Why in news?

The Union Cabinet has approved the launch of the Urban Challenge Fund (UCF). The fund will provide ₹1 lakh crore in central assistance to drive urban development initiatives.

According to the government, the UCF is expected to catalyse a total investment of ₹4 lakh crore over the next five years in the urban sector, significantly boosting city infrastructure and development.

The approval comes alongside the Centre’s clearance of projects worth about ₹1.6 trillion ($18 billion) focused on infrastructure, urban development, and startup ecosystems.

What’s in Today’s Article?

• Urban Challenge Fund: Budget Announcement and Allocations
• Objectives and Vision of the Urban Challenge Fund
• Coverage and Target Cities Under the Urban Challenge Fund
• Project Focus Areas Under the Urban Challenge Fund
• Funding Structure of the Urban Challenge Fund

Urban Challenge Fund (UCF): Budget Announcement and Allocations

• The UCF was first announced in the Union Budget 2025–26 by Finance Minister Nirmala Sitharaman.
• The fund, with a proposed corpus of ₹1 lakh crore, aims to support projects focused on cities as growth hubs, creative urban redevelopment, and improvements in water and sanitation infrastructure.
• An initial allocation of ₹10,000 crore was proposed for 2025–26, though operational rules were still pending at the time.
• In the Union Budget 2026–27, another ₹10,000 crore was allocated to continue the rollout of the fund.

Objectives and Vision of the Urban Challenge Fund

• The UCF aims to mobilise market financing, encourage private sector participation, and promote citizen-centric reforms to build high-quality urban infrastructure.
• It seeks to create resilient, productive, inclusive, and climate-responsive cities, positioning urban centres as engines of India’s next phase of economic growth.
• The initiative represents a shift from traditional grant-based funding to a market-linked, reform-driven, and outcome-oriented model of urban development.
• The UCF will operate from FY 2025–26 to FY 2030–31, with a possible extension of implementation up to FY 2033–34.

Coverage and Target Cities Under the Urban Challenge Fund

• The UCF will cover all cities with a population above 10 lakh, all State capitals, and major industrial cities with populations exceeding 1 lakh.
• In addition, the Centre will place special emphasis on Tier-II and Tier-III cities, as well as cities in the North Eastern and hilly regions, ensuring balanced and inclusive urban development across the country.

Project Focus Areas Under the Urban Challenge Fund

• The Urban Challenge Fund (UCF) will support projects across three key verticals aimed at strengthening urban infrastructure and sustainability.
• Cities as Growth Hubs - This vertical focuses on greenfield and semi-greenfield development, along with trunk infrastructure creation. It includes projects along transit and economic corridors, as well as the development of counter-magnets to improve urban mobility and reduce congestion.
• Creative Redevelopment of Cities - This component emphasises retrofitting and upgrading legacy infrastructure, promoting pedestrian-friendly mobility, and rejuvenating Central Business Districts and heritage cores. It also supports regeneration of brownfield areas and removal of negative externalities.
• Water and Sanitation - Under this segment, projects will upgrade water supply, sewerage, and stormwater systems, and establish water grids. The focus includes Swachhata initiatives, solid waste management, legacy waste remediation, and integrated water processing systems.

Funding Structure of the Urban Challenge Fund

• Under the UCF, the Centre will provide 25% of a project’s cost as central assistance, provided that at least 50% of the funding is raised through market sources.
• The remaining 25% will be contributed by States, Union Territories, urban local bodies, or other external stakeholders, ensuring shared financial responsibility and market participation.

Why in news?

The Ministry of Electronics and Information Technology (MeitY) has amended the Information Technology (IT) Rules, 2021 to mandate labelling of AI-generated content by users and social media platforms.

The amendment also significantly reduces the content takedown timeline — from the earlier 24–36 hours to just 2–3 hours — for all types of online content, not limited to AI-generated material.

The revised rules will come into effect from February 20.

What’s in Today’s Article?

