Which District of Uttar Pradesh is Known as the City of Printing?

Uttar Pradesh is a large state in northern India, known for its rich history, culture and significance in the country’s development. It is famous for its historical sites, temples, and as the birthplace of major religions like Hinduism and Buddhism. The state is also an important center for agriculture and industry. In this article, we will know about the district of Uttar Pradesh which is known as the “City of Printing.”

An Overview of Uttar Pradesh

Uttar Pradesh is a large state in northern India, with over 241 million people, making it the most populated state in India and the world’s most populous subdivision. It shares borders with Rajasthan, Haryana, Himachal Pradesh, Delhi, Uttarakhand, Nepal, Bihar, Madhya Pradesh, Chhattisgarh and Jharkhand. The state covers an area of 243,286 square kilometers, and its capital is Lucknow, while Prayagraj serves as the judicial capital. Uttar Pradesh has 18 divisions and 75 districts.

Number of Districts of Uttar Pradesh

Uttar Pradesh has 75 districts, each managed to ensure smooth governance. To make administration easier, the state is divided into 18 divisions. These divisions help in organizing and coordinating government work more effectively across the state.

City of Printing in Uttar Pradesh

Farrukhabad, a district in Uttar Pradesh, is known as the “City of Printing.” This name comes from the city’s rich history and skilled craftsmanship in the textile industry. Farrukhabad is famous for its traditional block printing, Zari Zarodi work, and other textile printing techniques. These beautiful creations are highly sought after both in India and abroad.

Block Printing in Farrukhabad

Farrukhabad is famous for its block printing, a craft that dates back to the Mughal period. Block printing is done by using wooden or brass blocks to imprint designs on fabrics. These fabrics, often made of silk or cotton, feature bright, colorful and intricate patterns. Common designs include paisley, butis, tree of life and Kairi (mango).

Zari Zardori Industry

The district is also well-known for its Zari Zardori work, which is a type of intricate embroidery done with gold or silver threads. This craft is so popular in Farrukhabad that it has spread across the entire state of Uttar Pradesh. The Zari Zardori work is often used for wedding dresses and special occasion garments, making it a key part of India’s textile industry.

Other Type of Textile Printing

In addition to block printing and Zari Zardori, Farrukhabad is also recognized for its screen printing techniques. This method is used to create patterns on fabric by pushing ink through a mesh screen. The results are bright, clear designs that are in high demand.

Gati Shakti Vishwavidyalaya, Navy Sign MoU for Logistics Education

Gati Shakti Vishwavidyalaya (GSV) and the Indian Navy signed a Memorandum of Understanding (MoU) to enhance education, research, and training in logistics for the Navy. This collaboration is aimed at strengthening the logistics capabilities of the Indian Navy, focusing on key areas like supply chain management, multimodal transportation, and sustainability. This strategic partnership will also align with national initiatives such as the PM Gati Shakti National Master Plan 2021 and the National Logistics Policy 2022.

Key Highlights

MoU Signing

Signed by Vice Admiral Deepak Kapoor, Controller of Logistics, Indian Navy, and Manoj Choudhary, Vice Chancellor, Gati Shakti Vishwavidyalaya.

Objectives of the Collaboration

Strengthen the Indian Navy’s logistics framework.
Focus on supply chain management, multimodal transportation, and sustainability in logistics.

Alignment with National Initiatives

The collaboration supports the PM Gati Shakti National Master Plan 2021 and the National Logistics Policy 2022 to enhance national logistics efficiency.

Technological Integration

The MoU facilitates the exchange of expertise in emerging areas such as,
AI applications
Predictive analytics
Blockchain technology for logistics optimization.

Educational Opportunities for Navy Officers

Indian Navy officers will have opportunities to pursue academic degrees and management programs at GSV, focusing on logistics and management.

Partnership with Other Defence Services

GSV has existing partnerships with the Indian Army and Indian Air Force, expanding its support to all three services for education and research in logistics and transportation.

