Current Affairs 03 September 2025

Content

1. Decoding the SC order on regulatory assets
2. On call 24/7: a spotlight on gig workers who are running the new economy
3. Made in India Vikram Processor and Semicon India 2025
4. How dead birds, old maps are helping scientists track biodiversity loss
5. Why do women in India face higher cancer incidence but lower mortality than men?
6. Odisha’s ‘Dongar’ cultivation in danger

 Decoding the SC order on regulatory assets

Basics

• DISCOMs (Distribution Companies):
  State-run/private companies responsible for last-mile electricity distribution to consumers.
• Annual Revenue Requirement (ARR):
  • Total revenue DISCOMs are allowed to recover through tariffs + government subsidies.
  • Reflects approved expenditure (power purchase, O&M, interest, depreciation, return on equity).
• Average Cost of Supply (ACS):
  • Actual cost incurred by DISCOMs to supply one unit of electricity to consumers.
  • Includes cost of buying power, transmission, distribution losses, etc.
• ACS-ARR Gap:
  • If ACS > ARR, DISCOM makes a loss per unit supplied.
  • Causes financial stress since revenue ≠ cost.
• Regulatory Asset (RA):
  • Mechanism to defer recovery of revenue gap.
  • SERCs allow DISCOMs to record unrecovered costs as “regulatory assets” instead of immediately increasing tariffs.
  • Costs deferred for recovery in future years (with interest).

Relevance:

• GS II (Polity & Governance – Role of Judiciary in enforcing financial discipline)
• GS III (Economy – Infrastructure: Power sector, Distribution reforms, Subsidy management, Tariff rationalisation)

Supreme Court Order (2025)

• Existing regulatory assets to be cleared within 4 years.
• New regulatory assets must be liquidated within 3 years.
• Cap: RA ≤ 3% of a DISCOM’s ARR.
• Transparent recovery roadmaps to be prepared by SERCs.
• Intensive audits for DISCOMs failing to recover assets.

Why ACS-ARR Gap Persists?

• Non-cost reflective tariffs: Populist policies keep tariffs artificially low.
• Delayed subsidies: States delay subsidy transfers for agriculture/BPL households.
• Rising input costs: Sudden hikes in coal/gas prices increase power purchase costs.
• Technical & commercial losses: Theft, billing inefficiencies, high AT&C losses.

Impact of Regulatory Assets

• Short-term benefit: Tariffs don’t rise sharply, consumers shielded temporarily.
• Long-term burden: Deferred costs accumulate → future tariff shocks.
• Carrying cost (interest): Consumers ultimately pay higher than original gap.
• Cash flow stress: DISCOMs can’t pay power generators on time → risk of load shedding.
• Debt trap: DISCOMs borrow to bridge gap → rising liabilities.
• Modernisation impact: Funds locked in unrecovered costs → less investment in smart grids, renewable integration, and consumer services.

Examples

• Punjab (2003-04): First RA created (₹487 crore gap, ₹150 crore deferred).
• Delhi (2024-25):
  • BSES Rajdhani: ₹36,057 crore RA.
  • BSES Yamuna: ₹22,040 crore RA.
  • Tata Power Delhi: ₹8,226 crore gap.
• Tamil Nadu (2021-22): ₹89,375 crore RA → systemic stress.

Consumer Impact

• Example: Delhi DISCOMs need to recover ₹16,580 crore annually within 4 years.
• With 30 billion units consumed annually, tariff hike ≈ ₹5.5/unit if immediate recovery attempted.
• Hence RAs are used, but deferred hikes become steeper over time.

Way Forward

1. Tariff Rationalisation:
   1. Tariffs must reflect actual cost.
   1. Targeted subsidies for vulnerable consumers (DBT model).
2. Timely Subsidy Payments:
   1. States should release subsidies on time → prevent revenue gap.
3. Automatic Cost Pass-through:
   1. Mechanisms like Fuel & Power Purchase Cost Adjustment (FPPCA) allow quick tariff revision with fuel cost changes.
4. Annual True-up Exercises:
   1. Regular reconciliation of projected vs. actual costs to avoid backlog.
5. Financial Discipline:
   1. SERCs must enforce strict RA caps.
   1. DISCOMs must cut AT&C losses and improve billing efficiency.
6. Grid Modernisation Financing:
   1. Ring-fence funds for grid upgrades, smart meters, and renewable integration separate from RA recovery.
7. Judicial Oversight:
   1. SC’s intervention acts as a disciplinary push for States, regulators, and DISCOMs.

