Current Affairs – July 20, 2026

{GS2 – IR} India’s Push to Renegotiate Indus Waters Treaty **

• Context (IE): India’s formal notice to Pakistan to initiate negotiations for modifying the Indus Waters Treaty reflects evolving geopolitical, demographic, and climate-driven water realities.

Issues with the Indus Water Treaty

• Agrarian Shortfall: Allocating 80% of the total annual flow of 168 million acre-feet to Pakistan restricts India’s agricultural expansion across the divided basin.
• Aquifer Depletion: The omission of shared transboundary aquifers from the agreement leaves the Indus basin as the world’s second-most overstressed groundwater system.
• Jurisdictional Collision: Article IX’s failure to establish a clear hierarchy allows the World Bank to appoint both a Neutral Expert and a Court of Arbitration for the Kishanganga and Ratle projects.
• Drought Vulnerability: The absence of a mathematical deficit-sharing formula forces ad hoc downstream water rationing during periods of below-normal Himalayan glacial melt.
• Ecological Starvation: Diverting over 90% of the basin’s allotted flow for human and economic use leaves no water to maintain minimum riverine environmental flows.

India’s Arguments for Treaty Amendment

• Demographic Overload: A basin population surge from 50 million in 1960 to over 300 million today forces a fundamental shift in resource doctrines to revise outdated historical quotas.
• Security Breach: State-sponsored cross-border terrorism undermines the baseline trust required for water sharing, necessitating a formal overhaul under Article XII (3).
• Customary Alignment: The transition towards needs-based distribution requires an amendment to the rigid geographic partition to enable the equitable utilisation of the 1997 UN Watercourses Convention.
• Forecast Modernisation: Accurate downstream flood warning requires an overhaul of Article VI’s delayed monthly data exchange to mandate real-time digital telemetry.
• Resolution Gridlock: The simultaneous activation of two separate dispute forums breaches the sequential hierarchy and risks conflicting international rulings on identical technical parameters.

Recommendations of Standing Committee on Water Resources (2021)

• Climate Renegotiation: Renegotiate the 1960 text to establish a bilateral legislative framework addressing climate change, glacial melt, and contemporary environmental impact assessments.
• Project Acceleration: Expedite the stalled Ujh and Shahpurkandi dam projects to halt the historical flow of unused Ravi River water into Pakistan.
• Canal Rehabilitation: Repair the ageing Rajasthan and Sirhind Feeder networks to restore their maximum carrying capacity for allocations routed through the Harike Barrage.
• Western Utilisation: Maximise permissible irrigation and run-of-the-river hydro infrastructure on the Indus, Jhelum, and Chenab to fully assert India’s rights to non-consumptive use.

Read More> Indus Water Treaty

{GS2 – IR – Bilateral Relations} India Amends Tax Treaty with Sri Lanka

• Context (IE): India has amended its Double Taxation Avoidance Agreement (DTAA) with Sri Lanka by incorporating the Principal Purpose Test (PPT).

• The PPT is an internationally accepted anti-abuse provision recommended under the OECD BEPS framework. Under the PPT, treaty benefits can be denied if a company creates an investment structure mainly to reduce taxes rather than undertake genuine business activities.

Key Highlights

• Aim: To eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance through treaty-shopping arrangements.
• The amendment incorporates mandated changes under the OECD’s Multilateral Instrument (MLI).
  • The MLI is a mechanism designed to swiftly update thousands of bilateral tax treaties worldwide to implement BEPS countermeasures.
  • While India adopted the MLI (which entered into force for India on October 1, 2019) to automatically update most of its DTAAs, it updates treaties with certain countries (like Chile, Iran, Hong Kong, China, and now Sri Lanka) via bilateral protocols.
• Implementation: The amended protocol came into force on 19 June 2026 and will apply in India to income earned from 1 April 2027 onwards.

Read More> Double Taxation Avoidance Agreement (DTAA)

{GS2 – MoSJE} Adarsh Gram Under PM-AJAY

• Context (PIB): Pradhan Mantri Adarsh Gram Yojana (PMAGY) has covered over 47,300 villages and declared over 16,700 of them as ‘Adarsh Grams’.
• PMAGY is a centrally sponsored scheme launched by the Ministry of Social Justice and Empowerment (MoSJE) in 2009–10 and integrated into the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY) under the “Adarsh Gram” component.
• Objective: Integrated development of Scheduled Caste (SC)-majority villages through the convergence of central and state programmes and flexible gap-filling funding.
• Eligibility: Villages with a total population of ≥ 500 people and an SC population of more than 40%.
• Funding: ₹20 lakh per village for infrastructure and projects, plus ₹1 lakh per village for administrative expenses, capacity building, and VDP creation.
• It monitors 50 socio-economic indicators across 10 sectors, including drinking water, sanitation, education, health, roads, housing, electricity, financial inclusion, and digitisation.