University’s Focus

GSV’s focus on transportation and logistics places it at the forefront of innovation and skill development in this crucial sector.

Statements from Leaders

Vice Admiral Deepak Kapoor emphasized that this collaboration would equip the Navy with advanced logistics capabilities and operational insights.
Manoj Choudhary highlighted the importance of efficient logistics for rapid force mobilization and affirmed GSV’s commitment to fulfilling its national mandate.

Summary/Static	Details
Why in the news?	Gati Shakti Vishwavidyalaya, Navy Sign MoU for Logistics Education
MoU Signed By	Vice Admiral Deepak Kapoor (Indian Navy) and Manoj Choudhary (GSV)
Objective	Enhance logistics education, research, and training for the Indian Navy.
Key Focus Areas	– Supply chain management – Multimodal transportation – Sustainability in logistics
National Initiatives Supported	– PM Gati Shakti National Master Plan 2021 – National Logistics Policy 2022
Technological Areas Covered	– AI applications – Predictive analytics – Blockchain technology
Educational Opportunities	Indian Navy officers to pursue academic degrees and management programs at GSV
Existing Partnerships	GSV already collaborates with Indian Army and Indian Air Force for logistics and transportation education
University’s Role	Focus on transportation and logistics innovation and skill development
Significance	Marks a milestone in strengthening the Navy’s logistics capabilities and operational efficiency

Public Sector Banks Record Net Profit of Rs 85,520 Crore In First Half FY2024-25

In the first half of FY 2024-25, Public Sector Banks (PSBs), including the State Bank of India (SBI), reported a net profit of ₹85,520 crore, marking an impressive 26% growth compared to ₹67,850 crore during the same period in the previous year. This significant achievement underscores the operational efficiency and financial resilience of PSBs, driven by improved asset quality, robust credit monitoring, and enhanced operational efficiency.

Strengthened Governance and Capital Base

The turnaround in the fortunes of PSBs can be largely attributed to strengthened governance practices and a bolstered capital base.

1. Key Governance Reforms

The government has implemented several key reforms, which include:

Arm’s-length selection of top management to ensure transparency and efficiency.
Introduction of non-executive chairpersons for nationalised banks, bringing enhanced accountability.
Filling of key leadership positions through market-based recruitment, ensuring merit-driven appointments.

These initiatives have transformed governance structures in PSBs, enabling better decision-making and leadership.

2. Capital Strengthening

Increased capital retention has significantly improved the Capital-to-Risk-Weighted-Assets Ratio (CRAR), keeping it well above the regulatory requirement.
PSBs have successfully enhanced shareholder value, distributing ₹61,964 crore in dividends over the past three years.
This reflects their financial strength and a strong commitment to rewarding stakeholders, including the government as their principal owner.

Improvement in Asset Quality

One of the most significant indicators of the progress made by PSBs is the sustained improvement in asset quality.

1. Decline in NPAs

Gross Non-Performing Assets (GNPA) have seen a sharp decline to 3.12% in September 2024, down from their peak of 14.58% in March 2018.
Net NPAs (NNPA) have also fallen to below 1%, showcasing significant progress in managing bad loans.

2. Interventions Leading to Success

This success has been driven by targeted interventions, such as:

Rigorous recoveries of defaulted loans.
Improved underwriting standards to ensure better loan approvals.
Substantial write-offs of legacy bad loans to clean up balance sheets.

3. Role of the Asset Quality Review (AQR)

A critical turning point came in 2015 when the Reserve Bank of India (RBI) introduced the Asset Quality Review (AQR).

The AQR mandated transparent recognition of NPAs and required reclassification of restructured loans.
While this initially led to a sharp increase in reported NPAs, it laid the foundation for financial discipline and sustainable growth.

Supporting Credit Growth Across Key Sectors

With strengthened financial health, PSBs have been instrumental in driving credit expansion across crucial sectors.