On call 24/7: a spotlight on gig workers who are running the new economy

Basics

• Gig Economy: A labour market characterised by short-term, contract-based, or freelance work mediated largely through digital platforms.
• Examples: Food delivery (Swiggy, Zomato), cab services (Uber, Ola), e-commerce delivery (Amazon, Flipkart), freelance IT/creative work.
• Scale:
  • 7.7 million workers (2020–21) → projected 23.5 million by 2029–30 (NITI Aayog, 2022).
  • India’s digital economy projected at $1 trillion in the next five years.

Relevance:

• GS II (Polity & Governance – Welfare schemes, Social security, Labour laws, Rights of workers)
• GS III (Economy – Employment trends, Informal sector, Digital economy, Future of work)
• GS I (Society – Changing urban lifestyles, Consumerism, Inequality)
• Essay/Case Study (Ethics & Society – Human dignity, Invisible labour, Tech-driven inequality)

Opportunities Created

• Job Creation: Provides income opportunities to millions, especially youth, migrants, and semi-skilled workers.
• Flexibility: Workers can choose working hours, multiple platforms, and supplement income.
• Consumer Convenience: Rapid service delivery (cabs, food, groceries) transforming lifestyles.
• Digital Inclusion: Entry point into the formal digital economy for low-skill workers.
• Post-COVID Acceleration: Pandemic pushed adoption of digital platforms and AI-enabled gig work.

Challenges for Workers

• Precarity & Insecurity: No fixed wages, job security, or guaranteed hours.
• Low Wages: Long hours for meagre earnings; often below minimum wage equivalents.
• Algorithmic Control: Workers are monitored, incentivised, and penalised by opaque algorithms.
• Lack of Social Security: No health insurance, pensions, paid leave, or accident coverage by default.
• Psychological Stress: Pressure to meet delivery targets; isolation and lack of worker identity.
• Exploitation of Aspirations: Platforms market “flexibility” but often trap workers in exploitative cycles.

Broader Social Implications

• Consumerism Boom: Instant delivery culture fuels demand but erodes human connection (faceless delivery).
• Urban Culture Shift: Traditional vendor-customer relationships replaced by impersonal transactions.
• Income Disparity: Platform owners earn exponentially compared to gig workers.
• Invisible Labour: Consumers rarely acknowledge or engage with delivery workers’ struggles.

Policy & Legal Dimensions

• Lack of Recognition: Gig workers often not categorised as “employees” under labour law.
• Social Security Code, 2020: First attempt to extend protections (like provident fund, insurance) to gig/platform workers, but implementation remains weak.
• State Responses:
  • Rajasthan Gig Workers Welfare Act, 2023 – world’s first legislation creating a welfare fund for gig workers.
  • Other states exploring welfare boards and data-sharing obligations for platforms.
• Unionisation & Resistance: Increasing strikes and protests by delivery and cab drivers demanding fair wages and social security.

Literary & Cultural Reflections

• Film – Zwigato (2022): Captures life of food delivery workers – insecurity, pressure, family struggles.
• Books:
  • OTP Please (2025) – Voices of gig workers across South Asia, consumerism critique.
  • Gig Economy in India Rising (2020) – Gig work as future of jobs, flexible but precarious.
  • The Gig Economy in India (2025, Pradip Thomas) – Examines State–entrepreneur–platform dynamics.
  • Global works (Gigged 2018, The Gig Economy 2019) – highlight precarity and future of work debates.

Way Forward

• Formalisation with Flexibility: Recognise gig workers as a distinct labour category with rights.
• Social Security Framework: Mandatory health, accident, and pension coverage funded jointly by platforms and governments.
• Algorithmic Transparency: Platforms must disclose rating, payment, and penalty systems.
• Collective Bargaining: Encourage unions and digital worker associations.
• Consumer Awareness: Build empathy and responsibility among users of gig services.
• Long-Term Reform: Integrate gig workers into labour codes, welfare boards, and skilling initiatives.

Made in India Vikram Processor and Semicon India 2025

Basics

• Event: Semicon India 2025 (annual semiconductor conference).
• Highlight: Union IT Minister Ashwini Vaishnaw presented PM Modi a ‘Made in India’ Vikram 32-bit Processor Launch Vehicle Grade chip.
• Developers:
  • Vikram Sarabhai Space Centre (VSSC), ISRO.
  • Semiconductor Laboratory (SCL), Chandigarh.
• Legacy: Upgraded version of VIKRAM1601 (16-bit processor), used in ISRO launch vehicle avionics since 2009.

