Daily Current Affairs- 2nd June 2025

Daily Current Affairs- 2nd June 2025

NDA Makes History as First Batch of 17 Female Cadets Graduates

In the News: On May 30, 2025, the National Defence Academy (NDA) in Pune celebrated a historic milestone as its first cohort of 17 female cadets graduated alongside 319 male counterparts during the 148th Passing Out Parade. This event marked a significant step toward gender inclusivity in India's armed forces.

Key Points:

• Historic Graduation: The 17 female cadets, who joined the NDA in 2022 following a Supreme Court directive allowing women to appear for the NDA entrance exam, completed three years of rigorous military and academic training.
• Passing Out Parade: The ceremony was held at the Khetrapal Parade Ground and reviewed by General V.K. Singh, former Army Chief and current Governor of Mizoram. Academy Cadet Captain Udayveer Singh Negi led the parade.
• Academic Achievements: Cadet Shriti Daksh topped the Bachelor of Arts stream, while Cadet Ishita Sharma, from a non-military background, was appointed Division Cadet Captain, reflecting the diverse backgrounds and excellence of the female cadets.
• Integration and Training: The female cadets underwent the same training regimen as their male counterparts, participating in all activities without segregation, symbolizing a fully integrated and gender-neutral environment at the NDA.
• Future Assignments: Post-graduation, the cadets will proceed to their respective service academies for a year of pre-commission training: the Indian Military Academy (IMA) in Dehradun, the Indian Naval Academy (INA) in Ezhimala, and the Air Force Academy (AFA) in Dundigal. 

India Launches Unit-1 of Ghatampur Thermal Power Project

In the News: On May 30, 2025, Prime Minister Narendra Modi inaugurated Unit-1 (660 MW) of the Ghatampur Thermal Power Project in Kanpur Nagar district, Uttar Pradesh. This marks a significant advancement in India's energy infrastructure, particularly in the thermal power sector.

• Project Overview: The Ghatampur Thermal Power Project is a joint venture between NLC India Limited (51%) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) (49%), operating under Neyveli Uttar Pradesh Power Ltd (NUPPL). The project comprises three supercritical thermal power units of 660 MW each, totaling an installed capacity of 1,980 MW. The total project cost is estimated at ₹21,780.94 crore.
• Commissioning Timeline: Unit-1 commenced commercial operations in December 2024 and was officially dedicated in May 2025. The remaining two units are scheduled for commissioning by the financial year 2025–26.
• Power Allocation: A Power Purchase Agreement (PPA) has been signed to allocate 1,487.28 MW (75.12%) of the generated power to Uttar Pradesh. The remaining 492.72 MW (24.88%) is earmarked for Assam, contingent upon the transfer of a 20% equity share of UPRVUNL in NUPPL to the Government of Assam.
• Operational Features: The plant utilizes supercritical boilers with a boiler efficiency of 88.81%, enhancing fuel efficiency and reducing emissions. It includes a captive coal block with a production capacity of 9 million tonnes per annum (MTPA), ensuring a steady fuel supply. The coal stockyard has a capacity to store 10.165 lakh metric tonnes (LMT) of coal, sufficient for 30 days of operation at full load for all three units. The plant's raw water reservoirs have a combined capacity of approximately 46 lakh cubic meters, split between two compartments. A 765 kV Gas Insulated Switchgear (GIS) system is employed for efficient power evacuation. 

Lok Sabha Speaker Nominates Three MPs to Press Council of India

In the News: On May 27, 2025, Lok Sabha Speaker Om Birla nominated three Members of Parliament to the Press Council of India (PCI):

• Sambit Patra (Bharatiya Janata Party, Puri, Odisha)
• Shri Naresh Ganpat Mhaske (Shiv Sena, Thane, Maharashtra)
• Shri Kali Charan Munda (Indian National Congress, Khunti, Jharkhand)

These appointments aim to enhance the PCI's role in upholding press freedom and journalistic standards in India.