1. Sectoral Credit Growth

PSBs have been pivotal in extending credit to:

Retail customers, driving consumption-led growth.
Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the economy.
Infrastructure projects, supporting the development of key economic assets.

2. Focus on Green Finance and ESG Lending

PSBs are increasingly playing a role in green finance by funding environmentally sustainable projects.
Their emphasis on Environmental, Social, and Governance (ESG)-focused lending aligns them with India’s sustainability goals.

No New PSB Mergers but Stronger Synergies

Government’s Stand on PSB Mergers

Recently, Pankaj Chaudhary, Minister of State for Finance, informed the Rajya Sabha that the government is not contemplating another round of PSB mergers.
However, he highlighted that previous mergers have led to better synergies, economies of scale, and uniform improvement in financial performance.

PSBs: A Key Pillar of India’s Economic Growth

At their current pace, PSBs are expected to surpass the previous fiscal year’s net profit of ₹1.46 lakh crore.

1. Resilient Financial Institutions

The turnaround in PSBs highlights their growing role as resilient financial institutions capable of withstanding economic challenges.

2. Strategic Partners in India’s Growth

PSBs are emerging as strategic partners in India’s pursuit of a $5 trillion economy.
With their robust fundamentals and growing credit support, they are well-positioned to foster sustainable and inclusive development.

Here’s the summary of the news in tabular form:

Why in News	Key Points
PSBs Report Strong Financial Growth in FY 2024-25	– PSBs, including SBI, reported ₹85,520 crore net profit in H1 FY 2024-25, a 26% growth compared to last year.
	– This highlights PSBs’ operational efficiency, financial resilience, improved asset quality, credit monitoring, and operational efficiency.
Strengthened Governance and Capital Base	– Governance reforms: Arm’s-length selection of top management, non-executive chairpersons for nationalized banks, market-based recruitment for key leadership positions.
	– Capital strengthening: Increased capital retention improving CRAR; ₹61,964 crore distributed in dividends over the last 3 years.
Improvement in Asset Quality	– Gross NPAs dropped to 3.12% (Sept 2024) from 14.58% (March 2018).
	– Net NPAs fell below 1%, showing significant progress in managing bad loans.
	– Interventions: Rigorous recoveries, better underwriting standards, and write-offs of legacy bad loans.
	– Asset Quality Review (AQR) by RBI (2015) initiated transparency and discipline in recognizing NPAs and reclassifying restructured loans.
Supporting Credit Growth Across Sectors	– PSBs driving credit growth in retail, MSMEs, and infrastructure sectors.
	– Focus on green finance and ESG lending supporting India’s sustainability goals.
PSB Mergers	– Government not planning new PSB mergers; however, previous mergers led to synergies, economies of scale, and improved financial performance.
PSBs as Pillars of Economic Growth	– PSBs are set to exceed last year’s net profit of ₹1.46 lakh crore.
	– They are emerging as resilient financial institutions and strategic partners in India’s pursuit of a $5 trillion economy.
	– PSBs’ growing role in sustainable and inclusive development.

Wholesale Inflation Eases to 1.9% in November Amid Cooling Food Prices

India’s wholesale inflation moderated to 1.9% in November, down from 2.4% in October, with food price inflation easing significantly from a 25-month high of 11.6% in October to 8.9%. Despite this, prices for manufactured products, such as food products, furniture, pharmaceuticals, and electrical equipment, continued to rise, contributing to higher inflation in this category. Retail inflation also saw a slowdown, but food prices, particularly for certain items like edible oils and potatoes, remained high.

Key Drivers of Inflation in November

Food Price Inflation

Food inflation decelerated to 8.9% from 11.6% in October, with notable drops in vegetable prices (from 63% to 28.6%), although potato prices rose sharply by 82.8%.
Edible oils and fats saw a steep rise of 28%, up from 20.2% in October.
Inflation in pulses, fruits, wheat, and paddy persisted, but at a slower pace.

Manufactured Products Inflation

Prices for manufactured goods saw an uptick, notably in food products, pharmaceuticals, and textiles, rising 2% in November, driven by elevated input costs.