Relevance:

• GS III (Science & Tech – Indigenisation of technology, Semiconductor industry, ISRO achievements, Atmanirbhar Bharat in high-tech)
• GS II (Governance – Industrial policy, Public–private–academia partnerships)
• GS III (Economy – Strategic industries, Electronics manufacturing, Supply chain resilience)
• Essay/IR (Geopolitics – Semiconductor wars, India as alternative hub vs Taiwan/China/US)

About the Vikram 32-bit Processor

• Category: Launch Vehicle Grade Microprocessor.
• Function: Used in avionics systems of ISRO’s launch vehicles.
• Upgradation: From 16-bit (VIKRAM1601) → to 32-bit (higher processing power, reliability, and efficiency).
• Significance:
  • Enhances self-reliance in critical semiconductor technology.
  • Reduces dependence on foreign aerospace-grade processors.
  • Boosts India’s space missions (efficiency, safety, speed).

Academic & R&D Collaboration

• Memento also included 31 prototype chips developed by academic institutions:
  • IIT Jammu, IIT Roorkee, IIT Dhanbad, NIT Durgapur, NIT Calicut, IIT Ropar, etc.
• Reflects strong academia–industry–government collaboration in semiconductor R&D.

India’s Semiconductor Push

• Five Semiconductor Units: Under construction rapidly.
  • One pilot line already completed.
  • Two more to start production in coming months.
• Policy Framework:
  • Stable, investor-friendly semiconductor policies.
  • Focus on covering design, fabrication, packaging, and supply chain.
• Pitch to Global Players: India projected as manufacturing hub amidst global supply chain uncertainties.

Strategic Significance

• National Security:
  • Semiconductor self-sufficiency reduces vulnerability to supply chain shocks.
  • Critical for defence, space, telecom, and AI systems.
• Economic Growth:
  • Semiconductor industry projected as foundational for India’s $10 trillion economy target.
  • Creates high-tech jobs and skilling opportunities.
• Geopolitics:
  • In a world dominated by Taiwan, South Korea, U.S., and China in semiconductors → India positioning itself as an alternative hub.

Challenges

• High Capital Requirement: Semiconductor fabs need billions of dollars in investment.
• Global Competition: Taiwan (TSMC), South Korea (Samsung), U.S. (Intel), and China’s state-led push.
• Supply Chain Dependence: Raw materials, advanced lithography machinery (ASML, Netherlands) still external.
• Technology Catch-up: India is a late entrant compared to decades of global R&D.

How dead birds, old maps are helping scientists track biodiversity loss

Basics

• Nilgiri Mountains: Part of Western Ghats → a global biodiversity hotspot, rich in endemic species (Nilgiri pipit, Nilgiri sholakili, Nilgiri laughingthrush).
• Biodiversity Monitoring Challenge: Current field studies show only a “snapshot”; long-term biodiversity loss requires historical baseline comparisons.
• Role of Museums & Archives: Preserve old specimens, maps, and notes → crucial for studying species decline, habitat change, and climate impacts.

Relevance:

• GS III (Environment – Biodiversity conservation, Habitat loss, Climate change impact, Grassland ecology)
• GS I (Geography – Human–environment interaction, Land-use change, Western Ghats ecosystems)
• GS I (History – Colonial records as scientific resources, Museums as repositories)
• Essay (Heritage & Ecology – Role of archives, science–society linkage in conservation)

The Study (Vijay Ramesh et al., Global Change Biology, 2025)

• Data Sources:
  • Bird specimens from British-era natural history museums (late 1800s).
  • Old land-use maps (e.g., Captain John Ouchterlony’s 1848 Nilgiri land-cover map).
  • Contemporary field surveys across 42 sites.
  • Modern satellite imagery.
• Methodology:
  • Digitisation of historical museum specimens + maps.
  • GIS-based land-use change analysis (1848–2018).
  • Bayesian statistical tool (FAMA – field abundance–museum abundance) → estimated species’ relative abundance.

Key Findings

• Grassland Decline:
  • 80% reduction → from 993 sq. km (1848) → 201 sq. km (2018).
  • Grassland birds most affected: Nilgiri pipit, Malabar lark.
  • 90% decline in relative abundance of grassland birds.
• Forest Birds Stability:
  • 53% of forest bird species showed stable populations.
  • Reason: Grasslands converted into wooded forests (plantations + invasive woody species).
  • Indicates habitat “substitution” but not genuine conservation.
• Conservation Blind Spot:
  • Grasslands not recognised as critical ecosystems.
  • Policies & public perception focus on “forests” and tree planting → inadvertently harm grasslands.

