UPSC current affairs · Saturday

Current Affairs, 1 August 2026

5 issues picked from 39 PIB releases · about 2 minutes each · written by UPSC Grade, each fact checked against its PIB release or by a second model

How to readRead “Why in news” and “What it is” for every issue. Open For Prelims or For Mains for the exam you’re preparing for, then Test yourself at the foot of each card. Half the news questions in Prelims are answered from background, not the news itself.

In 60 seconds

Samudra Manthan - National Offshore Exploration Scheme. Cabinet approves ₹84,084 crore scheme to share deepwater drilling risk and boost offshore oil and gas output.
Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY). PM-VBRY pays first-time workers and their employers for new EPFO-registered formal jobs.
Left Wing Extremism in India. India declares itself effectively Naxal-free by March 2026 after a security, development and surrender-led strategy.
Tax devolution to States. Centre releases Rs 1,09,019 crore advance tax devolution to States, beyond the regular monthly instalment.
State Disaster Response Fund (SDRF). Centre advances ₹2,117.85 crore SDRF funds to six flood-affected States during the 2026 monsoon.

Scheme

Samudra Manthan - National Offshore Exploration Scheme

GS3 Energy securityGS3 EconomyPrelims and Mains

Why in news: On 31 July 2026 the Union Cabinet approved 'Samudra Manthan', the National Offshore Exploration Scheme, with an outlay of ₹84,084 crore through FY 2030–31 (release dated 1 August 2026).
What it is: Samudra Manthan is a Central Sector Scheme of the Ministry of Petroleum and Natural Gas to speed up offshore oil and gas exploration. It combines seismic data, risk-sharing support for deepwater wells, common infrastructure and domestic manufacturing zones. It follows earlier reforms that opened offshore acreage and changed the contract regime.

Type and outlay: Central Sector Scheme of the Ministry of Petroleum and Natural Gas, with a Phase-I outlay of ₹84,084 crore up to 31 March 2031.
Drilling support: Government supports up to 50% of eligible drilling cost, capped at ₹675 crore per well, for 60 deepwater exploration wells (₹43,200 crore).
Other components: Seismic data ₹28,534 crore; common offshore infrastructure hubs ₹10,000 crore; Oil and Gas Manufacturing and Services Zones ₹2,000 crore.
Targets: Raise domestic oil and gas output from about 62 to 80 MMTOE a year and the resource base from 1.6 to 2.2 billion TOE, subject to exploration success.
Target basins: Future potential lies in deepwater and ultra-deepwater basins such as Krishna-Godavari, Cauvery, Mahanadi and Andaman.
Contract regime: India moved from Production Sharing Contracts to Revenue Sharing Contracts.
Type and ministry: A Central Sector Scheme of the Ministry of Petroleum and Natural Gas.
Outlay and period: Rs.84,084 crore, to be implemented up to FY 2030-31.
Components: Seismic data, deepwater and ultra-deepwater drilling, scientific drilling in frontier basins, common offshore production and evacuation infrastructure, and an integrated Oil & Gas Manufacturing and Services Zone.
Expected outcome: Reserve accretion of over 600 MMTOE, more production, employment and indigenous manufacturing.
Origin: Based on the Prime Minister's Independence Day 2025 speech from the Red Fort.

Don’t confuse with Production Sharing vs Revenue Sharing Contract: Under a PSC the government shares profit petroleum after cost recovery. Under a Revenue Sharing Contract the government takes a share of gross revenue, with no cost-recovery audit.

Don’t confuse with Central Sector vs Centrally Sponsored Scheme: A Central Sector Scheme is fully funded and run by the Centre. A Centrally Sponsored Scheme is shared with States.

Don’t confuse with Samudra Manthan vs Deep Ocean Mission: Samudra Manthan targets offshore oil and gas exploration under the Petroleum Ministry. The Deep Ocean Mission is under the Ministry of Earth Sciences and covers deep-sea technology and resources.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Why it matters

Cuts import dependence: India imports crude worth nearly USD 144 billion a year, and the scheme could cut imports by about ₹1 lakh crore annually.
Shares the risk of costly deepwater wells, which cost about USD 125–150 million each, and so draws private investment.
Builds domestic capability through seismic data, common infrastructure hubs and manufacturing zones.
Raises domestic oil and gas output and reduces import dependence, supporting energy security.
Common infrastructure and a manufacturing zone support Make in India and jobs.