Fuel and Power

Fuel and power prices remained in deflationary territory, with a 5.83% decline year-on-year.

Core Inflation

Core inflation, excluding food and energy, remained subdued despite higher prices in manufactured goods.

Sequential Changes

On a month-on-month basis, the Wholesale Price Index (WPI) fell by 0.06%, driven by declines in primary articles and food items.
Fuel prices rose by 1.2%, breaking a two-month streak of declines, while manufactured products saw a slight increase of 0.4%.

Outlook

Experts expect further moderation in inflation, with the possibility of rate cuts by the Reserve Bank of India, even as food price inflation, especially for specific items, remains a challenge.

Summary of the news

Why in News	Key Points
Wholesale inflation eases in November	– India’s wholesale inflation dropped to 1.9% in November from 2.4% in October. – Food inflation slowed to 8.9% from 11.6%. – Vegetable inflation dropped from 63% to 28.6%. – Potato inflation surged to 82.8%. – Manufactured products inflation rose by 2%.
Primary articles and fuel prices	– Primary articles inflation eased to 5.5% from 8.1% in October. – Fuel and power prices continued in deflation, falling by 5.83%.
Food inflation specifics	– Edible oils and fats inflation surged to 28% from 20.2%. – Inflation in pulses, wheat, and paddy remained elevated at 6-8%.
Manufactured goods and fuel impact	– Manufactured goods saw a 2% rise due to higher input costs. – Fuel prices increased by 1.2%, ending a two-month deflationary trend.
Core inflation	– Core inflation, excluding food and energy, remained subdued.
Current WPI index	– The Wholesale Price Index (WPI) saw a month-on-month decrease of 0.06%.
Fiscal Year Trends	– Wholesale inflation for FY 2024-25 averaged 2.1% till November, up from a contraction of 1.3% in the same period last year.

INS Nirdeshak: Indian Navy’s New Survey Ship Commissioned

The Indian Navy is set to commission INS Nirdeshak, a new survey ship, on December 18, 2024, at the Naval Dockyard in Visakhapatnam. This event, with Hon’ble Raksha Rajya Mantri Shri Sanjay Seth as the Chief Guest, signifies a major leap in India’s naval capabilities. The vessel, constructed by Garden Reach Shipbuilders & Engineers (GRSE) in Kolkata, is the second ship under the Survey Vessel (Large) Project. INS Nirdeshak will enhance India’s maritime presence, especially in the Indian Ocean Region, and will continue the legacy of the original Nirdeshak, which served the Navy for 32 years before being decommissioned in 2014.

Key Specifications and Features

Size and Capacity: The 110-meter ship weighs around 3,800 tons and is powered by dual diesel engines for efficient performance.

Indigenous Construction: Over 80% of the components are locally sourced, aligning with India’s vision of self-reliance in defense manufacturing.

Advanced Hydrographic Equipment: The ship is equipped with state-of-the-art technology for hydrographic and oceanographic surveys, including a data acquisition system, autonomous underwater vehicle, digital sonar, and DGPS long-range positioning systems.

Operational Role and Strategic Importance

Enhanced Maritime Operations: As the second vessel in the Survey Vessel (Large) Project, INS Nirdeshak is designed to aid in sea floor mapping, maritime navigation, and supporting naval operations.

Strategic Positioning: Its commissioning bolsters India’s maritime presence in the crucial Indian Ocean Region and strengthens its international cooperation in marine surveys.

Past Legacy and Technological Evolution

Legacy of INS Nirdeshak: The original INS Nirdeshak served the Indian Navy for over three decades before being decommissioned in 2014, setting a high standard for its successor.

Technological Advancements: The new vessel showcases cutting-edge design and technological upgrades, reflecting the Navy’s evolving capabilities in the modern maritime landscape.

Performance and Endurance

Extended Range: INS Nirdeshak is capable of operating for over 25 days at sea, with a speed of more than 18 knots, ensuring its capability for extensive surveys and sustained operations.