Significance of Museums in Conservation

• Functions:
  • Preserve historical records of species distribution & abundance.
  • Aid taxonomy & species identification.
  • Enable studies on long-term ecological changes (migration, size shifts, community collapse).
  • Baseline data for conservation planning.
• Examples:
  • Dead birds collected 150 years ago → now key evidence of species decline.
  • Old maps digitised → show land-cover shifts invisible in short-term monitoring.

Challenges

• Access Issues:
  • Most collections in Western museums (colonial legacy).
  • High costs, visa barriers for Indian researchers.
• Institutional Barriers:
  • Lack of digitisation in Indian archives.
  • Funding constraints & bureaucratic hurdles.
• Ethical Concerns:
  • Specimens collected from India but housed abroad → question of ownership & repatriation.

Broader Ecological Insights

• Grassland Neglect: Seen as “wastelands” → converted into plantations, agriculture, or urban land.
• Historical Baselines: Essential to understand true extent of biodiversity loss (short-term data underestimates decline).
• Climate Change Link: Land-use change + temperature rise → shift in ecosystems, pushing species to edge of survival.

Why do women in India face higher cancer incidence but lower mortality than men?

Understanding Cancer Incidence & Mortality

• Incidence: Number of new cancer cases diagnosed in a population during a specific time period.
• Mortality: Number of deaths due to cancer in the same period.
• Crude Incidence Rate (CIR): New cancer cases per 100,000 population.
• Age-Adjusted Incidence Rate (AAIR): Statistical measure adjusted for differences in age distribution across populations (older populations naturally have more cancer cases).

Relevance:

• GS II (Health – Public health, Disease burden, Cancer screening, Gendered healthcare inequality)
• GS I (Society – Gender issues, Women’s health & nutrition, Patriarchy in healthcare access)
• GS III (Science & Tech – Preventive healthcare, Vaccination, Epidemiology)
• Essay/Case Study (Ethics – Healthcare equity, Gender justice, Lifestyle diseases)

Current Trends in India (2015–2019, PBCR Data)

• Incidence:
  • Women: 51.1% of cases (≈700,000 cases).
  • Men: 48.9%.
• Mortality:
  • Men: 55% of cancer deaths.
  • Women: 45%.
• Most common cancers:
  • Women: Breast, cervical, ovarian.
  • Men: Oral, lung, prostate.
• Regional hotspot: Northeast India (Aizawl, Kamrup Urban, Papumpare, East Khasi Hills).

Why Women Face Higher Cancer Incidence

1. Biological & Reproductive Factors
   1. Hormonal exposure (estrogen, progesterone) → breast & ovarian cancer risk.
   1. Delayed childbirth, fewer pregnancies, reduced breastfeeding.
   1. Menstrual/reproductive patterns linked to higher hormone exposure.
2. Lifestyle & Environmental Changes
   1. Sedentary lifestyle, obesity, poor diet (processed foods, low fibre).
   1. Alcohol & tobacco use rising among women.
   1. Pollutants in air, chemicals in cosmetics, pesticides, processed foods → hormone-related cancers.
3. Occupational & Social Risks
   1. Entry into workforce (exposure to chemicals, night shifts).
   1. Greater susceptibility to infections (e.g., HPV for cervical cancer).
   1. Gender inequality → poor nutrition, limited screening access, lower economic parity.

Why Women Have Lower Cancer Mortality

1. Nature of Predominant Cancers
   1. Breast & cervical cancers → relatively higher survival rates if detected early.
   1. Breast cancer: 5-year survival >90% (early diagnosis, treatment).
   1. Cervical cancer: Preventable via HPV vaccination, detectable through Pap smears.
   1. In contrast, men’s cancers (oral, lung, liver) are highly aggressive with poor survival outcomes.
2. Awareness & Screening
   1. Large-scale campaigns for breast & cervical screening.
   1. HPV vaccination drives (though limited) improving survival chances.
   1. Women’s reproductive health often a focus in public health interventions.
3. Behavioral Factors
   1. Men have higher tobacco & alcohol use → aggressive cancers + late diagnosis.
   1. Men less likely to seek preventive healthcare compared to women.

Why Women’s Mortality is Rising Faster Now

• Healthcare Gaps: Late-stage diagnosis, poor rural access to oncology facilities.
• Socioeconomic Barriers: Costs of treatment, patriarchal decision-making limiting healthcare spending on women.
• Misdiagnosis & Delays: Symptoms ignored, stigma around breast/cervical exams.
• Double Burden: Women face biological susceptibility + structural neglect.
• Trend Projection: Over the next 2 decades, female cancer deaths projected to rise faster than men’s (Lancet 2025).