• AI-Generated Content Under the 2026 IT Rules
• Detecting AI-Generated Content: Platform Responsibilities and Technical Standards
• Tightened Takedown Timelines Under Amended IT Rules
• Stricter User Notifications and Liability Warnings

AI-Generated Content Under the 2026 IT Rules

• Mandatory Labelling of Synthetic Content
  • The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 require social media platforms to prominently label “synthetically generated” or AI-generated images and videos.
  • Platforms with over five million users must obtain a user declaration for AI-generated content and conduct technical verification before publishing it.
  • According to MeitY, the measure aims to combat deepfakes, misinformation, privacy violations, and threats to national integrity.
  • The goal is to ensure users are clearly informed when content is AI-generated or inauthentic.
• Narrowed Definition and Exemptions
  • While the earlier draft had a broader definition of “Synthetically Generated Information” (SGI), the final rules provide exemptions.
  • Automatically retouched smartphone photos and film special effects are excluded from mandatory labelling.
• Prohibited Synthetic Content
  • The rules strictly prohibit certain types of AI-generated material, including:
    • Child sexual exploitation and abuse content
    • Forged documents
    • Information on developing explosives
    • Deepfakes falsely impersonating real individuals
  • These provisions strengthen safeguards against harmful or unlawful AI use.

Detecting AI-Generated Content: Platform Responsibilities and Technical Standards

• The government has directed large social media platforms to deploy “reasonable and appropriate technical measures” to detect and prevent unlawful synthetically generated information (SGI), while ensuring proper labelling, provenance tracking, and identifier requirements for permissible AI-generated content.
  • According to IT Ministry officials, major platforms already possess sophisticated AI tools capable of detecting synthetic content.
  • The new rules formalise and mandate the consistent use of these detection systems rather than introducing entirely new obligations.
  • In addition, several AI companies and digital platforms are part of the Coalition for Content Provenance and Authenticity (C2PA), which has developed technical standards to embed invisible digital markers in AI-generated content.
  • These markers can help other platforms identify such content if automated detection systems fail.
• While the amended rules refer to “provenance/identifier requirements,” the government has clarified that it does not intend to endorse any single technological framework.
  • Provenance and identifier requirements define the necessary, documented record of a resource’s origin, ownership, and history, ensuring authenticity and trust. 
• Instead, it seeks to institutionalise the broader objective of reliable AI content detection and traceability through collaborative standards.

Tightened Takedown Timelines Under Amended IT Rules

• The amended IT Rules significantly shorten the timelines for removing unlawful content.
• Government- and Court-Ordered Takedowns: Platforms must now comply within 2–3 hours, instead of the earlier 24–36 hours.
• User Complaints (General Categories): For issues such as defamation and misinformation, response time has been reduced from two weeks to one week.
• Sensitive Content Reports (Rule 3(2)(b)): The deadline has been cut from 72 hours to 36 hours.
• The government justified these changes by arguing that longer timelines previously allowed harmful content to cause significant damage before removal, making stricter response windows necessary.

Stricter User Notifications and Liability Warnings

• The amended IT Rules introduce tighter obligations for platforms to inform and caution users.
• More Frequent Policy Reminders: Platforms must now notify users of their terms and conditions every three months, instead of once a year. These notifications must clearly explain consequences of non-compliance and reporting obligations.
• Explicit Warnings on AI Misuse
  • Users must be warned that posting harmful deepfakes or other illegal AI-generated content may lead to:
    • Immediate content removal
    • Suspension or termination of accounts
    • Disclosure of identity to law enforcement agencies
  • These changes aim to strengthen accountability and deter misuse of AI-generated content online.

Why in News?

• A new study by NITI Aayog titled “Scenarios Towards Viksit Bharat and Net Zero” outlines possible pathways for India’s electricity transition up to 2070.
• While coal currently dominates India’s electricity generation, the report projects a long-term structural shift toward renewable energy (RE).
• This shift will be supported by nuclear expansion, storage technologies, and possible decarbonisation of coal through Carbon Capture, Utilisation and Storage (CCUS).
• The study examines two pathways: Current Policy Scenario (CPS) – Continuation of existing policies, and Net Zero Scenario (NZS) – Accelerated pathway aligned with India’s 2070 net-zero target.

What’s in Today’s Article?