Summary of the news

Why in News	Key Points
INS Nirdeshak Commissioning	Commissioned on December 18, 2024, at Naval Dockyard, Visakhapatnam. Chief Guest: Hon’ble Raksha Rajya Mantri, Shri Sanjay Seth.
Ship Specifications	Length: 110 meters, Weight: 3,800 tons, Powered by dual diesel engines, Equipped with advanced hydrographic technology.
Construction Details	Built by Garden Reach Shipbuilders & Engineers (GRSE), Kolkata, with over 80% indigenous components.
Role and Function	Second ship under Survey Vessel (Large) Project, designed for hydrographic and oceanographic surveys, sea floor mapping, and maritime navigation.
Legacy	Successor to the original INS Nirdeshak, which served the Navy for 32 years before decommissioning in 2014.
Endurance and Performance	Endurance: Over 25 days at sea, Speed: More than 18 knots.
Strategic Importance	Enhances India’s maritime presence, particularly in the Indian Ocean Region, and supports international cooperation in marine surveys.
Historical Dates	Keel laid: 1 December 2020, Launched: 26 May 2022, Delivered after completing extensive trials.

SLINEX 2024: Strengthening Sri Lanka-India Naval Ties

The Sri Lanka-India Naval Exercise (SLINEX) is a significant annual event that fosters maritime cooperation between the two nations. Initiated in 2005, SLINEX has grown in scope and importance over the years, strengthening the bilateral relationship between India and Sri Lanka. The 2024 edition of SLINEX will be held from December 17 to December 20, 2024, at Visakhapatnam under the auspices of the Eastern Naval Command. The exercise will be conducted in two phases: the Harbour Phase and the Sea Phase, focusing on enhancing interoperability, strengthening mutual understanding, and promoting regional maritime security.

Key Points of SLINEX 2024

Dates and Location

Duration: December 17 to December 20, 2024
Location: Visakhapatnam, under the Eastern Naval Command

Exercise Phases

Harbour Phase (17-18 December 2024)

Focus on professional and social exchanges.
Aimed at enhancing mutual understanding between the participating naval forces.

Sea Phase (19-20 December 2024)

Joint exercises in various operational domains, such as,

Special Forces operations
Gun firings
Communication drills
Seamanship practices
Navigation evolutions
Helicopter operations

Participating Units

India

Indian Naval Ship INS Sumitra (Naval Offshore Patrol Vessel of the Eastern Fleet)
Special Forces team

Sri Lanka

SLNS Sayura (Offshore Patrol Vessel)
Embarked Special Forces team

Significance of SLINEX

Strengthening Maritime Cooperation: SLINEX 2024 aims to further enhance the maritime relationship between India and Sri Lanka.
Interoperability: The exercise enables both navies to enhance their operational interoperability, sharing best practices and improving the coordination between the forces.
Regional Security: It plays a pivotal role in fostering a safe, secure, and rules-based maritime environment in the Indian Ocean region.

Inaugural Ceremony

Scheduled on December 17, 2024, marking the start of the Harbour Phase.

Evolution of SLINEX

Since its inception in 2005, the scope of SLINEX has grown, reflecting the evolving maritime challenges and the need for closer naval cooperation in the Indian Ocean region.

Objective of 2024 Edition

To reinforce the strong maritime ties between India and Sri Lanka.
Promote a safe, secure, and rules-based maritime order in the region.

