UPSC Mains Current Affairs for 23 April 2026

by Vajiram & Ravi - 23 April 2026

Vajiram & Ravi provides Daily UPSC Mains Current Affairs for 23 April 2026, tailored for aspirants. We cover all relevant news and events crucial for the exam, ensuring you stay updated & well-prepared.

Electricity Trading in India: How Electricity Trading in India Is Shifting to Market Coupling

April 23, 2026
Electricity Trading in India

Electricity Trading in India Latest News

  • India is moving toward restructuring its electricity trading system through proposed regulations on market coupling, issued by the Central Electricity Regulatory Commission (CERC). Market coupling aims to aggregate bids from all power exchanges and determine a single, uniform market-clearing price, replacing the current system where different exchanges set varying prices.
  • Traditionally, electricity in India is sold through long-term power purchase agreements (PPAs) between generators and distribution companies (DISCOMs). However, power exchanges enable short-term trading to manage demand fluctuations, where surplus electricity is sold at market-driven prices.
  • The proposed reform seeks to shift from this decentralised price discovery system to a unified one, with the Grid Controller of India designated as the central operator responsible for implementing market coupling and ensuring efficient price discovery.

CERC’s Market Coupling Proposal: Key Features and Developments

  • The Central Electricity Regulatory Commission has proposed amendments through the Power Market (Second Amendment) Regulations, 2026, building on the 2021 regulations where market coupling was first introduced.
  • Market coupling is a system where buy and sell bids from all power exchanges are combined to determine a single, uniform market-clearing price (MCP) for electricity.
  • It moves price discovery from individual exchanges to a central Market Coupling Operator (MCO) to optimize transmission, enhance price transparency, and maximize economic surplus.

Objectives of Market Coupling

  • Market coupling aims to:
    • Enable uniform price discovery across power exchanges 
    • Reduce price disparities between regions 
    • Provide a reliable benchmark price for policymakers 
    • Improve market efficiency and stability

Grid India as Market Coupling Operator (MCO)

  • The Grid Controller of India is proposed to act as the Market Coupling Operator (MCO), responsible for:
    • Operating and managing market coupling 
    • Creating a dedicated internal cell for this function 
    • Until formal rollout, power exchanges will continue price discovery.

Centralised Price Discovery Mechanism

  • MCO will aggregate bids from all power exchanges. 
  • Determine a single market-clearing price (MCP). 
  • Based on maximisation of economic surplus (buyer + seller benefits).
  • Ensures efficient and transparent pricing.

Power Market Coupling Procedure (PMCP)

  • Grid India will develop a detailed Power Market Coupling Procedure (PMCP) within six months. 
  • PMCP will define: 
    • Roles and responsibilities of MCO 
    • Standardised bid formats 
    • Design of the price discovery algorithm

Uniform Bid Collection and Transmission

  • All power exchanges will: 
    • Collect bids in a standardised format 
    • Share them with MCO via secure channels within defined timelines 
  • This ensures consistency and seamless integration across markets

Phased Expansion Across Market Segments

  • Market coupling will initially apply to: 
    • Day-Ahead Market (DAM) - DAM is a financial and physical electricity trading market where participants buy and sell power for delivery the following day. 
    • Real-Time Market (RTM) 
  • Gradually extended to other electricity market segments

Controversies and Legal Challenges

  • Insider Trading Allegations - Securities and Exchange Board of India (SEBI) flagged irregularities. Allegations of confidential information leak involving a CERC official. 
  • Industry Opposition - India Energy Exchange, holding over 90% Day-Ahead Market (DAM) share, opposed the move. 
  • Concern: loss of competitive advantage under uniform pricing.

Market Structure and Key Players

  • Dominant player: India Energy Exchange (IEX)
  • Other exchanges: 
    • Power Exchange India Limited 
    • Hindustan Power Exchange Ltd

Electricity Trading in India: Structure and Market Mechanisms

  • India’s electricity trading system is gradually shifting toward a more market-driven and flexible model, with short-term trading gaining importance alongside traditional long-term contracts.