Problems

Exploration is high-risk and slow: 5–10 years from block award to production, and success is not assured.
Existing fields decline by about 6–7% a year, so new finds must first offset this before output rises.
Deepwater work needs advanced technology and large capital, and private firms may stay cautious.
Deepwater and ultra-deepwater drilling is capital-intensive, technically difficult and risky, with uncertain finds.
Needs private and foreign investors, who depend on stable contract terms and clearances.

Way forward

Release seismic data openly and award blocks on time so investors can plan.
Keep fiscal terms stable and speed up clearances, including environmental ones for offshore work.
Pair exploration with cheaper deepwater technology and local manufacturing.
Keep contract and fiscal terms stable to draw investors and technology partners.
Use the National Data Repository and seismic data to cut exploration risk, with environmental safeguards.

Put in your answer

Import bill: India is the world's third-largest crude oil consumer with an import bill of about USD 144 billion a year.

Natural decline: Existing oil and gas fields decline naturally by about 6–7% a year, so continuous exploration is needed.

Acreage opened: Over 99% of earlier 'No-Go' areas were removed, opening over one million sq km of the EEZ for exploration.

Scheme outlay: Rs.84,084 crore up to FY 2030-31, a Central Sector Scheme.

Expected reserve addition: Over 600 MMTOE of reserve accretion is expected.

Earlier upstream reforms: The Government opened almost the entire offshore acreage, modernised the legal and contract framework and strengthened the National Data Repository.

Test yourselfMains

True or false?

1 of 11

Statements the way Prelims prints them. Say first, then see the fact.

1.Samudra Manthan is a Centrally Sponsored Scheme in which States share the cost with the Centre.
2.The scheme offers Government support of up to 50% of eligible drilling cost of deepwater exploration wells, subject to a cap of ₹675 crore per well.
3.The scheme provides for drilling of 60 deepwater exploration wells.
4.The largest share of the scheme's outlay is for offshore seismic data acquisition.
5.The scheme aims to raise India's domestic oil and gas production from around 62 MMTOE to 80 MMTOE annually, subject to exploration success.
6.Krishna-Godavari, Cauvery and Mahanadi are among the deepwater basins the release names as holding India's future hydrocarbon potential.
7.The scheme is administered by the Ministry of Petroleum and Natural Gas.
8.The scheme has an approved outlay running up to FY 2030-31.
9.The scheme is expected to add reserves of over 600 MMTOE.
10.The scheme is limited to shallow-water drilling and excludes deepwater and ultra-deepwater wells.
11.The scheme includes establishing an integrated Oil & Gas Manufacturing and Services Zone.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB, Ministry of Petroleum & Natural Gas, 1 Aug, 09:46 IST · Release 292486

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY)

GS3 Employment and formal jobsGS2 Welfare schemesPrelims and Mains

Why in news: On 1 August 2026, PM-VBRY completed one year of implementation, and PIB released a note on its progress and design.
What it is: PM-VBRY is a Ministry of Labour and Employment scheme that gives cash incentives for new formal jobs. It pays first-time employees and also supports employers who add jobs. It runs through EPFO registration and Direct Benefit Transfer.

Duration and outlay: The scheme runs from 1 August 2025 to 31 July 2027 with an outlay of ₹99,446 crore.
Target: It aims at jobs for over 3.5 crore people, including 1.92 crore first-time employees.
Part B: employers: Employers get up to ₹3,000 a month for two years for each additional employee retained at least six months. Manufacturing gets years three and four too.
Delivery: Incentives need UAN authentication through Face Authentication Technology on the UMANG App and go by DBT to Aadhaar-linked accounts.
Employee incentive: First-time employees can get up to ₹15,000.
Employer incentive: Employers get up to ₹3,000 per month for each additional employee.
Duration of employer benefit: Manufacturing employers get incentives for four years; employers in other sectors for two years.

Don’t confuse with EPFO vs ESIC: EPFO runs the provident fund and PM-VBRY. ESIC provides health and other insurance. Both join the outreach teams.

Don’t confuse with PM-VBRY vs ELI scheme: PM-VBRY is the name under which the release presents the employment-linked incentive scheme. Do not treat it as a separate scheme from the ELI idea.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Test yourself

True or false?

1 of 14

Statements the way Prelims prints them. Say first, then see the fact.