Summary/Static	Details
Why in the news?	SLINEX 2024 (SRI LANKA–INDIA EXERCISE – 24)
Dates	December 17 to December 20, 2024
Location	Visakhapatnam, Eastern Naval Command
Exercise Phases	– Harbour Phase: 17-18 December 2024 (Professional and social exchanges) – Sea Phase: 19-20 December 2024 (Joint operational exercises)
Inaugural Ceremony	December 17, 2024, marking the start of the Harbour Phase
Participating Units	– India: INS Sumitra (Naval Offshore Patrol Vessel), Special Forces team – Sri Lanka: SLNS Sayura (Offshore Patrol Vessel), Special Forces team
Focus Areas in Sea Phase	– Special Forces operations – Gun firings – Communication drills – Seamanship practices – Navigation evolutions – Helicopter operations
Significance	– Strengthening maritime cooperation – Enhancing interoperability – Promoting a safe, secure, and rules-based maritime environment
Year of Inception	2005
Objective of 2024 Edition	– Reinforce maritime ties between India and Sri Lanka – Contribute to regional security in the Indian Ocean region

Which is the Frist E-Village of Uttar Pradesh?

Uttar Pradesh, located in northern India, is the country’s most populous state. Known for its rich culture, historical landmarks like the Taj Mahal, and fertile land, it plays a major role in agriculture, tourism and India’s heritage. It is a land of diversity and progress. In this article, we will know about the first e-village of Uttar Pradesh.

An Overview of Uttar Pradesh

Uttar Pradesh is a state in northern India and the most populated state in the country, with over 241 million people. It is more populated than many countries like China and the US. UP shares borders with Nepal, Rajasthan, Bihar and other states. It is the fourth-largest state by area, with Lucknow as its capital and Prayagraj as its judicial capital.

Number of Districts of Uttar Pradesh

Uttar Pradesh, India’s most populous state, has 75 districts, many with populations over 12 lakhs. For better administration, these districts are organized into 18 divisions.

First E-Village of Uttar Pradesh

Babura village, located in Kaushambi district, holds the title of being the first e-village in Uttar Pradesh. This village became the first in the state to offer e-governance services, making government work simpler and faster for its people with just a click of a button.

What is an E-Village?

An e-village is a place where government services are provided online through the internet. People can access important documents, certificates and other services from their village without visiting offices far away. It saves time and effort.

Location of Babura Village

Babura village is located in the Manjhanpur tehsil of Kaushambi district, Uttar Pradesh, India. It is 2 km away from Manjhanpur, which is both the district and sub-district headquarters.

ISRO Successfully Tests CE20 Cryogenic Engine

On December 12, 2024, ISRO successfully completed a critical milestone with the sea-level hot test of its CE20 cryogenic engine at the ISRO Propulsion Complex in Mahendragiri, Tamil Nadu. This test, conducted on November 29, 2024, was a crucial step for upcoming space missions and demonstrated the engine’s restart-enabling systems under ambient conditions. The CE20 cryogenic engine, developed indigenously by ISRO, plays a vital role in enhancing India’s space exploration capabilities.

Challenges and Innovations in Testing

Testing cryogenic engines at sea level is traditionally challenging due to the high area ratio nozzle with an exit pressure of about 50 mbar. The CE20 engine’s testing at sea level involved overcoming issues like flow separation, which could lead to severe vibrations and mechanical damage. To mitigate these issues, ISRO incorporated an innovative Nozzle Protection System, which not only solved these challenges but also reduced the complexity of the test procedure. The successful demonstration of the multi-element igniter, which is essential for engine restart, was another significant achievement in this test.

Significance for India’s Space Missions

The CE20 cryogenic engine significantly boosts India’s space program by enhancing the thrust and efficiency of rockets, enabling the launch of heavier payloads. This achievement positions ISRO among the few countries—along with the US, France, Russia, China, and Japan—that have developed indigenous cryogenic engines. With a thrust level of 19 tonnes, the CE20 has already powered several successful missions, including Chandrayaan-3, and is being upgraded to a thrust level of 22 tonnes for future missions like Gaganyaan. This progression strengthens India’s self-reliance in space technology and contributes to future missions such as interplanetary exploration and satellite launches.

Future Prospects

This test marks a major advancement in cryogenic propulsion technologies, further bolstering ISRO’s capabilities for future space endeavors. The successful demonstration of the CE20’s multi-element igniter and restart-enabling systems sets the stage for enhanced payload capacities in the upcoming LVM3 launches and Gaganyaan missions. With this achievement, ISRO continues to solidify its position as a leader in space exploration, positioning India for more ambitious space missions in the years ahead.

