Kalam IAS Academy was founded by a team of committed individuals who believe that the traditional way of UPSC preparation needs to be changed.
Current Edge Daily Brief 3rd September 2025
Quote of the Day
“Hypocrisy, double standards and ‘buts nots’ are the price of universalist pretensions.” – SAMUEL P HUNTINGTON
What the Others Say
“The White House wanted India to bow. Instead, Narendra Modi flew to China, shook Xi Jinping’s hand and left Washington sidelined.” – THE GUARDIAN
Table of Contents
THE BIG PICTURE
- IE Explained: Why Supreme Court wants to revisit Right to Education exemption for minority schools (Vidheesha Kuntamalla)
- IE Explained: What is the ‘axis of upheaval’, and what does it mean for the US and India? (Sonal Gupta)
- TH Text & Context: Decoding the SC order on regulatory assets (Rishu Garg)
NEWS IN SHORT
- APEDA launches BHARATI initiative to boost agri-food exports
The Big Picture
IE Explained: Why Supreme Court wants to revisit Right to Education exemption for minority schools
Syllabus: Pre/Mains – Society & Social Justice
Why in News?
Supreme Court questions its 2014 judgment that exempted minority schools from Right to Education Act, referring matter to larger bench for reconsideration.
Background: Right to Education Act 2009
- Core mandate: Free elementary education for children aged 6-14 under Article 21A
- Key requirements: 25% quota for disadvantaged students in private schools, qualified teachers, proper infrastructure, no corporal punishment
- Original exemption: Only religious instruction institutions like madrasas excluded, not minority-run schools
- Child-centric approach: Focused on individual child’s right rather than institutional autonomy
The 2014 Pramati Judgment Problem
- Blanket exemption granted: All minority schools (aided/unaided) freed from RTE compliance including 25% quota
- Constitutional conflict: Court prioritized Article 30(1) minority rights over Article 21A education rights
- Immediate misuse: Many private schools sought minority status to escape RTE obligations
- Elite shield: So-called minority institutions continued as exclusive schools without admitting poor children from own community
Current Supreme Court Concerns (September 2025)
- Undermined universal education: 2014 ruling fragmented common schooling vision and weakened inclusivity
- Regulatory loophole: Created surge in institutions seeking minority status to bypass RTE requirements
- Quality compromise: Minority school children denied benefits like trained teachers, infrastructure, mid-day meals
- Social division: Reinforced divides instead of creating integrated classrooms across communities
Court’s New Position
- Case-by-case approach: 25% quota impact on minority character should be judged individually, not blanket exemption
- Same community admission: Suggested fulfilling quota through disadvantaged children from same minority group
- Teacher standards apply: All schools including minority must follow Teacher Eligibility Test for hiring
- Balance needed: Article 21A and Article 30(1) can coexist without destroying minority identity
Next Steps
- Larger bench review: Matter referred to Chief Justice for 7-judge constitution bench
- Four key questions framed: Whether 2014 exemption needs reconsideration and how to balance minority rights with universal education
- Potential outcome: If overturned, minority schools may need to comply with RTE provisions including 25% quota.
IE Explained: What is the ‘axis of upheaval’, and what does it mean for the US and India?
Syllabus: Pre/Mains – International Relations
Why in News?
Xi Jinping championed a “multipolar world” at the recent Shanghai Cooperation Organisation summit attended by Modi and Putin, highlighting the growing challenge to US global dominance by the “axis of upheaval” countries.
What is the ‘Axis of Upheaval’?
Origins & Definition
- Term coined by Andrea Kendall-Taylor and Richard Fontaine in April 2024 Foreign Affairs article
- Describes loose alignment of China, Russia, Iran, and North Korea (CRINK)
- Not formal alliance but “collection of dissatisfied states” seeking to overturn US-dominated international system
- Shared purpose of creating alternative to current Western-led global order
Key Characteristics
- Deepening economic, military, political and technological cooperation
- Anti-Western sentiments binding factor rather than formal treaties
- Accelerated cooperation after Russia’s 2022 Ukraine invasion
- Also called “quartet of chaos” or “axis of autocracies”
CRINK Countries & Internal Dynamics
China-Russia Relations
- “No-limits” partnership since 2022
- Massive pipeline deal for Russian gas to China as Europe phases out Russian energy
- Russia increasingly isolated, pushing closer to China since 2014 Crimea annexation
- China maintains distance from Ukraine war to avoid complete Western abandonment
Iran’s Role
- 90% of Iranian oil imports go to China amid Western sanctions
- Supplies drones to Russia for Ukraine war
- 20-year defense pact with Russia signed January 2025
- Strategic partnership with China since 2021
North Korea’s Position
- Deployed 11,000+ soldiers to support Russia in Ukraine
- Mutual defense pact with Iran signed
- Move strains China-North Korea ties as Beijing loses regional influence
- Kim Jong Un’s first international trip since 2023 to China military parade
Implications for the United States
Strategic Challenges
- Undermines effectiveness of Western sanctions and export controls
- Erodes US military advantages in key regions like Middle East
- Creates alternative economic forum diluting US foreign policy tools
- Third major challenge to US power after Axis Powers (1937-41) and Cold War (1948-62)
Global Impact
- Emboldens other anti-Western states and actors
- Contributes to more unstable global environment
- Pushes transformation toward two opposing international orders
- Creates opportunities for regional conflicts and coups in Africa
India’s Complex Position
Current Tensions with US
- Trump imposed 50% tariffs on India, higher than China
- 25% penalty on Russian oil purchases plus 25% reciprocal levy
- Trade talks stalled since reciprocal tariffs took effect
- Trump criticism of India’s high tariffs and trade barriers
Engagement with Axis Countries
- Modi’s first China visit in 7 years at SCO summit
- Bilateral meetings with both Xi and Putin
- Member of SCO and BRICS alongside China, Russia, Iran
- India-China called each other “partners, not rivals” at summit
Strategic Balancing
- Distances itself from anti-Western views of axis countries
- Maintains engagement with US despite tariff disputes
- Values strategic autonomy over alignment with single bloc
- Democrats criticize Trump for “singling out” India and “sabotaging” ties
- Challenge is maintaining sovereignty while preserving US relationship
TH Text & Context: Decoding the SC order on regulatory assets
Syllabus: Pre/Mains – Economy
Why in News?
