Why in news?

The Indian rupee's sharp depreciation over the past one-and-a-half years has transformed it from an overvalued currency into one that is now more undervalued than even the Chinese yuan — potentially boosting India's trade competitiveness.

What’s in Today’s Article?

• Recent Rupee Movement
• Understanding Effective Exchange Rates
• From Overvaluation to Undervaluation: The Data
• More Competitive Than the Yuan
• Conclusion

Recent Rupee Movement

• Hardening global oil prices, following renewed US-Iran hostilities, pushed the rupee past 96-to-the-dollar on July 14, where it stayed until July 24.
• A pause in daily strikes since has strengthened the rupee to around 95.9, as Brent crude eased below $85 per barrel after surging past $95 on July 23.
• The rupee hit an all-time low of 96.96-to-the-dollar on May 20, while Brent crude had crossed $126.4 per barrel on April 30.
• RBI Governor Sanjay Malhotra noted the rupee has become undervalued and could appreciate once the West Asia situation stabilises, as seen in past episodes of external shock-driven volatility.

Understanding Effective Exchange Rates

• NEER (Nominal Effective Exchange Rate) and REER (Real Effective Exchange Rate) are the key indices used to measure whether a currency is over- or under-valued.
• These indices track the rupee's movement against a basket of 40 currencies of countries accounting for about 88% of India's trade flows, with 2015-16 as the base year (value = 100).
• Currency weights are derived from each country's share in India's total foreign trade — similar to how the Consumer Price Index (CPI) weighs commodities by consumption share.
• NEER captures the rupee's external value against this basket without factoring in inflation.
• REER adjusts NEER for inflation differentials between India and its trading partners — making it the true measure of a currency's value.
• If Indian prices rise faster than trading partners' even with a stable exchange rate, REER rises, making Indian products less competitive globally.

From Overvaluation to Undervaluation: The Data

• In November 2024, the REER of 108.03 meant the rupee was over 8% overvalued in real terms.
• By June 2026, the REER of 91.26 represents an 8.7% "real" weakening — confirming the rupee has moved from overvaluation to undervaluation.
• Notably, the REER stayed above 100 until July 2025, marking a clear and relatively recent shift.
• Future appreciation toward "fair value" (REER of 100) depends on sustainable easing of West Asia tensions, reopening of commercial shipping lanes, and absence of new geopolitical energy shocks or US trade actions.

More Competitive Than the Yuan

• An independent measure — the Real Broad Effective Exchange Rate (RBEER), compiled by the Federal Reserve Bank of St. Louis — corroborates this trend.
• RBEER compares a country's currency value against 64 trade partners, using 2020 as the base year.
  • The rupee's RBEER fell from an all-time high of 106.1 (November 2024) to 90.15 (June 2026).
  • In November 2024, the yuan's RBEER (92.16) made it more undervalued and competitive than the rupee.
  • By June 2026, the yuan's RBEER (92.24) was higher than the rupee's 90.15 — meaning the rupee is now a more competitive currency than the yuan.

Why This Matters?

• A more undervalued currency can theoretically:
  • Boost the price competitiveness of Indian exports in global markets.
  • Make domestic manufacturing more competitive against imports.
• However, whether these theoretical benefits materialise in practice remains to be seen, as several other factors — global demand conditions, supply chains, and trade policy — will also shape outcomes.

Conclusion

The rupee's transition from an overvalued to an undervalued currency — now more competitive than even the yuan — marks a significant shift with potential trade advantages for India.

Yet, translating this currency competitiveness into tangible export growth and stronger domestic manufacturing will depend on global geopolitical stability and India's ability to capitalise on the opportunity.

Why in the News?

• The Union Environment Ministry has reissued, for the seventh time in over a decade, its draft notification proposing an ecologically sensitive area (ESA) across the Western Ghats, after the previous draft lapsed without being finalised due to continuing differences with the six states.

What’s in Today’s Article?

• About Western Ghats (Background, Gadgil Committee, Kasturirangan Committee, etc.)
• News Summary (7^th Draft, Key Proposals, Core Controversy, etc.)

About the Western Ghats

• The Western Ghats is a mountain range running parallel to the western coast of the Indian peninsula, spread over approximately 1,500 km across six states: Gujarat, Maharashtra, Goa, Karnataka, Kerala & Tamil Nadu.
• Ecological Significance

• A UNESCO World Heritage Site, recognised for its outstanding universal value.
• It is older than the Himalayas in geological age.
• Home to thousands of species of flora and fauna, many of which are endemic and found nowhere else.
• Influences the monsoon pattern of peninsular India.
• Acts as a critical water source, giving rise to major rivers such as the Godavari, Krishna, and Cauvery.
• Hosts 39 components of protected areas, including national parks, wildlife sanctuaries, and reserved forests.

