6 February 2026 Current Affairs (With PDF)

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16th Finance Commission: Recommendations for Strengthening Local Bodies

Why in News

The 16th Finance Commission (FC) has proposed ₹7.9 lakh crore in grants for Rural Local Bodies (RLBs) and Urban Local Bodies (ULBs) for the five-year period FY 2026–27 to 2030–31, along with major structural reforms to improve local government finances.

Key Challenges in Local Body Financing

1. Structural Revenue Weakness

• Low property tax mobilisation due to Incomplete and outdated property records & Low tax coverage and poor valuation practices
• Weak enforcement and limited use of digital tools.

2. Excessive Dependence on Higher Governments

• Panchayats derive over 90% of revenues from grants, limiting fiscal autonomy.
• Transfers often tied to schemes rather than local priorities.

3. Limited Market-Based Financing

• Municipal borrowing remains below 0.05% of GDP.
• Causes include Underdeveloped municipal bond markets & Weak creditworthiness and accounting standards

4. Institutional and Governance Constraints

• Delays in constitution of State Finance Commissions (SFCs).
• Data gaps, inconsistent accounting practices, and lack of transparency.

Major Recommendations of the 16th Finance Commission

1. Strengthening Property Tax Systems

• States to develop citizen-friendly, GIS-based property tax IT platforms.
• Aim: Improve coverage, valuation accuracy, and compliance.

2. Rural–Urban Grant Allocation

• Total local body grants to be divided in a 60:40 ratio:
• 60% for Rural Local Bodies (RLBs) & 40% for Urban Local Bodies (ULBs)

3. Urbanisation Incentive (“Urbanisation Premium”)

• ₹10,000 crore earmarked to encourage Merger of peri-urban villages into adjoining ULBs with population above 1 lakh
• Objective: Manage urban sprawl and enable integrated urban planning.

4. Constitutional Reform Recommendation

• Suggested removal of the constitutional requirement that Central FC recommendations must be made “on the basis of” SFC recommendations (Articles 280(3)(bb) and 280(3)(c))
• Rationale: Reduce delays and improve efficiency in fund devolution.

5. Dissemination of Best Practices

• NITI Aayog to study SFC functioning across states.
• Publication of a best-practices compendium to guide states on fiscal decentralisation.

Sources of Local Body Financing (Conceptual Clarity)

1. Own Revenue

• Tax revenue: Property tax, profession tax (Article 243X)
• Non-tax revenue: User charges, license fees, permit fees

2. Inter-Governmental Transfers

• Finance Commission grants, State government transfers, Scheme-linked and conditional grants

3. Borrowings and Innovative Financing

• Municipal bonds (general obligation bonds), Pooled financing mechanisms for small ULBs, Land value capture and land monetisation models

Significance of the Recommendations

• Enhances fiscal autonomy and accountability of local governments.
• Supports urbanisation management, infrastructure creation, and service delivery.
• Strengthens the constitutional vision of democratic decentralisation under 73rd and 74th Amendments.

Carbon Capture Utilisation and Storage (CCUS): Budget 2026–27

Why in News

• Union Budget 2026–27 proposed an outlay of ₹20,000 crore to scale up Carbon Capture Utilisation and Storage (CCUS) technologies.
• The initiative aligns with the Department of Science & Technology (DST) CCUS Roadmap 2025.

What is CCUS?

CCUS refers to a set of technologies that:

• Capture CO₂ from large point sources (power plants, cement, steel, refineries, chemical industries)
• Utilise CO₂ in industrial processes or products, or
• Store CO₂ permanently in deep geological formations such as: Depleted oil and gas reservoirs, Saline aquifers, Basalt formations (e.g., Deccan Traps)

Key CCUS Technologies

• Chemical solvent-based absorption
• Cryogenic separation
• Direct Air Capture (DAC)
• Enhanced Oil Recovery (EOR)
• Bio-Energy with Carbon Capture and Storage (BECCS)

Sectoral Focus (as per DST Roadmap)

CCUS deployment targeted across five hard-to-abate sectors: Power, Steel, Cement, Refineries, Chemicals

Why CCUS is Critical for India

1. Decarbonising Hard-to-Abate Sectors

Essential for industries where emissions cannot be eliminated solely through renewable energy (cement, steel, chemicals).

2. Supporting Green Hydrogen at Scale

Enables least-cost low-carbon hydrogen production, accelerating economy-wide decarbonisation.

3. Meeting Global Climate Targets

Achieving global Net Zero by 2050 requires ≥1 billion tonnes/year of CCUS capacity by 2030.

4. Trade Competitiveness

Helps Indian exports remain competitive amid carbon border measures like the EU’s CBAM.

