Current Affairs, 14 March 2026

Approvals under SBFAP

288 contracts worth ₹19,748 crore, covering 456 vessels, have in-principle approval.

Disbursement

₹620.57 crore has been paid to 23 shipyards for 204 vessels built and delivered.

SBDS

Approved September 2025, it offers credit risk coverage to Indian shipyards and viability gap funding as capital assistance to brownfield yards for capacity expansion.

September 2025 package

It includes SBFAS, the Maritime Development Fund (MDF) and SBDS.

Don’t confuse with SBFAP vs SBDS: SBFAP pays assistance on ships built and delivered. SBDS gives credit risk coverage and capital assistance for yard capacity expansion.

Don’t confuse with SBFAS vs SBFAP: SBFAS is the scheme in the September 2025 package. SBFAP is the earlier policy under which the contracts were approved.

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.

1. 2025Mains GS3 · Q12Rationale, achievements, and improvements of the PLI scheme for manufacturing.
2. 2026Prelims Q35Statements on Sagarmala's port-led growth goals, outcomes, and Sagarmala 2.0 aims.
3. 2026Prelims Q24How Vizhinjam port reduces reliance on foreign ports and shifts maritime policy.

UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.

Ownership clarified

Ownership now covers subsidiaries, holding companies and other subsidiaries of the holding company of the entity that sets up the plant.

Verification period

Captive status is verified for the whole financial year. For the first or last year of ownership, a part of the year may be used.

26 percent rule in AoP

A member of an Association of Persons holding 26 percent or more ownership is exempt from the proportionate consumption requirement. All its consumption counts as captive.

CSS and AS pending verification

Cross-Subsidy Surcharge and Additional Surcharge are not levied pending verification if users file the prescribed declaration. If the plant fails verification, they become payable with carrying cost at the base Late Payment Surcharge rate.

Grievance redressal

The Appropriate Government will constitute a Grievance Redressal Committee for disputes arising from verification decisions.

Don’t confuse with Cross-Subsidy Surcharge vs Additional Surcharge: Both are charged on open access consumers. CSS compensates for the loss of cross-subsidy from paying consumers. AS covers the discom's stranded fixed costs of power purchase commitments.

Don’t confuse with Electricity Rules vs Electricity Act: The Act of 2003 is Parliament's law. The Rules are delegated legislation made by the Centre under it, so they can be amended by notification.

Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.

Tarun Plus

Newest category, started in 2024. It is for borrowers who repaid earlier Tarun loans and have a stable business record.

Three-tier structure

MUDRA Ltd., Member Lending Institutions (SCBs, RRBs, SFBs, NBFCs, MFIs) and borrowers. MUDRA gives refinance support.

Credit guarantee

CGFMU, run by NCGTC, guarantees PMMY loans and lowers lenders' credit risk.

Lenders

Loans are given by Member Lending Institutions: scheduled commercial banks, NBFCs and MFIs.

Loan categories

Shishu up to Rs 50,000; Kishor above Rs 50,000 to Rs 5 lakh; Tarun above Rs 5 lakh to Rs 10 lakh; Tarun Plus above Rs 10 lakh to Rs 20 lakh.

Tarun Plus eligibility

Only borrowers who earlier took and repaid a Tarun loan can get Tarun Plus, introduced in 2024-25.

Jan Samarth portal

Jan Samarth hosts 15 credit-linked schemes with self or assisted application journeys.

MUDRA Ltd role

MUDRA Ltd. refinances lenders and does not lend directly to borrowers.

Don’t confuse with MUDRA Ltd. vs lending institutions: MUDRA Ltd. refinances. Banks, NBFCs and MFIs are the ones that lend to borrowers.

Don’t confuse with CGFMU vs PMMY: PMMY is the lending scheme. CGFMU is a separate guarantee fund that backs its loans.

Don’t confuse with PMMY vs Stand-Up India: PMMY gives loans up to Rs 20 lakh to non-farm micro enterprises. Stand-Up India gives Rs 10 lakh to Rs 1 crore loans to SC/ST and women first-time entrepreneurs.

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.

1. 2020Mains GS2 · Q17Evaluate SHGs' role in microfinance for asset creation, income security, women's empowerment
2. 2016Mains GS3 · Q3Is PMJDY necessary to bring unbanked poor into institutional finance? Justify
3. 2013Mains GS2 · Q11Discuss legitimacy and accountability of SHGs and microfinance outfits
4. 2023Mains GS3 · Q1Comment on government policies for manufacturing and MSME share in GDP growth.
5. 2016Prelims Q73What is the aim of the Pradhan Mantri MUDRA Yojana?
6. 2026Prelims Q93Which statements about M1xchange's MSME financing role are correct?

UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.

Export value

Services exports are estimated at USD 348.4 billion for April-January FY26.

Unilateral APA

A Unilateral APA is an agreement between a taxpayer and CBDT fixing the price of international transactions in advance. The Budget aims to conclude IT services APAs within 2 years.

Don’t confuse with Unilateral vs bilateral APA: A unilateral APA is between a taxpayer and the tax authority of one country. A bilateral APA also involves the other country's tax authority.

Don’t confuse with Safe harbour vs APA: Safe harbour is a pre-set margin accepted by the tax authority without case-by-case review. An APA is a negotiated agreement for a specific taxpayer.

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.

1. 2014Mains GS3 · Q1Reasons for India's services growth over industry; can India develop without industry
2. 2014Mains ESSAY · Q4Whether tourism can be India's next big thing
3. 2010Prelims Q18Objectives of SEZ Act 2005, including promotion of services exports
4. 2020Prelims Q52Whether India's services exports exceed services imports, among other trade statements

UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.

MSE-CDP progress

606 projects approved since inception; 364 completed and 242 ongoing.

MSE-CDP nature

A demand-driven Central Sector Scheme. State Governments send proposals based on common needs of existing clusters.

SFURTI approvals

513 clusters approved since 2015-16 with committed central assistance of ₹1,332.95 crore.

TEAM scheme

Trade Enablement and Marketing scheme helps micro and small enterprises onboard onto ONDC through assistance to Seller Network Participants. Half of beneficiaries are to be women-owned.

Don’t confuse with MSE-CDP vs SFURTI: MSE-CDP serves existing modern micro and small enterprise clusters with CFCs and infrastructure. SFURTI serves traditional industry and artisan clusters, mainly rural.

Don’t confuse with MSE-CDP vs TEAM: MSE-CDP builds physical common facilities. TEAM supports digital marketing via ONDC onboarding.

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.

1. 2023Mains GS3 · Q1Comment on government policies for MSME-led manufacturing share in GDP.
2. 2019Mains GS1 · Q6Can regional resource-based manufacturing strategy promote employment in India?

UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.

Legal status

KVIC is a statutory body under the Ministry of MSME.

Parent Act

KVIC was established under the KVIC Act, 1956, which replaced the earlier Khadi and Village Industries Board.

Beneficiaries

About 4.32 lakh spinners and weavers benefit from the wage increase.

NSIC MoU

KVIC signed an MoU with NSIC in September 2025 to improve market access for MSME units under both bodies' schemes.

Don’t confuse with KVIC vs NSIC: KVIC is a statutory body for khadi and village industries. NSIC is a government company under the MSME Ministry that supports small enterprises with marketing, credit and technology.

Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.

1. 2019Mains GS1 · Q6Whether regional resource-based manufacturing can promote employment in India.
2. 2023Mains GS3 · Q1Government policies for MSME manufacturing share in GDP, and their effectiveness.
3. 2016Prelims Q73MUDRA Yojana's aim: formalising small entrepreneurs' financing.

UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.