About the Gadgil Committee (2011)

• Background
  • The dispute over protecting the Western Ghats dates back to 2011, when the Western Ghats Ecology Expert Panel (WGEEP), chaired by ecologist Madhav Gadgil, submitted its report recommending stringent conservation measures.
• Key Recommendations

• The entire mountain chain of the Western Ghats should be treated as an Ecologically Sensitive Area (ESA).
• The region should be divided into Ecologically Sensitive Zones (ESZ) 1, 2, and 3, based on the level of ecological sensitivity.
• Strict regulation of developmental activities, including a ban on mining, quarrying, and highly polluting industries in ESZ-1.
• Phased decommissioning of chemical and polluting industries operating in sensitive zones.
• Promotion of sustainable agriculture and organic farming practices.
• A bottom-up, decentralised governance model involving local communities and Gram Sabhas in conservation decisions.

• Reaction
  • The Gadgil report faced strong opposition from states, particularly Kerala and Karnataka.

• Strict restrictions would adversely affect agriculture, plantations, and infrastructure development.
• It would displace local populations and impact livelihoods dependent on natural resources.
• The recommendations were seen as anti-development by state governments.
• States argued that the report did not adequately consider the socio-economic realities of the region.
• Despite the ecological merit of the report, its political unacceptability led the Centre to seek a more balanced approach.

About the Kasturirangan Committee (2012)

• Background
  • Following the widespread opposition to the Gadgil report, the Centre constituted a High Level Working Group (HLWG) in 2012, chaired by K. Kasturirangan, to review the earlier recommendations and propose a more balanced framework.
• Key Recommendations
  • Only 37% of the Western Ghats should be designated as an ESA, significantly lower than the 64% suggested by the Gadgil report.
  • A complete ban on mining, quarrying, sand mining, and thermal power plants in the ESA.
  • Strict regulation of highly polluting industries within the eco-sensitive zone.
  • Exclusion of inhabited regions and agricultural plantations from the purview of the ESA, making the report more pro-farmer in its approach.
  • Regulation of hydel power projects and large construction activities.
  • Promotion of sustainable development alongside conservation.
• Criticism
  • States argued that the report used an "erroneous method" that included many villages under ESA despite having only rubber plantations and no forest land.
  • The report was accused of including ecologically non-sensitive areas under ESA while leaving out some ecologically sensitive ones.
  • Kerala appointed its own state-level committee under Oommen V. Oommen, which recommended further exclusions of inhabited regions and plantations.
  • States continued to object to the restrictions on infrastructure and developmental activities.

News Summary: The 7th Draft Notification

• The ESA issue has been pending since August 2011, when the Gadgil Committee first recommended notifying a no-go zone to save the fragile terrain.
• The first draft notification was issued in March 2014, but the proposal has remained on paper since then.
• The ministry subsequently issued five more drafts in 2015, 2017, 2018, 2022, and 2024 before coming out with the latest seventh one in July 2026.

Key Features of the 7th Draft

• The Union Environment Ministry notified the seventh draft on July 27, 2026, after the previous draft lapsed on July 27, 2026, without being finalised. The draft will remain open for public objections for 60 days before the Centre considers issuing a final notification.
• The latest notification retains the proposed ESA at 56,825.7 sq. km, spread across the six states.
• Prohibited Activities
  • Mining, quarrying, and sand mining within the ESA.
  • New thermal power plants.
  • Certain highly polluting industries.
  • Large construction projects.
• Regulated Activities
  • Hydel power generation would be regulated.
  • Agriculture and plantation activity will not be affected due to the provisions in the draft notification.
  • The actual area will be finalised based on the recommendations of the states, the views of stakeholders, and the expert committee.

No Substantive Changes

• A comparison of the latest draft with the previous notification issued in July 2024 shows no substantive changes in the notified area, state-wise extent, or regulatory provisions.
• The list of villages proposed for inclusion also remains unchanged.
• New Provision for Phased Implementation
  • Like the sixth draft, the seventh one proposes a provision where the final ESA notification can be taken up "in a phased manner either state-wise or through a combined single notification." This move may help speed up the process without waiting for all six states to be on board simultaneously.