• Present Electricity Landscape - Coal Still the Backbone
• Structural Constraints in Renewable Energy
• Electricity Mix Projections up to 2070
• Massive Storage Expansion Required
• Nuclear Power as Strategic Pillar
• Coal’s Continuing Role in Transition
• Alternative Pathway Risks
• Challenges and Way Forward
• Conclusion

Present Electricity Landscape - Coal Still the Backbone:

• Coal accounts for about 74% of electricity generation, providing low-cost base-load power, grid stability, and round-the-clock reliability.
• Installed capacity (December 2025):
  • Total: 513 GW
  • Fossil-based: 48%
  • Renewable: 50%
  • Nuclear: 1.7%
• However, despite renewables constituting 50% of installed capacity, their contribution to actual electricity generation remains only about 22% (2024-25).

Structural Constraints in Renewable Energy:

• The gap between renewable capacity and actual generation is due to following structural challenges -
  • Low capacity utilisation factor (CUF): Solar and wind operate below maximum potential output.
  • Intermittency and variability: Solar and wind are weather-dependent, leading to curtailment, dispatch challenges, and grid instability risks.
  • Grid constraints: Limited transmission capacity, and inadequate system flexibility.
  • Storage deficit: Lack of large-scale long-duration energy storage.
• Because of these constraints, coal continues to provide essential balancing power.

Electricity Mix Projections up to 2070:

• Under CPS:
  • Renewable share in generation is expected to increase from 20% (2024-25) to over 80% (2070). The respective share of coal and nuclear will be: coal share [74% → 6–10%], and nuclear [3% → 5–8%].
  • Coal capacity may rise from 268 GW (2025) to peak at 450–470 GW by 2050, and gradually decline afterward.
• Under NZS:
  • Coal-based generation could fall to zero by 2070, and coal capacity may peak earlier at 420–435 GW by 2045, and decline sharply thereafter.
  • Renewables become the dominant backbone of the grid.

Massive Storage Expansion Required:

• A renewables-heavy grid demands unprecedented storage capacity.
• Battery Energy Storage Systems (BESS) to scale up from less than 50 GW in 2030 to about 1,300-1,400 GW under CPS and up to 2,500-3,000 GW under NZS by 2070.
• Pumped Storage Plants are also expected to play a crucial role in providing long-duration storage and grid stability, growing from 13-19 GW in 2030 to about 110 GW in CPS and 150-165 GW in NZS.
• Storage becomes central to grid reliability, load balancing, and round-the-clock power supply.

Nuclear Power as Strategic Pillar:

• Targets:
  • The study identifies nuclear energy as crucial in a renewable-dominated grid.
  • It projects nuclear power capacity to grow from the current 8.18 GW in 2025 to 90-135 GW by 2070 under CPS — an increase of 10 to 15 times.
  • Under the NZS, nuclear capacity could touch 295-320 GW.
• Key roles of nuclear energy:
  • Firm low-carbon base-load power
  • Industrial high-temperature heat
  • Power supply for green hydrogen electrolyzers
  • Grid balancing support
• The report recommends:
  • Advanced reactors
  • Small Modular Reactors (SMRs)
  • Transition of captive coal plants to SMRs. This helps reuse existing land, transmission connectivity, and industrial infrastructure.

Coal’s Continuing Role in Transition:

• Despite the clean energy push, coal remains indispensable in the near to medium term because storage remains expensive; nuclear projects have high capital cost, long gestation period; and renewables face land and clearance challenges.
• In some pathways, coal continues even in 2070 with deep decarbonisation via:
  • CCUS: Captures CO₂ from coal plants. Stores underground or reuses it. Prevents atmospheric emissions.
  • This pathway becomes relevant if nuclear expansion slows, renewable deployment faces cost or grid barriers.

Alternative Pathway Risks:

• If nuclear growth remains limited, solar capacity may need to exceed 5,500 GW, storage requirements would rise dramatically, and grid stability risks would intensify.
• This creates financial stress, infrastructure bottlenecks, and land acquisition challenges

Challenges and Way Forward:

• Intermittency of renewables: Rapid scale-up of BESS and Pumped Storage. Improve market mechanisms for flexible dispatch.
• High storage costs: Develop domestic manufacturing ecosystem for storage technologies. Promote CCUS research and pilot deployment.
• Grid infrastructure inadequacy: Accelerate grid modernization and transmission expansion.
• Nuclear capital intensity: Fast-track nuclear expansion including SMRs. Encourage industrial shift to nuclear-based captive power.
• Managing stranded coal assets: Strategic planning to avoid stranded coal assets.