Key Challenges in CCUS Deployment

• High costs across the value chain (especially carbon capture stage)
• Limited technological maturity and scale
• Insufficient pilot projects and testing
• Regulatory and market uncertainty
• Funding constraints for large-scale deployment

DST’s CCUS Roadmap 2025: Phased Strategy

Phase I: Research & Pilots (2025–2030)

• Breakthrough R&D in materials and capture technologies
• Establishment of critical CCUS research facilities
• Pilot-scale demonstration projects

Phase II: Scale-Up & Regulation (2030–2035)

• Rollout of hub-and-cluster models in industrial regions
• Drafting of national CCS regulatory framework
• Expansion of CO₂ mineralisation in basalt formations (Deccan Traps)
• Linking CCUS to emerging carbon markets

Phase III: Commercialisation (2035–2045)

• Development of two commercial-scale CCS hubs
• Integration with India’s hydrogen economy
• Completion of legal, safety, and commercial frameworks for CCS

Significance of Budgetary Support

• Accelerates technology readiness levels (TRLs) in Indian industry
• Reduces long-term decarbonisation costs
• Positions India as a clean-tech and climate-solutions hub
• Bridges climate action with industrial growth and energy security

Research, Development and Innovation (RDI) Fund: First Open Call Launched

Why in News

• The Ministry of Science and Technology has launched the first Open Call under the Research, Development and Innovation (RDI) Fund.
• The call is being implemented through the Technology Development Board (TDB) and targets projects at Technology Readiness Level (TRL) 4 and above.

About the First Open Call

• Focuses on technology development and pre-commercial validation stages.
• Aims to bridge the gap between laboratory research and market-ready products.
• Encourages participation from private enterprises, startups, and industry-led innovators.

What is Technology Readiness Level (TRL)?

• TRL is a globally accepted framework to assess the maturity of a technology.
• It tracks the journey from conceptual research to full commercial deployment.
• Origin: Developed by NASA to evaluate space technologies.

TRL Scale (Overview)

• TRL 1–3: Basic research and proof of concept
• TRL 4–6: Prototype development and validation in relevant environments
• TRL 7–9: System demonstration, deployment, and commercial application

The current call supports projects from TRL 4 onwards, indicating readiness beyond early research.

About the RDI Fund

• A Special Purpose Fund created under the RDI Scheme, a flagship initiative of the Department of Science and Technology (DST).
• Designed to crowd-in private investment into India’s innovation ecosystem.

Objectives

• Accelerate technology-led economic growth
• Support the conversion of indigenous ideas into globally competitive products
• Reduce dependence on imports in strategic and sunrise sectors

Fund Structure and Financing Mechanisms

• Total Corpus: ₹1 lakh crore over six years
• Flexible Funding Instruments: Long-tenure, collateral-free loans: up to 50% of project cost
• Equity participation: up to 25% of assistance sought
• Debt-to-equity conversion: allowed at later stages

Priority Focus Areas

• Energy Security, Energy Transition & Climate Action
• Deep Technologies: Quantum computing, robotics, space technologies
• Artificial Intelligence: India-specific and scalable applications
• Biotechnology & Medical Technologies
• Digital Economy & Digital Agriculture

Significance

• Strengthens India’s innovation-to-commercialisation pipeline
• Enables risk-sharing in high-capital, high-impact technologies
• Positions India as a technology creator, not just a technology adopter
• Supports long-term goals of Atmanirbhar Bharat and global competitiveness

FORGE Initiative (Forum on Resource, Geostrategic Engagement)

Why in News

• The United States announced the launch of the FORGE Initiative during the inaugural Critical Minerals Ministerial held in Washington D.C.
• The Ministerial brought together delegations from over 50 countries, including India, to strengthen cooperation on critical mineral supply chains.

Background: Critical Minerals Ministerial

• Host: United States
• Participation: 50+ countries
• Purpose: Enhance global coordination for securing, diversifying, and stabilising supply chains of critical minerals essential for clean energy, defence, and advanced technologies.

About FORGE

• Full Form: Forum on Resource, Geostrategic Engagement
• Nature: A multilateral strategic cooperation platform on critical minerals.
• Institutional Lineage: Created as the successor to the Minerals Security Partnership (MSP).

Minerals Security Partnership (MSP) – Context

• Objective: Strengthen critical minerals supply chains to support Economic growth, Clean energy transition, Climate goals
• Focus: Public–private collaboration and project-level coordination among partner countries.

Objectives of FORGE

• Supply Chain Security: Build diversified, resilient, and secure global critical mineral supply chains.
• Policy-Level Cooperation: Harmonisation of regulations, standards, and strategic approaches among partners.
• Project-Level Collaboration: Joint investments across the value chain—from mining and processing to recycling.
• Geostrategic Engagement: Reduce excessive concentration of mineral supply chains and mitigate geopolitical vulnerabilities.

Strategic Significance

• Energy Transition: Supports supply of minerals critical for EVs, batteries, renewables, and hydrogen technologies.
• Economic Security: Reduces dependency risks arising from concentrated mineral production.
• Geopolitical Dimension: Aligns critical mineral strategy with broader strategic and security considerations.
• Relevance for India: Complements India’s National Critical Minerals Mission and Rare Earth initiatives, Enhances India’s role in trusted global mineral partnerships.

BRICS Centre for Industrial Competencies (BCIC)

Why in News

India has formally joined the BRICS Centre for Industrial Competencies (BCIC) to strengthen manufacturing capabilities and MSME competitiveness, particularly in advanced industrial technologies.

About BRICS

• Composition: Group of 11 countries representing major economies of the Global South.
• Purpose: Functions as a platform for political coordination, economic cooperation, and development partnerships among emerging economies.

About BRICS Centre for Industrial Competencies (BCIC)

• Institutional Framework: Established in collaboration with the United Nations Industrial Development Organization (UNIDO).
• Nature: Designed as a single-window facilitation centre for industrial capability building across BRICS nations.

Key Objectives and Functions

• Industrial Capability Development: Supports manufacturing firms and MSMEs in upgrading skills, processes, and technologies.
• Industry 4.0 Focus: Promotes competencies related to automation, digital manufacturing, artificial intelligence, data analytics, and smart production systems.
• Integrated Support Services: Offers training, technical assistance, advisory services, and best-practice sharing among BRICS countries.
• Cross-Country Collaboration: Encourages knowledge exchange and industrial cooperation within the BRICS manufacturing ecosystem.

India’s Role in BCIC

• Nodal Institution: The National Productivity Council (NPC) has been designated as the India Centre for BCIC.
• Expected Benefits for India: Enhances MSME productivity and global competitiveness.
• Supports Make in India and manufacturing-led growth strategies.
• Facilitates access to global industrial standards and advanced manufacturing practices.

National Disaster Management Authority (NDMA)

Why in News

• NDMA released the National Disaster Management Guidelines on Comprehensive Disaster Victim Identification (DVI) and Management.
• These guidelines constitute India’s first-ever Standard Operating Procedure (SOP) for victim identification during mass fatality incidents.

National Disaster Management Guidelines on Disaster Victim Identification (DVI)

1. Key Features

• First national SOP for systematic identification and management of victims in large-scale disasters.
• Applicable to disasters involving multiple fatalities such as earthquakes, floods, industrial accidents, air crashes, stampedes, etc.

2. Major Recommendations

• National Dental Data Registry: Creation of a centralized database of dental records to assist in rapid and accurate victim identification.
• Use of Forensic Techniques: Adoption of forensic archaeology to locate, recover, and interpret human remains, especially in buried or decomposed conditions, Integration of forensic anthropology, odontology, DNA profiling, and fingerprint analysis.
• Inter-agency Coordination: Standardized coordination among police, forensic institutions, disaster response forces, health departments, and local authorities.
• Dignity and Rights of Victims: Emphasis on ethical handling of human remains and sensitive communication with families.

Significance of the Guidelines

• Strengthens disaster preparedness by institutionalising scientific victim identification mechanisms.
• Improves accuracy and credibility of identification, reducing misidentification risks.
• Enhances humanitarian response, ensuring dignity of the deceased and closure for families.
• Aligns India with global best practices in disaster victim identification.

About National Disaster Management Authority (NDMA)

• Status: Statutory body
• Established under: Disaster Management Act, 2005
• Role: Apex body for disaster management in India
• Chairperson: Prime Minister of India

Mandate

• Lays down policies, plans, and guidelines for disaster management.
• Coordinates enforcement and implementation of disaster management strategies across ministries and states.
• Promotes prevention, mitigation, preparedness, response, recovery, and capacity building.

Ad hoc Judges

Why in News

Supreme Court Collegium approved the appointment of five retired judges as ad hoc judges in the Allahabad High Court to address pendency of cases.

Constitutional Provision

Article 224A of the Constitution of India

• Empowers the Chief Justice of a High Court to request a retired judge of any High Court to sit and act as a judge.
• Requires prior consent of the President of India.
• Consent of the retired judge is mandatory.

Key Features of Ad hoc Judges

1. Temporary Appointment

• Appointed for a specified period or for disposal of specific categories of cases.
• Not considered permanent judges of the High Court.

2. Powers and Jurisdiction

• Enjoy the same powers, jurisdiction, and privileges as regular High Court judges during their tenure.
• Their judgments carry full legal validity.

3. Purpose

• To reduce case pendency and judicial backlog.
• To utilize judicial experience without creating permanent posts.

Distinction from Additional Judges (Article 224)

Exercise KHANJAR (13th Edition)

Why in News

The 13th edition of the Joint Special Forces Exercise KHANJAR has commenced at Misamari, located in Sonitpur district of Assam.

About Exercise KHANJAR

• Nature: Annual bilateral military exercise
• Participating Countries: India and Kyrgyzstan
• Forces Involved: Special Forces contingents of both nations

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