Dual System: Long-Term Contracts and Short-Term Markets

  • Electricity trading in India operates through two main channels:
    • Long-term Power Purchase Agreements (PPAs): Typically 25-year contracts between generators and distribution companies 
    • Short-term markets: Facilitated through power exchanges to manage demand fluctuations and surplus supply 

Market-Based Price Discovery

  • Electricity is traded through bids (demand) and offers (supply). 
  • The market-clearing price (MCP) is determined where demand and supply intersect.
  • This system allows: 
    • Generators to optimise output and revenue 
    • Utilities to efficiently meet variable demand

Types of Power Markets Based on Timing

  • Spot Market
    • Real-Time Market (RTM): Near-immediate electricity delivery 
    • Intraday Market: Same-day trading, hours before delivery 
  • Day-Ahead Market (DAM)
    • Closed auctions for 15-minute time blocks 
    • Electricity delivered the next day 
  • Term-Ahead Market (TAM)
    • Contracts for delivery from 3 hours to 11 days ahead

Growth of Short-Term Electricity Markets

  • Volume increased from 65.90 Billion Units (2009-10) to 238.35 Billion Units (2024-25) 
  • Growth rate: 
    • Short-term transactions: 8.9% CAGR 
    • Total generation: 5.8% CAGR 
  • Share in total electricity generation rose from 9.6% to 13.03%

Source: IE

Electricity Trading in India FAQs

Q1: What is electricity trading in India?

Ans: Electricity trading in India involves buying and selling power through long-term PPAs and short-term markets on exchanges, where prices are determined through demand and supply bids.

Q2: What is market coupling in electricity trading in India?

Ans: Market coupling in electricity trading in India aggregates bids from all exchanges to determine a single uniform price, improving transparency, efficiency, and price discovery.

Q3: Why is electricity trading in India being restructured?

Ans: Electricity trading in India is being restructured to reduce price differences across exchanges, improve efficiency, and create a unified national electricity market.

Q4: What role does Grid India play in electricity trading in India?

Ans: Grid India will act as the Market Coupling Operator in electricity trading in India, aggregating bids and determining a uniform market-clearing price.

Q5: What are the types of markets in electricity trading in India?

Ans: Electricity trading in India includes real-time, intraday, day-ahead, and term-ahead markets, each based on delivery timelines and contract durations.

India Fertiliser Crisis: How India Fertiliser Crisis Deepens Amid Iran War and Supply Shocks

April 23, 2026
India Fertiliser Crisis

India Fertiliser Crisis Latest News

  • India is facing a sharp rise in fertiliser prices due to supply disruptions triggered by the US–Israel–Iran conflict and the closure of the Strait of Hormuz, a key global energy and trade route.
  • India’s latest urea import tender by Indian Potash Limited saw prices rise to $935–959 per tonne, nearly double the $508–512 per tonne recorded in February by Rashtriya Chemicals and Fertilizers.

Price Rise Across Key Fertilisers

  • DAP (Di-Ammonium Phosphate): Increased from ~$680–720 to ~$865–925 per tonne. 
  • Sulphur: Jumped from ~$300–550 to ~$900 per tonne. 
  • Ammonia: Rose from ~$435 to ~$850–900 per tonne. 
  • The surge affects both finished fertilisers and key raw materials, amplifying overall cost pressures.

Supply Chain Disruptions

  • Closure of the Strait of Hormuz has restricted global shipments.
  • Shutdown of facilities by QatarEnergy and Maaden due to Iranian strikes has reduced supply.
  • India is now sourcing from alternative markets like Indonesia, Malaysia, Morocco, and Jordan.
  • However, new suppliers must cater to multiple regions, including South America. This has increased competition for limited supplies, further pushing up prices.

Kharif Season Fertiliser Challenge in India Amid Supply Disruptions

  • The upcoming kharif season, beginning with the southwest monsoon in June, faces a serious fertiliser supply challenge, particularly for urea.
  • During this season:
    • Estimated kharif requirement: 19.4 million tonnes (mt)
    • Available stock (early April): ~5.5 mt
    • This indicates a significant shortfall ahead of peak sowing season.

Dependence on Imports and Gulf Region

  • India’s annual urea consumption: 39–40 mt 
    • Domestic production: 30–31 mt 
    • Imports: 9–10 mt 
  • Pre-war, ~40% imports came from Gulf Cooperation Council (GCC) countries. 
  • Over 60% of LNG (key input for urea production) sourced from the Gulf. 
  • Disruptions in the Gulf region have directly impacted both imports and domestic production.

Impact on Domestic Production

  • Normal monthly production: ~2.5 mt 
    • March output: ~1.5 mt 
    • April expected: ~1.7–1.8 mt 
  • Recovery to normal levels unlikely before June. 
  • LNG supply disruptions have reduced production capacity.

Logistical and Import Constraints

  • Shipment delays due to vessels being stuck near the Persian Gulf and Strait of Hormuz.
  • Deadlines for cargo loading extended due to availability and transit issues.
  • Both imports and transportation bottlenecks are worsening supply shortages.

Relative Position of Other Fertilisers

  • Better availability for: 
    • DAP (Di-Ammonium Phosphate) 
    • MOP (Muriate of Potash) 
    • SSP (Single Super Phosphate) 
    • Complex fertilisers (NPKS-based) 
  • The urea shortage remains the most critical concern.

Outlook: Kharif vs Rabi

  • Kharif season may be managed with difficulty 
  • Greater risk lies in the rabi season, where shortages could intensify

Addressing India’s Fertiliser Crisis: Alternatives and Policy Options

  • India’s fertiliser use is heavily skewed toward a few key products:
    • Urea: ~55% share of total consumption (70–71 mt annually) 
    • DAP (Di-Ammonium Phosphate): ~9–9.5 mt 
    • NPKS Complex Fertilisers: ~14.2 mt 
    • SSP (Single Super Phosphate): ~5–5.5 mt 
  • This dependence makes the system vulnerable to disruptions, especially in urea and DAP.

Shift Toward Alternative Fertilisers

  • Supply shortages—especially of ammonia—may lead to substitution with other fertilisers, such as:
    • TSP (Triple Super Phosphate): High phosphorus (46%), no nitrogen 
    • MAP (Mono Ammonium Phosphate): Balanced N and P content 
    • SSP: Lower phosphorus but contains sulphur 
  • This shift can help manage nutrient supply despite shortages.

Proposal: Fortified Fertilisers

  • Industry stakeholders suggest:
    • Coating urea or DAP with micronutrients (zinc, iron, boron, etc.) 
    • Adding secondary nutrients (sulphur, calcium, magnesium) 
    • Relaxing price controls on such fortified products 
  • Benefits:
    • Improved crop yields and nutrient efficiency 
    • Reduced need for separate micronutrient application 
    • Greater value for farmers despite higher prices

Role of Biostimulants in Reducing Fertiliser Dependence

  • Biostimulants are emerging as a sustainable alternative:
    • Derived from microbes, seaweed, and organic matter 
    • Do not supply nutrients directly but enhance nutrient uptake and efficiency 
  • Example: Phosphate-solubilising bacteria convert locked soil phosphorus into usable forms.

Improving Nutrient Use Efficiency

  • Fertilisers often have limited absorption by plants.
  • Biostimulants improve: 
    • Nutrient availability in soil 
    • Conversion into plant biomass and yield 
  • Can be blended with chemical fertilisers to reduce overall consumption.

Conclusion

  • The fertiliser crisis may accelerate a shift toward diversification, innovation, and efficiency, with alternatives like fortified fertilisers and biostimulants helping India reduce dependence on traditional inputs while sustaining agricultural productivity.

Source: IE

India Fertiliser Crisis FAQs

Q1: What is the India fertiliser crisis?

Ans: The India fertiliser crisis refers to rising fertiliser prices and supply shortages due to global disruptions, especially from geopolitical tensions affecting imports and production.

Q2: How has the Iran war affected the India fertiliser crisis?

Ans: The Iran war disrupted supply chains and closed key routes like the Strait of Hormuz, causing sharp increases in fertiliser and raw material prices.

Q3: Why is the India fertiliser crisis a concern for agriculture?

Ans: The India fertiliser crisis threatens kharif and rabi crops due to shortages of urea and rising costs, affecting farm productivity and food security.

Q4: What alternatives are suggested in the India fertiliser crisis?

Ans: Alternatives in the India fertiliser crisis include using TSP, MAP, SSP, fortified fertilisers, and biostimulants to improve efficiency and reduce dependency on urea and DAP.

Q5: How can India address the fertiliser crisis?

Ans: India fertiliser crisis can be managed through diversification of imports, boosting domestic production, promoting biostimulants, and improving nutrient use efficiency in agriculture.

Esports in India – Growth, Regulation and New Online Gaming Rules

April 23, 2026
Esports in India

Esports in India Latest News

  • The Government of India has notified new online gaming rules, introducing a regulatory framework and mandatory registration for esports platforms.

Esports in India: Concept and Growth

  • Esports refers to competitive video gaming where individuals or teams compete in organised tournaments, often for prize money and professional recognition. 
  • It is distinct from casual gaming due to its structured format, professional players, and spectator base.
  • The esports industry in India has witnessed rapid growth over the past decade. With increasing smartphone penetration, affordable internet, and a young population, India has emerged as a key market. 
  • The industry is estimated to be worth over $1-1.5 billion, with strong growth projections driven by streaming, sponsorships, and tournament ecosystems.
  • India has also seen the rise of professional esports athletes, gaming organisations, and large-scale tournaments. Platforms such as mobile gaming have significantly contributed to this expansion.

Types of Esports and Gaming Ecosystem

  • First, mobile esports dominate the Indian market due to accessibility. Games like battle royale and multiplayer strategy formats fall under this category.
  • Second, PC and console esports, which are more prevalent in global tournaments and require higher infrastructure.
  • Third, team-based competitive gaming, where structured leagues and franchises operate.
  • The ecosystem includes players, teams, tournament organisers, streaming platforms, sponsors, and audiences. 
  • Revenue streams include advertising, media rights, in-game purchases, and sponsorship deals.

Government Regulations and Policy Framework

  • Esports has been recognised as part of multi-sports events under the Ministry of Youth Affairs and Sports, distinguishing it from gambling or betting activities.
  • The Promotion and Regulation of Online Gaming Act, 2025, forms the basis of the current regulatory framework. It aims to balance innovation with user protection.
  • Key regulatory focus areas include:
    • Ensuring user safety and preventing addiction. 
    • Regulating financial transactions in gaming platforms. 
    • Preventing illegal betting and gambling activities. 
  • The government has adopted a light-touch regulatory approach, especially for non-risk gaming categories, to encourage industry growth while maintaining oversight.

News Summary

  • The government has notified administrative rules under the Online Gaming Act to regulate the online gaming sector.
  • A key feature is the creation of the Online Gaming Authority of India (OGAI), a six-member body under the Ministry of Electronics and Information Technology. It includes representatives from multiple ministries, ensuring inter-sectoral oversight. 
  • The authority will function as the central regulator and will oversee compliance, safety standards, and grievance redressal mechanisms. 

Key Provisions and Compliance Requirements

  • The rules mandate gaming companies to implement operational and behavioural safeguards to protect users from financial and psychological harm. 
  • A significant provision is that registration for esports platforms is mandatory, while other online games may not require registration unless identified as high-risk. 
  • Gaming companies must also establish grievance redressal systems, allowing users to escalate complaints to the regulator if unresolved within a specified time. 
  • Banks and financial institutions are required to verify whether gaming platforms are legally permitted before enabling transactions. They must restrict services to non-compliant entities. 

Approach to Regulation and Emerging Challenges

  • The government has emphasised a regulation-light approach, allowing most non-risk games to operate freely without mandatory registration. 
  • At the same time, provisions have been included to introduce age classification systems and codes of practice in the future to address issues such as gaming addiction. 
  • Illegal betting platforms and offshore gaming sites continue to pose challenges. Authorities have acknowledged difficulties in regulating such platforms, especially when accessed through VPNs.

Source: TH | BW

Esports in India FAQs

Q1: What is esports?

Ans: Esports refers to organised competitive video gaming involving professional players and tournaments.

Q2: Which law governs online gaming in India?

Ans: The Promotion and Regulation of Online Gaming Act, 2025 governs the sector.

Q3: What is the role of OGAI?

Ans: The Online Gaming Authority of India regulates gaming platforms and ensures compliance.

Q4: Is registration mandatory for all online games?

Ans: No, registration is mandatory mainly for esports and high-risk games.

Q5: What are the key risks associated with online gaming?

Ans: Major risks include financial loss, addiction, and exposure to illegal betting platforms.

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