Polity: Rajasthan's Rajiv Gandhi Guaranteed Employment Bill was challenged in court; opposition parties argued it undermined MGNREGA's central guarantee.
Economy: The Insolvency and Bankruptcy Code committee recommended raising the operational creditor threshold from Rs 1 crore to Rs 5 crore.
International: India's External Affairs Minister met ASEAN counterparts in Jakarta; connectivity through Myanmar became the central concern.
Environment: Flamingo nesting in the Kutch Rann reached a 20-year high, with 1.1 lakh birds recorded.
1. Rajasthan's Rajiv Gandhi Employment Bill vs MGNREGA
GS area: Governance, Social Policy (rural employment)
The Rajasthan government's Rajiv Gandhi Guaranteed Employment Bill proposed extending the MGNREGA guarantee from 100 to 200 days in the state. The Centre contested whether a state can extend a Central scheme's guarantee through state legislation.
MGNREGA structure: A Central Act (2005). The Centre funds wages (100 per cent) and most material costs. States bear a modest share of material costs. The 100-day guarantee is a statutory minimum in the Central Act.
State's argument: Nothing in the MGNREGA prohibits a state from using its own funds to extend the guarantee beyond 100 days. The Rajasthan Bill earmarks state funds for days 101-200.
Centre's concern: If states extend the guarantee through their own legislation, it creates a precedent that fragments implementation. Workers in Rajasthan would have a different entitlement than workers in other states.
Seventh Schedule (Concurrent List): Employment and social security are partly in the Concurrent List. A state law on employment can coexist with a Central law if they do not conflict.
Article 254: In case of conflict between Central and state law on a Concurrent List subject, the Central law prevails to the extent of the inconsistency. The dispute is whether the Rajasthan Bill conflicts with MGNREGA.
Rajasthan's record: The state has consistently used MGNREGA as a safety net for drought-affected tribal and SC/ST workers. The 200-day demand reflects a high dependency on the programme in the state's semi-arid districts.
2. Insolvency and Bankruptcy Code: raising operational creditor threshold
GS area: Economy (insolvency, regulation)
The Insolvency Law Committee (ILC) recommended raising the minimum threshold for operational creditors to initiate insolvency proceedings from Rs 1 crore to Rs 5 crore to prevent frivolous proceedings against solvent firms.
IBC, 2016: India's unified insolvency framework. Initiated the Corporate Insolvency Resolution Process (CIRP) when a financial creditor or operational creditor files an application before the NCLT.
Operational creditors: Suppliers of goods and services, employees, workers. Distinguished from financial creditors (banks and bond holders). Operational creditors rank lower than financial creditors in the waterfall distribution.
Threshold change effect: The current Rs 1 crore threshold is low. Many operational creditors file CIRP applications to use the threat of insolvency as leverage, not because the corporate debtor is genuinely insolvent.
Pre-packaged insolvency (PPIRP): An alternative introduced in 2021 for MSMEs, allowing a pre-agreed resolution plan before formal NCLT admission.
NCLT workload: As of April 2026, 24,000+ CIRP cases pending before NCLT. Frivolous applications contribute to this backlog.
Financial creditors' concern: Raising the threshold reduces the IBC's deterrent effect on promoters who wilfully default on trade dues to small suppliers.
Waterfall distribution (Section 53, IBC): The priority of claims in liquidation: (1) Insolvency resolution costs, (2) secured creditors, (3) employees (24 months dues), (4) unsecured creditors and operational creditors, (5) government dues, (6) equity shareholders.
Static linkage: IBC, NCLT, creditor rights, ease of doing business.
3. India-ASEAN: connectivity through Myanmar
GS area: International Relations
India's External Affairs Minister S. Jaishankar met ASEAN Foreign Ministers in Jakarta. The India-Myanmar-Thailand (IMT) Trilateral Highway was the central discussion item, as Myanmar's civil war threatened to stall India's Act East Policy.
India-Myanmar-Thailand Trilateral Highway: 1,360 km from Moreh (Manipur) to Mae Sot (Thailand). A key pillar of India's Act East Policy. Completion target: December 2026. Civil war in Myanmar had disrupted construction logistics and contractor security.
Act East Policy: India's strategic engagement with Southeast Asia. Launched by PM Modi in 2014. Upgrades "Look East" (begun 1991) from trade-focused to security and connectivity-focused.
ASEAN-India FTA: Currently under review. The 2010 FTA led to a large trade deficit for India (India imports more from ASEAN than it exports). The review focuses on rules-of-origin norms and services.
