NEWS 1:RBI permits banks to fund M&As and extend rupee loans to neighboring countries boosting financial markets and internationalizing the rupee.
GS-3 economy
- The RBI has permitted banks to finance corporate mergers and acquisitions (M&As), a practice previously restricted.
- Banks can now provide rupee-denominated loans to residents of neighboring countries like Nepal, Bhutan, and Sri Lanka.
- The RBI has kept the repo rate unchanged at 5.5 percent, maintaining a ‘neutral’ monetary policy stance.
- The RBI plans to increase the lending limit for IPO financing from Rs 10 lakh to Rs 25 lakh.
IPO (Initial Public Offering)
An IPO (Initial Public Offering) is the process through which a private company offers its shares to the public for the first time by listing them on a stock exchange. It marks the transition of a company from being privately held to becoming a publicly traded entity.
Key Features of IPO:
- First-time public issue – Shares are offered to institutional and retail investors.
- Capital raising – Helps the company raise funds for expansion, debt repayment, R&D, or working capital.
- Listing on stock exchanges – After an IPO, shares are traded freely on exchanges like NSE, BSE (India), NYSE, NASDAQ (USA), etc.
- Valuation – Determined through book building (price discovery via bids) or fixed price issue.
Types of IPO:
- Fixed Price IPO – Price of shares is pre-decided and disclosed in advance.
- Book Building IPO – A price band is given, and investors bid within the range. The final price is discovered based on demand.
Process of IPO:
- Appointment of merchant banker (lead manager).
- SEBI approval (in India) and filing of Draft Red Herring Prospectus (DRHP).
- Price band announcement.
- Subscription period (investors apply for shares).
- Allotment of shares.
- Listing on stock exchange.
Advantages of IPO:
- Access to large capital.
- Enhanced visibility and credibility.
- Provides liquidity to existing investors.
- Stock-based employee incentives possible.
Disadvantages of IPO:
- High compliance and regulatory burden.
- Ownership dilution (promoters lose some control).
- Pressure of quarterly results and shareholder expectations.
- High cost of going public.
NEWS 2:Delhi’s air quality forecasting shows 80% accuracy but outdated data limits effectiveness hindering proactive pollution control measures.
GS-3 environment
- Delhi’s Air Quality Early Warning System (AQEWS) accurately predicted high-pollution days over 80% of the time [in the winters of 2023-24 and 2024-25].
- The AQEWS, run by IITM Pune and IMD, forecasts Delhi’s air quality three days in advance.
- A study by CEEW found the system’s effectiveness is limited by outdated emission inventories and underprediction of pollutant levels.
- The Commission for Air Quality Management (CAQM) announced in December 2024 it would no longer use the Decision Support System (DSS) due to outdated inventories.
The Air Quality Early Warning System (AQEWS) is an advanced forecasting and alert mechanism developed to provide timely warnings on deteriorating air quality so that preventive and mitigation measures can be taken in advance.
📌 About AQEWS:
- Launched by: Indian Institute of Tropical Meteorology (IITM), Pune (under MoES), in collaboration with IMD, IIT Delhi, and NEERI.
- Coverage: Initially developed for Delhi-NCR, later extended to other regions of India.
- Purpose: To provide short-term (up to 3 days) and medium-term (up to 10 days) forecasts of air quality.
📊 How it Works:
- Uses weather models, emission inventories, and satellite data to predict pollution levels.
- Forecasts concentrations of major pollutants like PM2.5, PM10, O₃, NO₂, CO, SO₂.
- Provides warnings for episodes such as smog, dust storms, stubble burning smoke transport, and Diwali pollution spikes.
- Issues Air Quality Index (AQI)-based color-coded alerts for decision-makers and the public.
Limitations:
- Accuracy depends on input data (emission inventory often outdated).
- Cannot completely prevent pollution; only helps in preparedness.
- Needs local-level forecasting systems for better resolution.
NEWS 3:Cabinet approves ₹6957 crore highway project through Kaziranga with 34-km elevated corridor for animal passage aiming enhanced connectivity.
GS-3 environment
- The Union Cabinet approved the construction of an 86-km four-lane highway from Kaliabor to Numaligarh on NH-715 in Assam.
- The project cost is ₹6,957 crore, with a construction period of three years.
- A 34-km elevated viaduct will be built within Kaziranga National Park to allow animal passage.
- The highway is part of the Guwahati-Dibrugarh Corridor along the Brahmaputra river.
- The existing Kaliabor-Numaligarh section of NH-715 (old NH-37) is partially two-laned, passing through Kaziranga National Park and populated areas.
- The project includes widening the existing two-lane road to four lanes and constructing 21 km of greenfield bypasses around Jakhalabandha and Bokakhat.
- The design was developed in consultation with the Union Environment Ministry, National Tiger Conservation Authority (NTCA), and Wildlife Institute of India (WII).
- The project aims to improve connectivity between Guwahati, Kaziranga National Park, and Numaligarh, integrating with NH-127, NH-129, and SH-35, enhancing connectivity to upper Assam, Nagaland, and Arunachal Pradesh.
NEWS 4:Government raises MSP for six Rabi crops wheat gets ₹160 hike; ₹11440 crore pulses mission approved for self-sufficiency.
GS-3 environment , agriculture
- The Centre increased the Minimum Support Prices (MSPs) for six Rabi crops for the Rabi Marketing Season (RMS) 2026-27.
- Wheat saw the highest increase of ₹160 per quintal.
- Wheat procurement reached 29.98 million tonnes during RMS 2025-26, with ₹71,758 crore paid to 23.54 lakh farmers.
- The Union Cabinet approved the Mission for Aatmanirbharta in Pulses with a financial outlay of ₹11,440 crore from 2025-26 to 2030-31.
MSP (Minimum Support Price) is the price at which the government guarantees to purchase crops from farmers, regardless of market fluctuations. It acts as a safety net for farmers against a fall in market prices.
📌 Key Features of MSP
- Announced by: Government of India before each sowing season.
- Based on: Recommendations of the Commission for Agricultural Costs and Prices (CACP).
- Crops Covered: Currently MSP is declared for 23 crops (7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops like cotton, jute, copra, sugarcane*).
- Legal Status: MSP is not legally binding (except for sugarcane, where mills must pay FRP – Fair & Remunerative Price).
✅ Objectives of MSP
- Protect farmers from price crashes and exploitation by middlemen.
- Ensure food security by incentivizing production of essential crops.
- Encourage crop diversification (though in practice rice & wheat dominate).
- Stabilize farm incomes.
⚙️ How MSP Works
- CACP recommends MSPs based on cost of production, demand-supply, price trends, international prices, and terms of trade for farmers.
- Cabinet Committee on Economic Affairs (CCEA) approves.
- Procurement agencies like FCI, NAFED, Cotton Corporation of India, etc., purchase crops at MSP.
- If market prices fall below MSP, farmers can sell to the government.
MAINS MOCK QUESTION
“Minimum Support Price (MSP) is often described as a double-edged sword. Critically examine its role in ensuring farmers’ welfare and food security, while also highlighting its limitations and the ongoing debate on granting MSP a legal guarantee.”
