Just Transition

India's transition towards clean energy must account for regional differences in economic development and employment patterns.

States that depend heavily on coal mining and thermal power generation may experience significant economic disruption during decarbonisation.

Designing region-specific transition strategies while respecting India's federal structure remains a major policy challenge.

Key Features of the Proposed INSA Framework

Adequacy

The framework seeks to ensure a reliable, diversified, and resilient energy supply by combining conventional energy sources with emerging clean technologies.

It emphasises modern infrastructure, digital grid management, and large-scale energy storage to strengthen long-term energy security.

Access

Universal access to reliable and affordable energy remains a central objective.

The framework proposes strengthening last-mile electricity delivery, improving service quality, and promoting decentralised renewable energy solutions in remote and underserved regions.

Affordability

The transition towards clean energy should remain economically viable for households, industries, and commercial establishments.

This requires innovative financing mechanisms, competitive markets, and consumer protection measures to ensure affordable energy prices.

Appropriate Sustainability

Instead of adopting a uniform national strategy, the framework advocates region-specific energy transition pathways that consider India's diverse social, economic, and environmental conditions.

Special emphasis is placed on workforce development, local community participation, and equitable transition strategies.

Strategic Enablers and Emerging Technologies

Circular Economy

The framework promotes circular economy principles by encouraging efficient resource utilisation, waste minimisation, recycling, and recovery of valuable materials throughout the energy value chain.

Carbon Capture, Utilisation and Storage (CCUS)

CCUS is identified as a critical technology for reducing emissions from hard-to-abate sectors such as steel, cement, chemicals, and thermal power generation.

It complements renewable energy rather than replacing conventional energy sources entirely.

Green Hydrogen

The policy recommends accelerating commercial deployment of Green Hydrogen, recognising its importance for decarbonising heavy industries, transportation, fertilisers, and energy storage.

Advanced Bio-resources

Greater emphasis is placed on bioenergy, biomass, compressed biogas, and waste-to-energy technologies to diversify India's clean energy mix.

Integrated Resource Optimisation

The framework views coal, natural gas, renewables, biomass, waste-to-energy, and nuclear power as interconnected national assets that should function together rather than compete independently.

Significance of the Unified Energy Framework

Strengthening Energy Security

A diversified and integrated energy system reduces dependence on imported fossil fuels and improves resilience against global supply disruptions.

Supporting Energy Self-Reliance

The framework directly contributes to India's vision of achieving Energy Independence by 2047 by promoting domestic energy production, clean technologies, and indigenous manufacturing.

Accelerating Net-Zero Transition

Integrated planning facilitates large-scale deployment of renewable energy, Green Hydrogen, CCUS, and storage technologies, supporting India's commitment to achieve Net-Zero emissions by 2070.

Enhancing Grid Stability

Coordinated investment in transmission infrastructure, storage systems, and digital grid technologies improves grid reliability despite increasing renewable energy penetration.

Improving Economic Efficiency

Better coordination among ministries, harmonised regulations, and integrated investment planning reduce duplication, optimise public expenditure, and improve market efficiency.

Government Initiatives Supporting Energy Transition

India has already launched several initiatives that complement the proposed framework, including the National Green Hydrogen Mission, PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM, SATAT Initiative, National Electricity Data Sharing Framework, National Smart Grid Mission, Battery Energy Storage System (BESS) Programme, Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells, National Bioenergy Programme, and the National Solar Mission.

Way Forward

Strengthen Institutional Coordination

India should establish an integrated governance mechanism capable of coordinating policies across all energy ministries while preserving sector-specific expertise.

Expand Transmission Infrastructure

Transmission planning should be synchronised with renewable energy development to eliminate grid congestion and renewable energy curtailment.

Accelerate Energy Storage Deployment

Greater investment in Battery Energy Storage Systems, Pumped Storage Hydropower, and indigenous battery manufacturing should become a national priority.

Reform DISCOMs

Financial restructuring, smart metering, tariff rationalisation, reduction of AT&C losses, and improved operational efficiency are essential for enabling large-scale clean energy integration.

Promote Region-Specific Just Transition

Targeted financial assistance, workforce reskilling, social protection measures, and alternative employment opportunities should support coal-dependent regions during the energy transition.

Conclusion

The Unified National Energy Policy Framework represents a significant shift from fragmented energy governance towards an integrated, resilient, and future-ready energy ecosystem. By breaking institutional silos, strengthening grid infrastructure, expanding energy storage, promoting Green Hydrogen, Circular Economy, and Carbon Capture, Utilisation and Storage (CCUS) technologies, India can simultaneously achieve energy security, economic competitiveness, and climate sustainability.

A coordinated and holistic energy policy will not only support India's ambition of Energy Self-Reliance by 2047 and Net-Zero emissions by 2070, but also create a reliable, affordable, and inclusive energy system capable of powering the country's long-term economic growth and sustainable development