1.The scheme is administered through a framework linked to the Employees' Provident Fund Organisation.
2.The employee incentive is capped at ₹15,000 and equals one month's EPF wage.
3.The employee incentive is paid in a single lump sum on joining.
4.Employers receive up to ₹3,000 per month for each eligible additional employee, for two years in general.
5.Extended employer incentives for the third and fourth years apply to the services sector.
6.The scheme is implemented over a period from 1 August 2025 to 31 July 2027.
7.Incentives are available only after the UAN is authenticated using Face Authentication Technology on the UMANG App.
8.The scheme targets jobs for 1.92 crore people in total, all of them first-time employees.
9.PM-VBRY came into effect on 1 August 2025.
10.Under PM-VBRY, first-time employees are eligible for an incentive of up to ₹15,000.
11.Employers can receive up to ₹3,000 per month per additional employee under the scheme.
12.Employers in all sectors, including manufacturing, can claim incentives for two years only.
13.The scheme aims to incentivise more than 3.5 crore jobs over a two-year period.
14.About 1.92 crore of the targeted beneficiaries are expected to be first-time entrants into the workforce.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB Headquarters, 1 Aug, 11:12 IST · Release 292487

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

In the news

Left Wing Extremism in India

GS3 Internal securityGS2 GovernancePrelims and Mains

Why in news: On 1 August 2026, PIB published a note saying India became effectively free of Left Wing Extremism on 31 March 2026, with no LWE-affected district left.
What it is: Left Wing Extremism (Naxalism) is a Maoist armed movement that began in the Naxalbari uprising of 1967 in West Bengal. It sought power through armed revolution and fed on tribal alienation and poor state presence in forest areas. India countered it with security operations, special infrastructure and road schemes, surrender and rehabilitation policy, and tribal welfare.

Origin: LWE grew out of the Naxalbari uprising of 1967 in West Bengal, inspired by Maoist ideology.
CPI (Maoist): Several extremist groups merged into CPI (Maoist) in 2004.
National Policy and Action Plan: Approved in 2015 as a whole-of-government framework replacing the ad hoc approach.
Three-pronged strategy: The approach rested on Dialogue, Security and Coordination, under the Ministry of Home Affairs.
Affected districts: LWE-affected districts fell from 126 in 2014 to zero by March-April 2026.
Road schemes: 15,189 km of roads were built under the Road Requirement Plan and the Road Connectivity Project for LWE Affected Areas.
Constitutional basis: Police and Public Order are State subjects under the Seventh Schedule. The Centre only supplements State efforts.
Jan Suvidha Kendras: One-third of security camps in LWE-free areas are being converted into service centres; the first is at Netanar, Jagdalpur, Chhattisgarh.

Don’t confuse with Security Related Expenditure vs Special Infrastructure Scheme: SRE reimburses operational costs, training, surrender rehabilitation and ex gratia. SIS funds police infrastructure such as Fortified Police Stations and special forces.

Don’t confuse with Road Requirement Plan vs RCPLWEA: Both are LWE-specific road schemes; the release counts the combined 15,189 km under the two.

Don’t confuse with SRE vs SIS vs ACALWEMS: SRE funds operations, training and rehabilitation. SIS builds State special forces, intelligence and fortified police stations. ACALWEMS funds camps and helicopters for central agencies.

Don’t confuse with SCA vs SIS: Special Central Assistance fills public infrastructure gaps in LWE districts. The Special Infrastructure Scheme strengthens police and security.

Test yourself

True or false?

1 of 11

Statements the way Prelims prints them. Say first, then see the fact.

1.The Naxalite movement originated in the Naxalbari uprising of 1967 in West Bengal.
2.The National Policy and Action Plan to address LWE was approved in 2015.
3.The government's three-pronged strategy against LWE comprised Dialogue, Security and Coordination.
4.The number of LWE-affected districts fell from 126 in 2014 to zero by March-April 2026.
5.The Special Infrastructure Scheme under the LWE policy funds Special Forces, Special Intelligence Branches and Fortified Police Stations in affected States.
6.A dedicated vertical to disrupt Naxal financing was set up within the Enforcement Directorate.
7.The number of LWE-affected districts stood at 38 in April 2024 and fell to 70 by December 2025.
8.Districts categorised as 'Legacy & Thrust' are still classed as LWE affected and receive security support.
9.The Centre reimburses States for rehabilitation of surrendered LWE cadres under the Security Related Expenditure scheme.
10.Under the surrender policy, higher-ranked cadres receive an immediate grant of Rs 2.5 lakh and other cadres Rs 5 lakh.
11.The Special Infrastructure Scheme is a sub-scheme of the Modernization of Police Forces scheme.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB Headquarters, 1 Aug, 11:28 IST · Release 292488

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Economy

Tax devolution to States

GS2 Union-State fiscal relationsGS3 EconomyPrelims and Mains

Why in news: On 1 August 2026 the Union Government released an extra instalment of tax devolution of Rs 1,09,019 crore to States. It comes on top of the regular monthly devolution due on 10 August 2026.
What it is: Tax devolution is the share of the divisible pool of Union taxes that the Centre passes to States. Its percentage is set for five years on the Finance Commission's recommendation under Article 280 and Article 270 of the Constitution. The Centre normally releases it in monthly instalments.