Conclusion:

• India’s electricity transition will not be a simple coal-to-solar swap. It will require a carefully calibrated mix of renewables, storage, nuclear expansion, grid reform, and transitional coal support.
• Coal may remain the backbone in the medium term, but by 2070, renewables — supported by large-scale storage and nuclear power — could decisively reshape India’s energy architecture.
• The real challenge lies not in installing capacity, but in ensuring reliability, flexibility, affordability, and system stability in a net-zero compatible electricity grid.

Why in the News?

• The U.S.-Bangladesh reciprocal trade agreement, granting zero reciprocal tariffs on select apparel, has triggered concerns for Indian textile exporters.

What’s in Today’s Article?

• US-Bangladesh Deal (Background, Bangladesh’s Textile Industry, etc.)
• India’s Exposure (Cotton Trade with US, Trade Dynamics, Key Concerns, etc.)

Background of the U.S.-Bangladesh Textile Deal

• The United States has agreed to establish a mechanism under which certain textile and apparel goods from Bangladesh will receive a zero reciprocal tariff rate.
• However, this benefit is conditional. The zero reciprocal tariff will apply only to a specified volume of imports and will be linked to the use of U.S.-produced cotton and man-made fibre (MMF) textile inputs.
• This development is significant because Bangladesh is one of the largest exporters of garments to the U.S., competing directly with India, China, and Vietnam.

Structure of Bangladesh’s Textile Industry

• Bangladesh exported garments worth $50.9 billion globally in 2024, with $7.4 billion going to the U.S.
• Its industry model is heavily dependent on imported textile inputs. In 2024, Bangladesh imported textile inputs worth $16.1 billion, of which $3.1 billion came from India.
• Bangladesh imports around 85 lakh bales of cotton annually from Brazil, India, and African countries. India alone exported 12-14 lakh bales of cotton and $1.47 billion worth of cotton yarn to Bangladesh in 2024-25.
• This indicates that Bangladesh’s garment exports are deeply integrated with Indian raw material supply chains.

India’s Exposure to the U.S. Market

• India exports approximately $16 billion worth of garments annually, with nearly one-third going to the U.S.
• Both India and Bangladesh primarily produce cotton-based apparel. Therefore, any preferential access granted to Bangladesh directly affects Indian exporters competing in the same market segment.
• Currently, Indian goods face an 18% reciprocal tariff in the U.S., while Bangladeshi goods will face 19%, reduced from 20%.
• Thus, the tariff differential between India and Bangladesh has narrowed significantly.

India-U.S. Cotton Trade

• India imports around five lakh bales of U.S. cotton annually, including 2.5 lakh bales of extra-long staple (ELS) cotton such as American PIMA.
• India levies an 11% import duty on cotton, except for ELS cotton. Indian mills are already nominated by American brands to supply yarn made from U.S. cotton.
• The Union Commerce Ministry has stated that Indian garment exporters will receive similar access benefits to the U.S. market as Bangladesh.
• However, operational clarity on this promise is still awaited.

Possible Shift in Trade Dynamics

• Bangladesh may replace Indian cotton with U.S.-produced cotton to qualify for zero reciprocal tariffs.
• If this happens, the immediate impact will be on Indian cotton and yarn exporters supplying Bangladesh.
• However, analysts note that over 63% of Bangladesh’s garment exports go to the European Union duty-free.
• Since its supply chains are oriented toward European buyers, restructuring production to use U.S. cotton may require significant investment in spinning and fabric processing capacity.

Key Concerns for Indian Exporters

• Several practical concerns remain:

• Whether India will waive the 11% import duty on U.S. cotton to ensure competitiveness?
• How the U.S. will determine the quantity of U.S. cotton content in garments?
• Whether increased demand will push up U.S. cotton prices, reducing cost competitiveness?
• Whether benefits apply only to reciprocal tariffs or also to basic duties?