Key Points:

• Press Council of India (PCI): Established under the Press Council Act of 1978, the PCI is a statutory, quasi-judicial body responsible for preserving the freedom of the press and maintaining and improving the standards of newspapers and news agencies in India.
• Composition: The Council comprises a Chairman and 28 members, including:
  • 13 working journalists (6 editors and 7 other journalists)
  • 6 representatives from newspaper management (2 each from big, medium, and small newspapers)
  • 1 representative from news agencies
  • 5 Members of Parliament (3 nominated by the Lok Sabha Speaker and 2 by the Rajya Sabha Chairman)
  • 3 nominees representing the fields of education, law, and literature, selected by the University Grants Commission (UGC), Bar Council of India, and Sahitya Akademi, respectively.
• Recent Nominations: Prior to these appointments, Rajya Sabha Chairman Jagdeep Dhankhar nominated BJP members Sudhanshu Trivedi and Brij Lal to the Council.
• Significance: The inclusion of members from diverse political backgrounds—BJP, Shiv Sena, and Congress—ensures a balanced representation of viewpoints within the Council. This diversity is crucial for the PCI's mandate to address issues pertaining to press freedom and ethical journalism.
• Tenure: Members of the Press Council serve a term of three years. 

RBI’s Draft Guidelines for Gold Loans and the Finance Ministry’s Push for Small Borrower Exemption

In the News: In April 2025, the Reserve Bank of India (RBI) released draft guidelines aimed at tightening regulations on gold loans to enhance risk management and standardize lending practices. However, the Union Finance Ministry has recommended exemptions for small borrowers and a deferred implementation timeline to mitigate potential adverse effects on low-income individuals.

Key Points:

• RBI’s Proposed Guidelines:
  • Loan-to-Value (LTV) Ratio: Capped at 75% for consumption gold loans, including those offered by Non-Banking Financial Companies (NBFCs).
  • Collateral Restrictions: Loans permitted only against gold jewellery and bank-issued coins; primary gold forms like bars and bullion are excluded.
  • Valuation Standards: Mandatory standardized procedures for assessing gold purity, with valuations based on 22-carat gold prices.
  • Ownership Verification: Borrowers must provide proof of ownership or a declaration if original purchase documents are unavailable.
  • Loan Purpose Monitoring: Differentiation between consumption and income-generating loans, with specific monitoring requirements for each.
  • Renewal and Repledge Restrictions: Prohibition on concurrent loans using the same collateral and restrictions on loan renewals without full repayment.
  • Collateral Return Timeline: Mandate for lenders to return pledged gold within seven working days post-loan closure, failing which a compensation of ₹5,000 per day is applicable.
• Rationale Behind RBI’s Proposals:
  • A significant surge in gold loan disbursements, with outstanding amounts reaching ₹1.78 lakh crore by January 2025, marking a 76.9% year-on-year increase.
  • Rising Non-Performing Assets (NPAs) in the gold loan segment, with banks and NBFCs reporting NPAs of ₹2,040 crore and ₹4,784 crore respectively as of December 2024.
  • Identified irregularities in lending practices, including inadequate loan appraisal mechanisms and lack of transparency in gold auctions post-default.
• Finance Ministry’s Recommendations:
  • Exemption for Small Borrowers: Proposed exclusion of loans below ₹2 lakh from the stringent provisions to ensure timely and accessible credit for low-income individuals.
  • Deferred Implementation: Suggested postponing the enforcement of new guidelines to January 1, 2026, allowing lenders adequate time for field-level adjustments and compliance. 

RBI Annual Report 2024–25: Key Highlights of India’s Economic and Financial Landscape

In the News: The Reserve Bank of India (RBI) released its Annual Report for the fiscal year 2024–25, providing a comprehensive overview of the nation's economic performance, financial stability, and policy initiatives.

Key Points:

• Economic Growth and Inflation: India's real GDP growth moderated to 5% in FY25, down from 9.2% in the previous year, yet it remained the fastest-growing major economy globally. Headline inflation eased by 73 basis points to 4.6% in FY25, with the RBI expressing confidence in sustaining inflation below the 4% target in FY26, aided by favorable monsoon forecasts and declining global commodity prices.
• Financial Performance: The RBI's net income surged by 5% to ₹2.69 lakh crore, driven by a 33% increase in foreign exchange transaction gains and higher interest income from foreign securities. A record surplus of ₹2.69 lakh crore was transferred to the central government, supported by an adjustment in the economic capital framework, setting the contingency risk buffer at 6% ±1.5%.
• Balance Sheet Expansion: The RBI's balance sheet expanded by 2% to ₹76.25 lakh crore, with significant increases in gold holdings (52.09%), domestic investments (14.32%), and foreign investments (1.70%).
• Currency Management and Digital Initiatives: The RBI ceased printing ₹2, ₹5, and ₹2000 notes, with the ₹500 note now comprising 40.9% of all notes in circulation. Coin usage, particularly ₹1, ₹2, and ₹5 denominations, saw a steady rise. The digital rupee (e₹) witnessed a 334% increase in value, reaching ₹1,016.5 crore, with the RBI expanding pilots for both retail and wholesale transactions and exploring cross-border payment applications.
• Digital Payment Innovations: The RBI introduced the 'UPI Circle' feature, allowing delegated payments, and increased transaction limits for UPI123Pay and UPI Lite, enhancing digital payment adoption across diverse user segments. 

Ukraine’s Operation Spider’s Web: A Game-Changer in Drone Warfare

In the News: On June 1, 2025, Ukraine executed a bold and unprecedented drone assault, codenamed Operation Spider’s Web, targeting five Russian military airbases deep within Russian territory. This meticulously planned operation marked a significant shift in modern warfare, showcasing Ukraine's innovative use of drone technology and strategic planning.

Key Points:

• Strategic Targets: The operation focused on five key Russian airbases: Olenya, Dyagilevo, Ivanovo Severny, Belaya, and Ukrainka. These bases housed significant assets of Russia's Long-Range Aviation forces, including strategic bombers like the Tu-95, Tu-22M3, and A-50 aircraft.
• Scale of the Attack: A total of 117 drones were deployed, resulting in the destruction or damage of approximately 41 Russian military aircraft. Ukrainian officials estimate that this accounts for about 34% of Russia's strategic bomber fleet, with damages estimated at $7 billion.
• Innovative Tactics: The drones were covertly transported into Russia concealed within wooden structures mounted on trucks. Once positioned near the targeted airbases, the drones were launched remotely, catching Russian defences off guard. This "Trojan Horse" strategy allowed Ukraine to bypass traditional air defence systems effectively.
• Technological Advancements: The operation utilized First-Person View (FPV) drones equipped with AI-assisted navigation systems, enabling precise strikes on high-value targets. The integration of AI played a crucial role in flight stability and targeting, enhancing the effectiveness of the drones.
• Extended Reach: Targets included airbases located up to 4,300 kilometers from Ukraine, marking the longest-range strike by Ukrainian forces to date. This demonstrated Ukraine's capability to project power deep into Russian territory.
• Strategic Implications: The success of Operation Spider’s Web highlighted a significant vulnerability in Russia's defence infrastructure and showcased the potential of low-cost, improvised unmanned systems to achieve strategic impact. It also underscored a shift in warfare paradigms, emphasizing the growing importance of drone technology in modern conflicts.
• Political Context: The operation coincided with peace talks in Istanbul, complicating diplomatic efforts. Ukrainian President Volodymyr Zelenskyy emphasized that the operation was independently executed by Ukrainian forces, signaling a message of resilience and self-reliance. 

17th Nomadic Elephant Exercise: India–Mongolia Joint Military Drill

In the News: From May 31 to June 13, 2025, India and Mongolia are conducting the 17th edition of their joint military exercise, Nomadic Elephant, in Ulaanbaatar, Mongolia. This annual exercise alternates between the two nations and focuses on enhancing interoperability for counter-insurgency and counter-terrorism operations under a United Nations mandate.

Key Points:

• Exercise Overview: Nomadic Elephant is a bilateral military exercise initiated in 2004, aimed at strengthening defence cooperation between India and Mongolia. The exercise facilitates the sharing of best practices and experiences in counter-insurgency and counter-terrorism operations, particularly in semi-urban and mountainous terrains.
• Participating Forces: The Indian Army is represented by 45 personnel from the Arunachal Scouts battalion. The Mongolian Armed Forces have deployed a 150-member Special Forces unit for the exercise.
• Training Activities: The exercise includes a range of training modules such as endurance training, reflex shooting, room intervention, small team tactics, and rock craft training. This edition also incorporates aspects of cyber warfare to enhance the complexity and realism of the training scenarios.