Summary of the news

Why in News	Key Points
ISRO successfully tested the CE20 cryogenic engine at sea level on November 29, 2024, at ISRO Propulsion Complex, Mahendragiri, Tamil Nadu.	– CE20 is used in the upper stage of the LVM3 launch vehicle.
	– The test demonstrated the engine’s restart-enabling systems and the performance of a multi-element igniter.
	– Challenges included flow separation and nozzle vibrations, addressed with an innovative Nozzle Protection System.
	– The engine has a thrust level of 19 tonnes and powers missions like Chandrayaan-3.
	– The CE20 engine is developed by ISRO’s Liquid Propulsion Systems Centre.
	– CE20 will be enhanced to a thrust level of 22 tonnes for future missions.
	– India is one of six countries (along with US, France, Russia, China, Japan) to have developed indigenous cryogenic engines.
Key Facts About CE20	– The engine operates using liquid oxygen (LOX) and liquid hydrogen (LH2) as propellants.
	– Liquid oxygen remains in liquid state below -183°C; liquid hydrogen stays liquid below -253°C.
Location	– ISRO Propulsion Complex, Mahendragiri, Tamil Nadu
Date of Successful Test	– November 29, 2024
Engine Thrust Levels	– 19 tonnes for current missions, 20 tonnes for Gaganyaan mission, and 22 tonnes for future C32 stage.
Significance of Cryogenic Engine	– Enables higher payload capacity for rockets like LVM3, enhancing India’s space capabilities.
	– Reduces dependence on foreign technology in cryogenic propulsion.

Centre Earns ₹8,625 Crore via Disinvestment in 2024-25

The Indian government has so far collected ₹8,625 crore through various minority stake sale disinvestment transactions during the current financial year 2024-25, according to MoS Finance Pankaj Chaudhary in a written reply to the Lok Sabha. While no specific disinvestment target has been set for FY25, the government continues its policy of strategic disinvestment and privatization, aiming to enhance efficiency and economic potential in sectors where competitive markets have matured.

Key Highlights of Disinvestments

₹8,625 Crore Realized

The government earned ₹8,625 crore through minority stake sales in FY25 so far.

No Disinvestment Target for FY25

Starting 2023-24 (RE), the government discontinued setting separate disinvestment targets.
For FY25, no estimate or target for disinvestment has been specified.

Methods of Disinvestment

Minority Stake Sale: Selling a smaller portion of government-held shares in public sector enterprises.
Strategic Disinvestment: Sale of substantial or entire government shareholding along with transfer of management control.

Privatization vs Strategic Disinvestment

Privatization: Government equity and management control are transferred to private strategic buyers.
Strategic Disinvestment: Transfer of government equity and control to another CPSE or private investor.

Government’s Strategic Policy

The policy aims to exit sectors where competitive markets have matured.
Privatization or strategic disinvestment allows,
Infusion of Capital
Technological Upgradation
Efficient Management Practices

Disinvestment Process and Challenges

Execution depends on several factors

Market Conditions
Economic Outlook (Domestic & Global)

Geopolitical Factors

Investor Interest
Administrative Feasibility

Strategic Disinvestment Approvals Since 2016

The government has given ‘in-principle’ approval for strategic disinvestment in 36 cases of PSEs and/or their subsidiaries, units, joint ventures, and banks.

Profitability Not a Criterion

Profitability or losses of PSEs are not relevant criteria for privatization or disinvestment decisions.