• Both India and Bangladesh exporters will get relief only from the reciprocal tariff if they use U.S. cotton, not from the basic duty.
• If U.S. cotton becomes expensive due to higher demand, garments made from it may not remain competitive compared to those made from cheaper global cotton.

Broader Strategic Implications

• The development highlights three structural issues:

• Growing importance of rules-of-origin conditions in trade agreements.
• Increasing integration of trade with supply-chain geopolitics.
• Need for India to align domestic tariff policy with export competitiveness.

• India’s textile industry is the largest employment generator after agriculture.
• Hence, any shift in global trade patterns has serious economic and employment implications.

About Phoenicia:

• Phoenicia was an ancient region at the eastern end of the Mediterranean Sea.
• It covered the land where the present day Lebanon is located.
• The Phoenicians lived on the seacoast and were skilled shipbuilders and navigators.
• Their trade routes reached as far as Spain and the British Isles.
• The Phoenicians traded wood, linen, dyes, and wine.
• They also carved wood and ivory and worked with metals and glass.
• The art of glassblowing was probably invented in Phoenicia.
• The Phoenician alphabet was the source of the Greek alphabet and of the Latin alphabet, which most people use today.
• They built the cities of Sidon, Tyre, and Berot (modern Beirut).
• The Phoenicians set up colonies all around the Mediterranean. Carthage, in North Africa, was a very successful colony.
• Decline:
  • Over the centuries a number of foreign powers controlled all or parts of Phoenicia. They included Egypt, Assyria, Babylonia, and Persia.
  • The Macedonians, led by Alexander the Great, conquered Phoenicia in 332 BCE.
  • In 64 BCE Phoenicia became a part of the Roman Empire.

About Bhadra Tiger Reserve:

• It is located in Karnataka.
• The habitat has a good population of elephants and is also an Elephant Reserve.
• It is drained by the river Bhadra and its tributaries.
• Vegetation: It has dry-deciduous, moist-deciduous, shola, and semi-evergreen patches.
• Flora: Teak, Rosewood, Mathi, Honne, Nandi and many medicinal plants, etc.
• Fauna:
  • Tiger, Leopard, Leopard cat, Dholes, Indian Civet, ungulates like Gaur, Sambar, and Barking Deer are common.

About Lead Bank Scheme (LBS):

• On the recommendations of the Nariman committee, the LBS was introduced by the Reserve Bank of India in 1969.
• Aim: Coordinating the activities of banks and other developmental agencies in order to achieve the objective of enhancing the flow of bank finance to the priority sector and other sectors and to promote banks' role in the overall development of the rural sector
• For coordinating the activities in the district, a particular bank is assigned ‘Lead Bank’ responsibility of the district.
• The Lead Bank is expected to assume a leadership role for coordinating the efforts of the credit institutions and the Government.
• For the preparation of District Credit Plans and monitoring their implementation, a Lead bank Officer (LBO), now designated as Lead District Manager was appointed in 1979.

About Chennakeshava Temple:

• The Chennakeshava Temple, also referred to as the Keshava, or Vijayanarayana Temple of Belur, is a 12th-century temple in Karnataka.
• It is a Hindu temple dedicated to Lord Vishnu.
• It was commissioned by King Vishnuvardhana in 1117 CE (after a major military victory in 1116 CE over the Cholas in the great battle of Talakkad), on the banks of the Yagachi River in Belur, also known as Velapura.
• The temple is listed as a UNESCO World Heritage Site.
• Architecture:
  • It is a stunning example of Hoysala architecture.
  • The Hoysalas used soft soapstone for their structures, as they were found suitable for intricate carvings.
  • Enclosed by a Prakara with a Gopura built in the Vijayanagar style, the temple stands on a platform, or Jagati, and looks like a huge casket.
  • The outer walls of the temple are adorned with intricate carvings, which depict various gods, goddesses, and mythical creatures.
  • There are Madanika sculptures in the temple, dancing, hunting, standing under canopies of trees.
  • One of the unique features of the Chennakeshava Temple is the stepped well, which is located in the temple complex.