The Core Controversy

• Conservation vs. Development
  • The central tension in the Western Ghats debate is between ecological conservation and developmental aspirations:
  • Conservationists argue that the fragile ecosystem needs strict protection to prevent disasters like landslides, biodiversity loss, and water scarcity.
  • States and local communities fear that stringent regulations would stifle economic growth, restrict agriculture, and displace populations.
• Scientific Demarcation vs. Political Acceptability
  • The Gadgil report was scientifically rigorous but politically unacceptable due to its strictness.
  • The Kasturirangan report was a politically diluted compromise but was criticised for scientific inaccuracies in demarcation.
  • Neither approach has succeeded in finding a balance acceptable to all stakeholders.
• Federal Dynamics
  • The Centre wants a uniform framework for ecological protection across the Western Ghats.
  • States demand flexibility to determine the extent of regulation based on local conditions.
  • The lack of consensus has left the entire issue in limbo for over a decade.
• Recurring Natural Disasters
  • The repeated landslides in Wayanad and other parts of the Western Ghats have reinforced the urgency of ecological protection:
  • Experts have linked the disasters to deforestation, unplanned construction, and climate change.
  • The failure to notify the ESA has allowed environmentally hazardous activities to continue unchecked.
  • Each disaster revives the debate but has not yet led to a final decision.

Context:

• The Reserve Bank of India (RBI) is navigating a complex macroeconomic environment marked by persistent inflationary pressures, a strengthening US dollar, portfolio capital outflows, and depreciation of the rupee.
• While its primary mandate remains price stability under the inflation-targeting framework, it has adopted calibrated measures to stabilise the foreign exchange market by encouraging capital inflows and managing exchange rate volatility.

Why the Rupee Matters?

• India is a highly open economy, with trade in goods and services accounting for 45.8% of GDP.
• Exchange rate movements directly affect import costs (especially crude oil and fertilisers), inflation, export competitiveness, external debt servicing and overall economic growth.
• The rupee’s depreciation is part of a broader global trend, as currencies such as the Japanese yen, Indonesian rupiah and South Korean won have also weakened against the strengthening US dollar. 

Drivers of Rupee Depreciation:

• Portfolio capital outflows:
  • Exchange rate movements are largely influenced by net capital flows, particularly Foreign Portfolio Investment (FPI).
  • Since 2025, the interest rate differential between Indian and US government securities has narrowed, reducing India's attractiveness for global investors.
• Global risk aversion:
  • Despite India's improved sovereign credit profile following the S&P sovereign rating upgrade, investors shifted towards US assets due to heightened global uncertainty and trade tensions.
  • This "flight to safety" intensified pressure on the rupee and reduced India's foreign exchange reserves during May–June.

RBI’s Strategy - Managing Volatility, Not a Fixed Exchange Rate:

• Rather than defending a particular exchange rate, the RBI has -
  • Intervened selectively to reduce excessive volatility.
  • Avoided committing to a fixed value of the rupee.
  • Ensured that despite higher volatility during 2021–25, the rupee has remained relatively stable in 2026 compared to several Asian currencies.
• This reflects India's managed float exchange rate regime.

Measures to Attract Capital Inflows:

• Revival of FCNR(B) deposits: Drawing lessons from the 2013 Taper Tantrum, the RBI has liberalised Foreign Currency Non-Resident [FCNR(B)] deposits by:
  • Absorbing most hedging costs,
  • Making deposits more attractive for banks and overseas investors.
• Outcome: Around USD 17.4 billion flowed in during the initial months. By comparison, the 2013 scheme mobilised USD 26 billion over its entire duration.
• Concerns:
  • FCNR(B) deposits are temporary liabilities.
  • Large-scale withdrawals at maturity (2–3 years) could recreate pressure on the rupee, as witnessed during 2016.

Encouraging Foreign Investment in Government Securities:

• The RBI has expanded investment avenues by -
  • Including more long-term government securities under the Fully Accessible Route (FAR).
  • Supporting fiscal incentives such as capital gains tax exemptions, and withholding tax concessions.
• Recent trends:
  • FPIs purchased government securities worth ₹21,652 crore under FAR in June.
  • However, inflows weakened in July, highlighting the uncertain nature of global capital movements.

Forex Market Operations:

• The RBI has also relied on forward contracts for calibrated intervention. Since October 2023, it has become a net seller of US dollars in the forward market.
• Market perception:
  • The build-up of forward positions has been interpreted as signalling a weaker outlook for the rupee.
  • Restrictions on domestic participation in Non-Deliverable Forward (NDF) markets to curb speculation were viewed negatively by market participants.

