UPSC CSE Current Affairs — 29 May 2026

Cabinet approved SARTHAK-PDS scheme to modernise Public Distribution System with ₹25,530 crore outlay over five years until March 2031. Scheme integrates assistance for intra-state foodgrain transport and SMART PDS modernisation. Covers 81.35 crore NFSA beneficiaries through unified national databases, AI-enabled analytics, and automated grievance systems. Aims to improve transparency, reduce leakages, and strengthen last-mile delivery through standardised digital processes and ISO-certified protocols under Ministry of Consumer Affairs.

SARTHAK-PDS represents a paradigm shift in India's food distribution architecture, addressing decades-old inefficiencies in the world's largest food security programme. The scheme's integration of transport assistance with technological modernisation tackles two critical pain points: high operational costs for states and systemic leakages estimated at 10-15% of allocated grains. By creating unified databases and real-time monitoring, it enables predictive analytics for demand forecasting and supply chain optimisation. The AI-enabled dashboards allow state governments to track grain movement from godowns to Fair Price Shops, while automated grievance redressal reduces bureaucratic delays. For India's federal food security framework, this represents crucial coordination between Centre's procurement role through FCI and states' distribution responsibilities. The scheme's timing coincides with rising food inflation concerns and the need to optimise subsidy expenditure approaching ₹2 lakh crore annually. Success could serve as a template for digitising other welfare schemes, while failure would impact 81.35 crore beneficiaries dependent on subsidised grains under NFSA's AAY and PHH categories.

The Insolvency and Bankruptcy Code (IBC), enacted in 2016, completes ten years of operation in 2026. This landmark legislation consolidated multiple insolvency laws into a single framework, establishing National Company Law Tribunals (NCLT) for corporate insolvency and Debt Recovery Tribunals for individual bankruptcy. The code introduced time-bound resolution processes (180+90 days for corporates), prioritized creditor rights, and created the Insolvency and Bankruptcy Board of India (IBBI) as regulator. Recovery rates have improved significantly from pre-IBC levels of 26% to approximately 43% by 2024.

The IBC represents India's most significant judicial and economic reform in debt resolution. Before 2016, multiple overlapping laws created a fragmented system where debt recovery took 4-5 years with minimal recoveries. The IBC's unified approach establishes clear timelines, professional insolvency practitioners, and waterfall mechanisms for creditor payments. Its impact extends beyond debt recovery - it has reshaped corporate governance by making promoters accountable and enabling market-based solutions like acquisition by new management. The code's emphasis on going concern value over liquidation has preserved thousands of jobs while maximizing creditor recoveries. For the legal system, IBC has reduced judicial burden by creating specialized tribunals with commercial expertise. Economically, it has improved ease of doing business rankings and attracted foreign investment by providing predictable exit mechanisms. The ten-year journey shows evolution from initial teething problems to a mature framework that balances stakeholder interests. Recent amendments address homebuyer protection, MSME relief, and cross-border insolvency. The code's success is measured not just in recovery rates but in its deterrent effect - the mere threat of IBC proceedings has improved voluntary settlements and corporate discipline.