Amount released: Rs 1,09,019 crore was released as an additional instalment on 1 August 2026.
Stated purpose: The release says it is meant to help States speed up capital and developmental spending.
Constitutional basis: Article 280 provides for the Finance Commission, which recommends how net tax proceeds are shared between the Union and States. Article 270 provides for the sharing of Union taxes.
Divisible pool: The divisible pool is gross tax revenue minus cess, surcharge and collection costs. Cess and surcharge are not shared with States.

Don’t confuse with Tax devolution vs grants-in-aid: Devolution is the States' share of the divisible pool of taxes. Grants-in-aid under Article 275 are separate transfers, which the Finance Commission also recommends.

Don’t confuse with Advance instalment vs extra share: An advance instalment only brings forward money States are already due. It does not raise their overall share set by the Finance Commission.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: Advance instalment of ₹1,09,019 crore is a lasting fiscal federalism topic, but routine releases rarely yield a question.

Source: PIB, Ministry of Finance, 1 Aug, 13:40 IST · Release 292495

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

State Disaster Response Fund (SDRF)

GS3 Disaster managementGS2 FederalismPrelims and Mains

Why in news: On 1 August 2026, Home Minister Amit Shah approved an advance release of ₹2,117.85 crore from the Central share of SDRF to six flood-hit States during the 2026 southwest monsoon.
What it is: The State Disaster Response Fund (SDRF) is the main fund a State uses for immediate relief after notified disasters such as floods, cyclones and droughts. It is set up under the Disaster Management Act, 2005, and the Centre contributes a share on the Finance Commission's recommendation. The Union Home Ministry releases the Central share in instalments.

Amount approved: A total of ₹2,117.85 crore of the Central share of SDRF was released in advance to flood-affected States.
Who approved: Home Minister Amit Shah approved the advance release; the Home Ministry is the nodal ministry for disaster management.
Relaxed documents: For Arunachal Pradesh, Assam, Gujarat and Maharashtra, an advance part of the first instalment was approved with documentary requirements relaxed.
IMCTs: Inter-Ministerial Central Teams assess flood damage; they were sent to Arunachal Pradesh and Assam, and one is being formed for Nagaland.
Legal basis: SDRF is constituted under Section 48(1)(a) of the Disaster Management Act, 2005.

Don’t confuse with SDRF vs NDRF (fund): SDRF is a State-level fund for relief, with a Central share. The National Disaster Response Fund (Section 46 of the DM Act) is a Central fund for severe disasters. The NDRF force is a separate specialised response force.

Don’t confuse with SDRF vs SDMF: SDRF funds immediate relief. The State Disaster Mitigation Fund funds mitigation projects.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

No practice question for this one; the card may still help an answer. Why: Advance SDRF release of ₹2,117.85 crore; disaster funding is a lasting topic, but this release adds little for a question.

Source: PIB, Ministry of Home Affairs, 1 Aug, 17:46 IST · Release 292511

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Quick facts

India and Rwanda held the first session of their Joint Trade Committee in New Delhi on 30-31 July 2026, setting up a periodic mechanism to review trade.
The Alluri Sitarama Raju International Airport at Bhogapuram, Vizianagaram (Andhra Pradesh) was inaugurated by the PM, along with a foundation stone for a semiconductor plant in Visakhapatnam.

Source: PIB, 1 Aug

What we left out: 32 of 39 releases

Congratulatory messages (4)
Appointments and takeovers (3)
Same issue as another release (6)
Routine train services (2)
Ceremonies and campaigns (7)
Speeches without a decision (3)
Routine service matters (1)
Routine seizures (2)
Internal company welfare (1)
Exam preparedness reviews (1)
Review meetings (1)
Routine ship launches (1)

Practise the day’s news

In UPSC’s formats, inside each issue. The answer and why come after you choose.

1Samudra Manthan - National Offshore Exploration SchemeMCQ · 11 true or false · Mains
2Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY)MCQ · 14 true or false · Mains
3Left Wing Extremism in IndiaMCQ · 11 true or false · Mains

Mains question of the day

15 marks · 250 words

The Union Cabinet has approved 'Samudra Manthan', a ₹84,084 crore National Offshore Exploration Scheme, which shares the risk of deepwater drilling with private operators. Discuss the main provisions of the scheme and examine the challenges in using it to reduce India's dependence on imported oil and gas.

From: Samudra Manthan - National Offshore Exploration Scheme

Write and get it marked

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