The Structural Policy Debate:

• A larger policy question remains unresolved -
  • Option 1 - Greater capital account openness: Liberalise capital flows similar to economies such as South Korea. Benefits - Deeper financial markets, higher foreign investment, and better liquidity.
  • Option 2 - Maintain capital controls: Retain safeguards against volatile capital movements. Benefits - Protect financial stability, reduce vulnerability to sudden capital flight, and preserve monetary policy autonomy.
• The RBI must balance these competing objectives while ensuring macroeconomic stability.

Key Challenges Ahead:

• Sustaining foreign capital inflows amid global uncertainty.
• Managing depreciation without exhausting foreign exchange reserves.
• Preventing inflation arising from imported commodities.
• Addressing risks associated with the eventual maturity of FCNR(B) deposits.
• Balancing exchange rate stability with an independent monetary policy.

Conclusion:

• The RBI should pursue a calibrated mix of prudent monetary policy, diversified and stable long-term capital inflows, adequate foreign exchange reserve buffers, and gradual capital account liberalisation while strengthening domestic financial markets.
• Simultaneously, structural reforms to enhance export competitiveness, improve external sector resilience, and reduce dependence on volatile portfolio flows will be crucial for ensuring a durable exchange rate and macroeconomic stability.

Context

• Recurring fire tragedies in Lucknow, Delhi, Bhiwadi, and Virudhunagar expose a deep crisis in India's urban governance.
• These disasters are largely preventable and result from illegal construction, weak enforcement, political interference, corruption, and poor institutional accountability.
• India possesses adequate laws and modern technology, yet ineffective implementation continues to endanger citizens.
• The challenge is not the absence of regulations but the failure to enforce them.

Urban Fire Tragedies: Symptoms of Governance Failure

• The Lucknow fire, which claimed 15 lives, reflected systemic governance failures rather than an isolated accident.
• Similar incidents across multiple cities reveal common patterns:
  • Unauthorised commercial establishments operating in residential areas.
  • Lack of fire safety norms, emergency exits, and evacuation systems.
  • Persistent building code violations despite repeated notices.
  • Delayed administrative action and poor regulatory oversight.
• Such tragedies highlight that urban disasters are primarily man-made.

Root Causes of India's Urban Governance Crisis

• Weak Regulatory Enforcement
  • India has comprehensive laws governing building regulations, fire safety, and land-use planning, but enforcement remains inconsistent.
  • Illegal establishments continue functioning because violations often attract little or no punishment.
• Political Interference and Patronage
  • Political patronage, vote-bank politics, and administrative pressure frequently protect illegal constructions.
  • Regulatory decisions are sometimes reversed, weakening the authority of enforcement agencies and encouraging further violations.
• Corruption in Urban Administration
  • Corruption allows unauthorised buildings, encroachments, and unsafe commercial activities to flourish.
  • Weak oversight creates incentives to ignore violations for personal gain, undermining public trust and urban safety.
• Fragmented Institutional Structure
  • Urban responsibilities are divided among municipal corporations, development authorities, public works departments, fire services, and other agencies.
  • This fragmented governance creates an accountability vacuum, where responsibility for failures becomes diffused.
• Failure of Accountability Mechanisms
  • Urban disasters are often followed by inquiry committees, investigations, and suspension of junior officials.
  • However, systemic reforms remain rare, while higher administrative and political accountability is seldom established. As a result, similar tragedies continue to recur.

Challenges in Effective Implementation of Urban Governance

• Technology Exists but Governance Does Not
  • India has advanced technologies such as Satellite Imagery, GIS, Drones, Artificial Intelligence, digital property databases, and real-time monitoring systems capable of detecting illegal constructions and land-use violations.
  • The principal challenge is the lack of political and administrative commitment to use these tools for strict enforcement.
• The Human Face of Urban Disasters
  • Despite institutional failures, ordinary citizens, police personnel, and volunteers repeatedly demonstrate exceptional courage by rescuing victims and assisting emergency operations.
  • While such acts reflect strong civic spirit, urban safety cannot depend on individual heroism alone.
• Structural Weaknesses in Urban Local Governance
  • Although the 74th Constitutional Amendment aimed to strengthen Urban Local Bodies (ULBs), implementation remains incomplete.
  • Municipal bodies continue to face limited financial autonomy, inadequate professional capacity, and excessive dependence on State governments, restricting effective urban management.
• Broader Urban Governance Challenges
  • The same governance deficit is evident in recurring urban flooding in Bengaluru and Mumbai, unsafe civic infrastructure in Noida, and public health concerns in Indore.
  • These problems cut across political parties, indicating that the crisis is institutional rather than partisan.