Myanmar civil war: Since the February 2021 coup, resistance forces control about 40 per cent of Myanmar's territory. Highway construction in Sagaing region and Shan State crosses conflict zones.
Kaladan Multi-Modal Transit Transport Project: The other key India-Myanmar connectivity project. Connects Kolkata to Mizoram via a sea route through Sittwe port, then inland by waterway and road.
BIMSTEC: Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. India, Bangladesh, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan. Connectivity through Myanmar is a BIMSTEC infrastructure priority.
Static linkage: Act East Policy, India-ASEAN, connectivity, BIMSTEC.
4. Flamingo nesting in Kutch Rann: record 1.1 lakh birds
GS area: Environment (biodiversity, wetlands)
The 2026 flamingo census in the Rann of Kutch recorded 1.1 lakh greater flamingo nests, the highest count since 2006, attributed to favourable rainfall and reduced disturbance during the monsoon.
Species: Greater Flamingo (Phoenicopterus roseus). The Rann of Kutch is one of the world's largest flamingo breeding colonies.
Rann of Kutch: A seasonal salt marsh in Gujarat. During winter, it is a white saline desert; during monsoon, it floods and creates ideal nesting conditions for flamingos.
Nesting ecology: Flamingos build mud-mound nests in shallow saline water. They breed in colonies for protection from predators. The saline environment deters most land predators.
Threats: Tourism intrusion, stray cattle and dogs, drone surveillance by enthusiasts, salt harvesting in the nesting zone and industrial development near the Rann.
Ramsar Convention: The Rann of Kutch is not currently a Ramsar Wetland of International Importance, despite its ecological significance. India has 85 Ramsar sites as of 2026.
Wildlife Protection Act, 1972: The Greater Flamingo is listed under Schedule IV, which prohibits hunting but allows regulated collection. The Indian Wild Ass Sanctuary, which overlaps with flamingo nesting areas, provides partial protection.
5. India's energy transition: green hydrogen update
GS area: Economy, Environment (energy)
The Ministry of New and Renewable Energy released a progress report on the National Green Hydrogen Mission (NGHM), showing that India had achieved 4 GW of electrolyser manufacturing capacity but was yet to produce even 0.1 million tonnes of green hydrogen per year.
Green hydrogen: Produced by electrolysis of water using renewable electricity. Zero-carbon hydrogen. Distinguished from grey hydrogen (from fossil gas, high carbon) and blue hydrogen (fossil gas with carbon capture).
NGHM target (2023): 5 million tonnes per year (MTPA) of green hydrogen production by 2030. 125 GW of renewable energy capacity dedicated to hydrogen. Rs 19,744 crore central outlay.
Production gap: India produced approximately 0.04 MTPA in 2025-26. The 5 MTPA target requires a 125-fold increase in 4 years.
Electrolyser technology: Polymer Electrolyte Membrane (PEM) electrolysers are efficient but expensive. Alkaline electrolysers are cheaper but less efficient. India's electrolyser manufacturing capacity (4 GW) is a positive, but demand from domestic producers has not materialised at scale.
Hydrogen cost: Green hydrogen costs $4-6 per kg to produce in India. To be competitive with fossil alternatives in fertiliser production, it needs to reach $1.5-2 per kg. This "green hydrogen cost gap" requires either technology improvements or carbon pricing.
Strategic importance: Green hydrogen is critical for decarbonising steelmaking, fertiliser production and heavy transport, sectors that cannot be electrified directly.
Static linkage: Energy transition, climate, hydrogen, NGHM.
12. Briefly noted
Katchatheevu island issue: The Madras High Court heard petitions from Tamil fishermen seeking access to Katchatheevu, the small island ceded to Sri Lanka in 1974. The fishermen traditionally used the island's St. Anthony's Church for an annual festival and to dry fishing nets.
India's space debris problem: ISRO's Space Situational Awareness (SSA) unit tracked 127 conjunctions (close approaches) involving Indian satellites in Q1 2026, driven by increasing satellite density in LEO.
Practice MCQs
Check yourself
Under the Insolvency and Bankruptcy Code (IBC), which of the following describes the correct order of priority in the liquidation waterfall (Section 53)?
Check yourself
The India-Myanmar-Thailand (IMT) Trilateral Highway connects:
Check yourself
Green hydrogen is produced by:
Check yourself
The Greater Flamingo (Phoenicopterus roseus) is listed under which Schedule of the Wildlife Protection Act, 1972?
Check yourself
Article 254 of the Indian Constitution deals with: