Government Schemes: April to June 2026
Government schemes are the most predictable topic in UPSC current affairs. A scheme launched in Q2 2026 will appear in the next Prelims. The question format is consistent: match the scheme to its ministry, its objective, or its target beneficiary. This guide covers every scheme launched, expanded, or significantly restructured this quarter, with the static syllabus connection for each.
1. PM Surya Ghar: Muft Bijli Yojana Phase II (April 2026)
What the scheme is
Launched originally in February 2024, the PM Surya Ghar scheme provides subsidised rooftop solar panels to households. Phase I targeted 1 crore households with a subsidy of up to ₹78,000 per household for a 3 kW system. Households could access collateral-free loans for the remaining cost.
Phase II, approved by the Cabinet on April 3, 2026, expands the scheme significantly.
What Phase II changes
| Parameter | Phase I | Phase II |
|---|---|---|
| Target households | 1 crore | 3 crore |
| Subsidy for 3 kW system | ₹78,000 | ₹94,000 |
| New category added | None | Community solar for apartment complexes and rental housing |
| DISCOM incentive | ₹50 per kW per month for 5 years | ₹75 per kW per month for 7 years |
| Battery storage subsidy | Not included | ₹25,000 per household for battery storage systems |
| Total outlay | ₹75,021 crore | ₹1,62,000 crore |
Why Phase II matters
The expansion addresses three problems that Phase I revealed. First, apartment dwellers and renters, who constitute approximately 35 percent of urban households, were excluded because they do not own their rooftops. The community solar provision allows multiple households to share a single installation on a common rooftop or nearby land. Second, the intermittency problem: solar power is generated during the day but peak household consumption is in the evening. The battery storage subsidy is designed to solve this by allowing households to store daytime generation for evening use. Third, DISCOMs were reluctant to facilitate rooftop solar because every kilowatt of rooftop generation reduces their revenue from grid electricity sales. The increased incentive partially compensates for this revenue loss.
The energy transition context
India's updated NDC under the Paris Agreement commits to 50 percent non-fossil fuel electricity capacity by 2030. Rooftop solar is essential to this target. Centralised solar parks (Bhadla, Pavagada, Rewa) face land acquisition challenges and transmission losses. Rooftop solar is decentralised, does not require additional land, and reduces transmission loss because generation and consumption are co-located.
2. National Manufacturing Mission (NMM) Phase II: Green Manufacturing (May 2026)
Background
The National Manufacturing Mission was announced in the Union Budget 2025-26 to strengthen India's manufacturing sector across five focus areas: ease of doing business, workforce skilling, technology adoption, MSME support, and quality standards. Phase I focused on establishing the institutional framework and launching sector-specific Production Linked Incentive (PLI) schemes.
Phase II, approved in May 2026, introduces a green manufacturing component that ties industrial policy to climate commitments.
Key provisions
| Provision | Details |
|---|---|
| Green PLI top-up | Existing PLI beneficiaries in textiles, steel, cement, and chemicals receive an additional 2-3% incentive if they reduce carbon intensity by 20% within 3 years |
| Circular Economy Fund | ₹5,000 crore fund to support MSMEs in adopting waste-to-resource technologies. Covers recycling, remanufacturing, and industrial symbiosis |
| Carbon Border Adjustment Mechanism (CBAM) preparation | A dedicated cell within the Ministry of Commerce to help Indian exporters comply with the EU's CBAM, which imposes a carbon price on imports of steel, aluminium, cement, fertilisers, and electricity |
| Green hydrogen for industry | Three pilot projects for using green hydrogen in steel manufacturing, ammonia production, and oil refining. Total allocation: ₹1,200 crore |
Why this matters for UPSC
India's manufacturing sector contributes approximately 17 percent to GDP. The government's target is 25 percent. Achieving this while meeting climate commitments requires decarbonising manufacturing growth , a decoupling that no developing country has yet achieved at scale.
The EU's Carbon Border Adjustment Mechanism (CBAM) is the most significant external pressure. From 2026, EU importers of steel, aluminium, cement, fertilisers, and electricity must purchase CBAM certificates equivalent to the carbon price that would have been paid if the goods were produced under EU carbon pricing rules. For Indian exporters, this means their products become more expensive in the EU market unless they reduce their carbon intensity. The NMM Phase II is India's domestic response to this external trade pressure.
The trade-and-climate debate
CBAM raises a fundamental question that UPSC tests: is it fair for developed countries to impose carbon costs on developing country exports when those developed countries industrialised by burning coal for two centuries without paying a carbon price? India has raised this at the WTO and at COP meetings. The Indian position is that CBAM violates the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) enshrined in the UNFCCC. The EU's position is that CBAM is a trade measure, not a climate measure, and that the WTO's non-discrimination principle applies, not CBDR.
3. PM-SHRI Expansion and NEP Implementation Milestones (June 2026)
What PM-SHRI is
PM Schools for Rising India (PM-SHRI) was launched in September 2022 to upgrade 14,500 existing schools into model schools that showcase the National Education Policy (NEP) 2020's recommendations. The scheme provides each school with approximately ₹2 crore over five years for infrastructure, teacher training, digital tools, and curriculum reform.
What the June 2026 expansion adds
| Component | Details |
|---|---|
| Additional schools | 7,500 new PM-SHRI schools sanctioned, bringing the total to 22,000. Priority to aspirational districts and border areas |
| NEP curriculum milestone | All PM-SHRI schools have now transitioned to the 5+3+3+4 curricular structure. The old 10+2 structure has been fully replaced in these schools |
| Language policy implementation | PM-SHRI schools now offer instruction in the mother tongue or local language up to Grade 5, and preferably up to Grade 8, as recommended by NEP 2020 |
| Digital infrastructure | All 22,000 PM-SHRI schools connected to optical fibre under the BharatNet programme. Each school equipped with a smart classroom and a computer lab |
| Assessment reform | PM-SHRI schools will pilot the PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development) framework in 2027, ahead of the national rollout in 2028 |
Why this matters for UPSC
The NEP 2020 is the most significant education policy reform since the 1986 National Policy on Education. PM-SHRI is its implementation vehicle. Key NEP provisions that UPSC tests:
- 5+3+3+4 curricular structure: Foundational (3-8 years), Preparatory (8-11), Middle (11-14), Secondary (14-18). Replaces 10+2
- Three-language formula: Mother tongue or regional language up to Grade 5. States have flexibility. No language is imposed
- PARAKH: A national assessment centre that will set standards for student assessment across all school boards
- Gross Enrolment Ratio target: 100% by 2030 for school education
4. Other schemes this quarter
| Scheme | Date | Ministry | Key Provision | Prelims Fact |
|---|---|---|---|---|
| NAMO Drone Didi Phase II | April 2026 | Agriculture | 20,000 additional drones to women SHGs for agricultural spraying. Phase I covered 15,000 SHGs. Training for drone pilot certification included | Drones for agriculture. Women SHGs. Ministry of Agriculture |
| One Nation One Ration Card (ONORC) completion | May 2026 | Food and Public Distribution | ONORC achieved 100% inter-state portability. All 36 states and UTs are now connected. 86 crore beneficiaries can access PDS from any ration shop in India | ONORC is a technology-enabled PDS reform. Aadhaar-linked. Inter-state portability |
| National Green Hydrogen Mission: SIGHT Phase II | May 2026 | MNRE | Second tranche of incentives for green hydrogen production. Target: 5 million metric tonnes annual production by 2030. Incentive: ₹50/kg for first 3 years, reducing thereafter | Green hydrogen. Strategic Interventions for Green Hydrogen Transition (SIGHT). Ministry of New and Renewable Energy |
| Khelo India Scheme expansion | June 2026 | Youth Affairs and Sports | 500 new Khelo India centres in tribal and border areas. Indigenous sports (Mallakhamb, Kalaripayattu, Gatka) included in Khelo India University Games | Khelo India. Indigenous sports. Tribal areas |
| National Health Mission: ASHA incentive increase | June 2026 | Health | ASHA workers' monthly incentive raised from ₹3,000 to ₹5,000. Insurance cover increased to ₹5 lakh. Free health check-ups for ASHAs and their families | ASHA workers. Community health. National Health Mission |
Dive deeper into each scheme: PM Surya Ghar Phase II · National Manufacturing Mission Green Phase II · PM-SHRI school expansion