Summary/Static	Details
Why in the news?	Centre Earns ₹8,625 Crore via Disinvestment in 2024-25
Disinvestment Target for FY25	No specific target or estimate for FY25.
Disinvestment Methods	– Minority Stake Sale – Strategic Disinvestment (sale of substantial government shareholding with management transfer)
Privatization vs Strategic Disinvestment	– Privatization: Transfer of equity and control to private buyers. – Strategic Disinvestment: Transfer to CPSEs or private investors.
Policy Focus	Exit from sectors where competitive markets have matured; focus on, Capital infusion Technological upgrades Efficient management practices
Strategic Disinvestment Approvals	36 cases approved since 2016 (PSEs, subsidiaries, joint ventures, banks).
Profitability in Disinvestment	Not a relevant criterion for privatization or strategic disinvestment.

India’s Data Centre Industry Set to Surpass $100 Billion by 2027

India’s data centre market is undergoing a significant transformation, with investments expected to exceed $100 billion by 2027, marking a massive leap from the $60 billion invested between 2019 and 2024. Maharashtra and Tamil Nadu have emerged as the primary hubs for data centre development, with Mumbai, Chennai, Delhi-NCR, and Bengaluru dominating the industry. This surge in demand is driven by sectors like BFSI, technology, fintech, media, and the booming generative AI industry, positioning India as a global leader in digital infrastructure.

Key Investment Destinations

Maharashtra and Tamil Nadu are at the forefront of India’s data centre growth, attracting major investments due to their robust infrastructure and government support. Mumbai leads the charge, holding nearly 49% of the country’s total data centre capacity. Alongside it, Chennai, Delhi-NCR, and Bengaluru make up 90% of India’s data centre stock, showcasing the critical role of these cities in the digital ecosystem.

Growth in Data Centre Capacity

As of September 2024, India’s data centre stock stood at approximately 1,255 MW (~19 million sq. ft.), with projections to grow to 1,600 MW (~24 million sq. ft.) by the end of the year. An additional 475 MW is expected in 2025, primarily in Mumbai and Chennai, highlighting the ongoing expansion of digital infrastructure to meet increasing demand.

Demand Drivers and Occupancy Rates

With an occupancy rate of 75-80%, India’s data centre industry is fueled by the growing need for digital storage in sectors like banking, cloud computing, media, and the public sector. The rise of generative AI, forecasted to grow at 28% annually from 2023 to 2030, is a key driver, with the sector contributing a projected $400 billion to India’s economy by 2030.

Government Support and Incentives

State-level policies in Maharashtra, Tamil Nadu, and Telangana, which recognize data centres as “essential services,” have played a crucial role in attracting investments. These policies offer infrastructure benefits, further enhancing India’s appeal to global and domestic investors and cementing the country’s position in the global digital infrastructure landscape.

Looking Ahead

India’s data centre industry is poised for exponential growth, with the sector expected to exceed $100 billion in investments by 2027. The government’s supportive policies, combined with the rise of sectors like generative AI, will continue to drive demand, ensuring India remains a leader in global digital infrastructure.

Summary of the news

Why in News	Key Points
India’s Data Centre Industry	– Expected to exceed $100 billion in investments by 2027. – Maharashtra and Tamil Nadu are key investment destinations. – Mumbai holds 49% of India’s total data centre capacity. – India’s total data centre capacity was 1,255 MW (~19 million sq. ft.) as of September 2024. – Mumbai and Chennai expected to lead in data centre capacity expansion by 2025.
Generative AI Impact	– Generative AI is expected to grow at a CAGR of 28% from 2023 to 2030. – Expected to contribute $400 billion to India’s economy by 2030.
State-Level Policies	– Maharashtra, Tamil Nadu, and Telangana have defined data centres as “essential services” and offer infrastructure support.
Investment Statistics	– India attracted $60 billion in data centre investments from 2019 to 2024. – 475 MW of additional capacity under construction for 2025.
Key Cities in Data Centre Growth	– Mumbai, Chennai, Delhi-NCR, and Bengaluru account for 90% of India’s data centre stock.
Occupancy Rate	– Current occupancy rate of data centres is 75-80%.
Infrastructure Support	– Cable landing stations in Mumbai and Chennai enhance connectivity, critical for sectors like banking, cloud, and media.