About PM-AJAY

• Launched by MoSJE in 2021–22, it is a centrally sponsored scheme for socio-economic upliftment, poverty reduction, and infrastructural development of SC communities.
• Three Components:
  1. Adarsh Gram: Holistically develops infrastructure in SC majority villages.
  2. Grants-in-Aid: Funds skill development and enterprise creation for SC households for SC households via a capital subsidy of up to ₹50,000 or 50% of asset cost, whichever is lower.
  3. Hostel Construction: Finances building and repair of residential facilities in government schools and NIRF-ranked institutions to reduce dropout rates.
• Digital Governance: PM-AJAY Portal and AJAY Mobile Application enable online planning, appraisal, fund tracking, beneficiary monitoring and geo-tagged reporting.

Read More > PM-AJAY

{GS2 – MSDE} PM-NAPS *

• Context (PIB): MSDE extended the Special Intervention under the Prime Minister’s National Apprenticeship Promotion Scheme (PM-NAPS) for the North-Eastern Region through FY 2026–27.

• PM-NAPS is a Central Sector Scheme under the Skill India Programme launched in 2016 to develop a highly skilled workforce through on-the-job training.
• Covers Designated Trades under the Apprentices Act, 1961, and industry-designed Optional Trades. Apprentices receive the National Apprenticeship Certificate (NAC) for Designated Trades and the Certificate of Proficiency (CoP) for Optional Trades.
• Implementing Agency: Directorate General of Training (DGT) for Designated Trades and National Skill Development Corporation (NSDC) for Optional Trades, under MSDE.

• Financial Support: Centre pays 25% of the stipend, capped at ₹1,500 monthly, while NER apprentices receive an additional ₹1,500 monthly.
  • Central stipend reimbursement is excluded for central and state government departments or public sector enterprises.

• Target Groups: ITI graduates, degree and diploma holders, and candidates completing short-term training under schemes such as PMKVY.

{GS3 – IE} VISHWAS 2026

• Context (PIB): EPFO under the Ministry of Labour and Employment launched VISHWAS, 2026 (Voluntary Initiative for Settlement of Historical and Welfare-Related Assessment and Settlement).

• VISHWAS is a one-time dispute-resolution initiative, active for 6 months, to resolve long-standing provident fund penalty cases digitally via the EPFO Employer Portal.
• Covers penalties under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020.
• Pre-14 June 2024 defaults attract reduced monthly rates of 0.25%, 0.50% or 1%, based on delay duration.
• Coverage Categories: Disputes pending before legal tribunals, pending or partial recoveries, issued notices awaiting final orders, and cases with unissued notices.
  • Excludes cases involving fraud, misappropriation of funds, deliberate falsification of records, fully recovered penalties, and cases with unpaid statutory interest.

{GS3 – IE} RBI’s Rules for Specified Non-Financial Assets (SNFA)

• Context (IE): RBI introduced Specified Non-Financial Assets (SNFA) rules to standardise the acquisition, valuation, management, and disposal of immovable property repossessed from defaulting borrowers.

• SNFAs are immovable properties, such as land, commercial buildings, or residential houses, that a bank repossesses from a defaulting borrower to recover unpaid loans.

Key Provisions of SNFA Rules

1. Lenders can take possession only after the borrower’s account is classified as a Non-Performing Asset (NPA). The transfer must settle the outstanding loan, in whole or in part.
2. Repossessed properties cannot be sold back to the original borrower or related parties. Lenders must liquidate them within seven years, primarily through public auctions.
3. Acquired properties are to be recorded at whichever value is lower: the net book value of the loan or the property’s distress sale value. Two independent external valuers will determine this distress value.
4. Repossessed properties will not count toward gross or net NPA metrics. They will appear under a separate head for ‘non-banking assets acquired in satisfaction of claims’.
5. Commercial banks must adopt a board-approved policy defining asset eligibility, approval workflows, and initial recovery efforts. All transactions are to be reported annually through the CIMS portal.

{GS3 – IS} National Anti-Doping Framework

• Context (PIB): Government of India officially notified the commencement of the National Anti-Doping Act, 2022, and the National Anti-Doping (Amendment) Act, 2025.

• Objective: Align India’s anti-doping framework with the World Anti-Doping Code and fulfil India’s obligations under the UNESCO International Convention against Doping in Sport.

Key Provisions of the Acts

• Statutory Authority: National Anti-Doping Agency (NADA) transitioned from a registered society into a statutory authority under the National Anti-Doping Act, 2022. The National Board for Anti-Doping in Sports oversees NADA and advises the central government.
• Strict Liability: Athletes bear absolute responsibility for any prohibited substance in their samples, irrespective of intent or fault. Support personnel, including coaches and trainers, face statutory liability for trafficking or administering prohibited substances.
• Adjudicatory Panels: The 2022 Act establishes a Disciplinary Panel to determine the consequences of anti-doping rule violations. National Anti-Doping Appeal Panel, chaired by a retired High Court judge, hears appeals against disciplinary decisions.
• Enforcement: Dope testing laboratories must obtain and maintain World Anti-Doping Agency accreditation. Authorised officers hold statutory powers of entry, search, and seizure upon reasonable suspicion.

Read More> Rising Doping Cases in India | Criminalising Doping Networks in India

{GS3 – S&T} India’s Private Space Ecosystem

• Context (PIB): Launch of Skyroot Aerospace’s Vikram-1, India’s first privately developed orbital rocket, has showcased India’s rising private space ecosystem.

Key Reforms Enabling Private Participation in India’s Space Sector

• Indian Space Policy 2023: Allows Non-Government Entities (NGEs) to take part across entire value chain.
• Single-Window Space Regulator: Indian National Space Promotion and Authorisation Centre (IN-SPACe) acts an autonomous single-window agency for space activities by Government and NGEs.
  • IN-SPACe facilitated USD 150 million investments into Indian space startups during CY 2025 (February 2026).
• Catalysing Private Investment:
  • IN-SPACe Seed Fund Scheme: Provides early-stage financial assistance to space startups and Micro and Small Enterprises offering grants of up to ₹1 crore to eligible applicants.
  • ₹1,000 crore Venture Capital (VC) Fund: Provides early-stage capital to promising startups over five years (FY 2025-26 to FY 2029-30) ranging between ₹100 crore and ₹250 crore.
  • ₹500 crore Technology Adoption Fund (TAF): Introduced by IN-SPACe, offers funding of up to 60% of project cost for startups and MSMEs; 40% of project cost for large industries. (Maximum Limit: ₹25 crore per project).
  • Commercialisation of India’s Space Programme: Indian Space Policy 2023 defined role of New Space India Limited (NSIL) as ISRO’s commercial arm.
    • As of July 2026, NSIL launched total of 141 satellites, including 138 international/customer satellites and 3 Indian satellites.
  • Liberalised FDI Policy for Space: Revised FDI policy permits up to 74% automatic FDI in satellite manufacturing and operations.
    • 49% automatic FDI in launch vehicles and spaceports, 100% automatic FDI in manufacturing of satellite components and subsystems.

Key Progress Made

• LVM3 Mission (2022): India’s first dedicated commercial mission launching 36 OneWeb satellites into Low Earth Orbit.
• Vikram-S (2022): Launched under Mission Prarambh as India’s first privately developed rocket and first private launch by IN-SPACe.
• Agnikul Cosmos (2024): First NGE to launch a rocket from India’s first private launch pad (‘Dhanush’) at Sriharikota demonstrating world’s first single-piece 3D-printed semi-cryogenic rocket engine.
• Earth Observation Satellite (EOS): IN-SPACe approved Public-Private Partnership for EOS constellation, led by Pixxel with Dhruva Space, SatSure Analytics India and Piersight Space.
• Indigenous Green Propulsion System: Demonstrated by Bellatrix Aerospace under DRDO’s Technology Development Fund.

Read More> India’s Space Economy

{Prelims – Geo} Manasbal Lake

• Context (TH): Manasbal Lake is witnessing ecological recovery, marked by the return of migratory birds.

• Manasbal Lake is a freshwater lake located in Ganderbal district, about 30 km north of Srinagar, Jammu & Kashmir. It is regarded as the deepest freshwater lake in India.
• The Mughal Garden, known as Jaroka (meaning bay window), built by Empress Nur Jahan, overlooks the lake.
• The lake drains into the Jhelum River through a regulated outflow channel.
• The lake is renowned for its lotus blooms (Nelumbo nucifera), which flourish along its periphery during the summer months. It is an important habitat for resident and migratory waterbirds, making it one of the major bird-watching sites in the Kashmir Valley.

{Prelims – IE} Investment Friendliness Index

• Context (PIB): NITI Aayog released a report on Investment Friendliness Index.

Key Highlights of the Index

• Purpose: It helps understand how well Indian states are positioned to attract investments.
• Coverage: Covers 28 states and 8 Union Territories (UTs).
• Parameters: Covers exhaustive list of 953 indicators compiled across Eight critical pillars.
  • Infrastructure, business climate, resources, government policy, regulatory ease, institutional environment, Financial Health, Environmental Resilience.
• Framework: 100-point scale serving as benchmark for states to improve their investment environment.
• Classification: Based on overall scores, States and UTs have been classified into four performance and three geographical categories.

• Current Ranking:

{Prelims – IS} Boss Scam

• Context (TH): Securities and Exchange Board of India (SEBI) issued a warning against Boss Scam after it received information ⁠from Indian Cyber Crime Coordination Centre ​of rising instances.

• In this case, fraudsters target ​finance executives and other employees through WhatsApp, Microsoft Teams and social media platforms posing as ​CEOs or senior executives instructing to transfer funds to accounts controlled by them.
• It also involves sending malware files to employees which on opening can hijack WhatsApp sessions or compromise ​devices ​instructing to make immediate payments ​to ⁠specified mule bank accounts.

Read More> Cybercrimes in India

{Prelims – PIN World} Mount Olympus

• Context (TOI): Mount Olympus has been nominated for inscription on the UNESCO World Heritage List as a Mixed Site, recognizing both its outstanding natural and cultural heritage.

• Mount Olympus is the highest mountain in Greece, with Mytikas (2,917.7 m) as its highest peak. It is located in northeastern Greece, on the border between the regions of Thessaly and Central Macedonia.
• In Greek mythology, Mount Olympus is regarded as the legendary abode of the Twelve Olympian Gods, led by Zeus.
• It was designated as Greece’s first National Park in 1938. In 1981, it was declared a UNESCO Biosphere Reserve due to its exceptional biodiversity, including numerous endemic plant and animal species.

{Prelims – S&T} Vikram-1: India’s First Private Orbital Rocket *

• Context (TH I IE): Vikram-1, the country’s first privately developed orbital launch vehicle, built by Hyderabad-based Skyroot Aerospace, was launched.

• The launch makes India the 3^rd country, after U.S. & China, to possess private-sector orbital launch capability.
• The mission, named “Aagaman” (Arrival), symbolizes the beginning of a new era where Indian private companies contribute to affordable and reliable access to space.

Key Features

• Vikram-1 is a four-stage, small satellite launch vehicle which placed satellites into Low Earth Orbit (LEO).
• It is built with an all-carbon composite structure, reliable solid-fuel boosters and a 3D-printed liquid engine.
• Capacity: It is designed to carry small satellites weighing up to 350 kg to Low Earth Orbit.
• Payloads: It deployed multiple payloads into LEO at an altitude of 450 kilometres. These include Skyroot’s SCOPE satellite, DCUBED’s technology demonstration payload, Grahaa Space’s SOLARAS S3 satellite, and Cosmoserve Space’s Embrace.
  • It also carries 2 symbolic payloads (Cosmic Bloom), a floral-shaped artwork, and an 18-karat gold micro-rocket. The micro-rocket features microscopic sculptures of C. V. Raman, Vikram Sarabhai and A. P. J. Abdul Kalam.

{Prelims – Misc} One Liners

• S&T – Kimi K3 (BS): Chinese AI startup Moonshot AI has unveiled Kimi K3, describing it as the world’s largest open-weight Artificial Intelligence (AI) model. The company claims that Kimi K3 delivers performance close to Anthropic’s frontier model “Fable”.
• S&T – MH-60R Seahawk (TH): The Indian Navy has received MH-60R Seahawk multi-role naval helicopter from the U.S.. It is among the world’s most advanced shipborne helicopters; it is designed primarily for anti-submarine and anti-surface warfare.