Key Takeaways

• Higher Incidence: Women more exposed to reproductive, hormonal, and lifestyle-linked risk factors.
• Lower Mortality (Currently): Women’s cancers more survivable with early detection, while men’s cancers (oral/lung) have poor outcomes.
• Alarming Trend: Mortality among women is rising quickly due to healthcare inequality, misdiagnosis, and changing lifestyles.
• Policy Priority:
  • Expand HPV vaccination & cervical screening.
  • Tackle environmental pollutants & unsafe cosmetics.
  • Integrate cancer detection in primary health systems.
  • Address gender bias in healthcare access & affordability.

Odisha’s ‘Dongar’ cultivation in danger

Dongar Cultivation

• Meaning: Dongar = traditional upland/mountain slope farming system of the Kondh tribes in Odisha.
• Method: Mixed cropping of millets, pulses, oilseeds, tubers → ensures food diversity, nutrition, and ecological balance.
• Parallels: Similar to bewar system in Madhya Pradesh’s Dindori district.
• Tools: No ploughing, only hand tools; fully organic; depends on seed exchange and community labour.
• Significance:
  • Climate-resilient system.
  • Ensures food sovereignty and cultural identity of Kondh tribes.
  • Maintains biodiversity and soil health.

Relevance:

• GS I (Geography – Traditional farming systems, Agro-ecology, Millets, Shifting cultivation parallels)
• GS III (Environment – Sustainable agriculture, Biodiversity conservation, Climate-resilient farming)
• GS I (Society – Tribal livelihoods, Culture, Food security, Nutrition)

Rise of Eucalyptus Monoculture in Rayagada

• Agents: Outsiders linked to paper mills (mainly from southern states).
• Strategy:
  • Leasing tribal lands for eucalyptus plantations.
  • Providing seedlings, fertilisers, and easy loans.
  • Buy-back arrangements ensure assured market.
• Spread: From lowlands → midlands → uplands (dongar areas).
• Economics: Farmers get only ₹1,500–₹3,000 per acre annually when leasing land, much below food/fodder value.
• Attractiveness: Eucalyptus is low-maintenance, grows in 5 years, requires little care compared to millet/pulse farming.

Problems of Eucalyptus Monoculture

1. Food Security & Nutrition Loss
   1. Reduces cultivation of millets, pulses, tubers.
   1. Forces dependence on PDS rice + tamarind, leading to loss of nutrition.
   1. Decline in tribal food diversity and seed heritage.
2. Ecological Impacts
   1. Soil Infertility: Eucalyptus depletes nutrients, reduces fertility.
   1. Water Stress: High water absorption → groundwater depletion.
   1. Biodiversity Decline: Birds, tubers, and natural foods vanish in eucalyptus areas.
   1. Monocultures worsen vulnerability to climate change.
3. Economic & Social Issues
   1. Meagre lease incomes compared to livelihood losses.
   1. Landowners prefer leasing to mills rather than to tribal farmers → tribals lose access to land.
   1. Tribal youth shifting away from dongar → cultural erosion.

Resistance & Revival Efforts

• Living Farms NGO:
  • Active in ~200 villages.
  • Working with Talia Kondhs & Kutia Kondhs.
  • Promoting awareness drives on climate-resilient dongar farming.
  • Reviving seed conservation and organic methods.
  • Encouraging rejection of chemicals, revival of labour exchange practices.
• Community Role:
  • Women and elders sharing traditional farming knowledge.
  • Farmers experimenting with millet revival (ragi, maize) against cotton and eucalyptus.

Broader Context

• Millets in Danger: Despite 2023 being International Year of Millets, upland millet cultivation is collapsing under eucalyptus + BT cotton pressure.
• Climate Change Lens: Studies show monoculture plantations (perennials) more vulnerable to climate change than mixed cropping.
• Policy Vacuum:
  • No strict restrictions on plantation companies leasing tribal land.
  • Easy credit for eucalyptus vs neglect of millet promotion.
  • Weak extension services for traditional crops.

Key Takeaways

• Eucalyptus monoculture = short-term commercial profit but long-term loss of food security, ecology, and tribal identity.
• Dongar = climate-smart, biodiversity-rich, nutrition-sustaining farming system → must be revived.
• Solution Pathways:
  • Strengthen millet promotion schemes (link with MSP, PDS).
  • Provide institutional credit for dongar farming.
  • Legal safeguards against exploitative land leasing.
  • Promote seed banks, community-based conservation, and youth involvement.
  • Recognise dongar as a model of climate-resilient tribal agroecology.