Supreme Court directed State Electricity Regulatory Commissions and DISCOMs to clear existing regulatory assets within four years and new assets within three years, with 3% ARR cap.
Understanding Regulatory Assets
Definition and Mechanism
- Unrecoverable revenue gap between Average Cost of Supply (ACS) and Annual Revenue Requirement (ARR)
- Created when DISCOM’s cost per unit exceeds revenue collected from tariffs and subsidies
- Deferred cost recovery mechanism to avoid sudden tariff shocks to consumers
- Recorded as future receivables with carrying interest costs
Scale of Problem
- Delhi DISCOMs: BSES Rajdhani ₹36,057 crore, BSES Yamuna ₹22,040 crore, Tata Power ₹8,227 crore
- Tamil Nadu: ₹89,375 crore (FY 2021-22)
- National estimate: ₹1.6-1.7 trillion accumulated regulatory assetspowerline+1
- Punjab’s early case: ₹487 crore gap with ₹150 crore converted to regulatory asset
ACS-ARR Gap Causes
Primary Factors
- Non-cost reflective tariffs set below actual supply costs
- Delayed subsidy releases from state governments for agriculture/low-income consumers
- Sudden fuel price increases leading to higher power purchase costs
- Political pressure preventing adequate tariff adjustments
Consumer and DISCOM Impact
Consumer Effects
- Immediate tariff stability but eventual steeper increases during recovery
- Additional burden of carrying costs/interest on deferred amounts
- Delhi example: ₹16,580 crore annual recovery needed = ₹5.5 per unit additional cost
DISCOM Consequences
- Severe cash flow pressures affecting generator payments
- Increased borrowing and debt burden
- Limited investment capacity for grid modernization and renewable integration
- Vicious cycle of operational challenges and efficiency deterioration
Supreme Court Directions
Key Guidelines
- Existing regulatory assets: liquidation within 4 years from April 2024
- New regulatory assets: liquidation within 3 years, capped at 3% of ARR
- Transparent recovery roadmaps with intensive audits required
- APTEL to monitor implementation through suo moto petitions
Way Forward
Financial Discipline Measures
- Cost-reflective tariffs with targeted subsidies for vulnerable consumers
- Timely subsidy releases from state governments
- Automatic fuel cost adjustment mechanisms for input cost variations
- Regular annual true-up exercises to prevent backlogs
Regulatory Reform
- Strict enforcement of asset limits and recovery timelines
- Enhanced transparency in accounting practices
- Clear regulatory commission accountability framework
- Coordinated action across sector stakeholders for sustainable electricity pricings.
News in Short
APEDA launches BHARATI initiative to boost agri-food exports
Why in News?
APEDA launched BHARATI initiative on September 2, 2025 to empower 100 agri-food startups and achieve $50 billion agri-exports by 2030.
Program Overview
- Full form: Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement
- Target beneficiaries: 100 agri-food and agri-tech startups in pilot cohort
- Export goal: $50 billion by 2030 for APEDA scheduled products
- Launch timeline: Pilot cohort starting September 2025
- Program duration: Three-month acceleration program per cohort
- Future scope: Scalable annual incubation model for continuous innovation
Focus Areas & Technologies
- High-value categories: GI-tagged products, organic foods, superfoods, processed Indian agri-foods, livestock products, AYUSH products
- Advanced technologies: AI-based quality control, blockchain traceability, IoT-enabled cold chains, agri-fintech solutions
- Critical challenges addressed: Product development, value addition, quality assurance, perishability, wastage, logistics
- Innovation areas: Packaging solutions, sustainability protocols, sea transportation standards
Implementation Strategy
- Selection process: Application through APEDA website beginning September 2025
- Partnership network: State agricultural boards, agricultural universities, IITs, NITs, industry bodies, existing accelerators
- Program components: Product development, export readiness, regulatory compliance, market access, collaborative solutions
- Ecosystem building: Connect agri-food innovators with tech-driven solution providers
- Alignment: Atmanirbhar Bharat, Vocal for Local, Digital India, Startup India initiatives
- Awareness campaign: Nationwide stakeholder engagement across India