Way Forward

• Strengthen Urban Local Bodies through greater administrative, financial, and functional autonomy.
• Establish clear accountability for regulatory failures at both administrative and political levels.
• Recruit qualified urban planners, engineers, and fire safety professionals to improve professional urban management.
• Use technology-driven compliance through AI, GIS, drones, and digital property records.
• Strengthen anti-corruption measures through transparent approvals, audits, and independent inspections.
• Improve inter-agency coordination by integrating urban governance institutions.
• Conduct regular fire safety audits, disaster preparedness exercises, and risk-based inspections.
• Promote citizen participation in reporting violations and monitoring civic services.

Conclusion

• India's recurring urban disasters demonstrate that the country does not suffer from a shortage of laws but from a shortage of effective governance.
• Illegal construction, regulatory failure, political interference, corruption, and fragmented institutions continue to threaten urban safety.
• The true measure of governance lies not in the number of projects launched but in the number of lives protected.
• Building safe, resilient, and accountable cities requires strong institutions, fearless enforcement, empowered local governments, and sustained political commitment to uphold the rule of law.

Context

• India's tiger conservation programme is one of the world's greatest wildlife success stories.
• Since the launch of Project Tiger (1973), sustained political commitment, scientific management, and habitat protection have increased the tiger population from 1,411 (2006) to 3,682 (2022), making India home to over 70% of the world's wild tigers.
• However, this achievement has created a new challenge as nearly 35–40% of tigers now live outside Tiger Reserves, increasing human-tiger conflict.
• The Tigers Outside Tiger Reserves (TOTR) initiative seeks to promote safe coexistence through a landscape-based conservation approach.

India's Remarkable Tiger Conservation Success

• India's protected area network has expanded from 9 Tiger Reserves covering 18,278 sq km to 58 reserves spanning 84,488 sq km, accounting for about 2.6% of the country's land area.
• This success is attributed to Project Tiger, the National Tiger Conservation Authority (NTCA), stronger anti-poaching measures, scientific monitoring, and improved habitat management.
• Healthy breeding populations and connected wildlife corridors have enabled the steady recovery of the species.

Emerging Challenge: Tigers Beyond Protected Areas

• As territorial carnivores, tigers require large home ranges. Habitat saturation within reserves has encouraged dispersal into reserve forests, villages, agricultural fields, and other human-dominated landscapes.
• This has increased livestock depredation, accidental encounters, rescue operations, and public anxiety.
• Conservation outside protected areas has become essential for ensuring both ecological stability and human safety.

Tigers Outside Tiger Reserves (TOTR): A New Conservation Paradigm

• The TOTR initiative, launched by the Ministry of Environment, Forest and Climate Change, shifts conservation from protected-area management to a broader landscape-based model.
• It aims to conserve tigers outside reserves, minimise conflict, protect livelihoods, and strengthen science-based governance.
• Implemented initially as a pilot project, it covers 40 forest divisions across nine States selected through the All India Tiger Estimation (2022).

Key Features of TOTR

• Conflict Mitigation and Field Protection
  • This pillar focuses on strengthening Rapid Response Teams, communication systems, rescue infrastructure, emergency coordination, and early warning systems to improve preparedness during conflict situations.
• Promoting Long-Term Coexistence
  • The programme promotes community participation, awareness campaigns, timely compensation, and partnership with local communities.
  • Treating villagers as conservation partners is crucial for building trust and ensuring peaceful coexistence.

Role of Technology in Modern Conservation

• TOTR encourages the use of camera traps, GPS-enabled monitoring, drones, and Artificial Intelligence (AI) for surveillance, monitoring tiger movement, conflict prediction, and evidence-based decision-making.
• However, technology must be supported by efficient institutions and trained personnel for effective implementation. 

Institutional and Governance Challenges

• The success of TOTR depends on strengthening institutional capacity.
• Major challenges include delayed compensation, inadequate rescue infrastructure, shortage of trained forest staff, and weak coordination among agencies.
• Building public confidence requires transparent compensation, skilled veterinarians, efficient rescue teams, and continuous engagement with local communities.

Constitutional and Legal Framework

• Tiger conservation is supported by Article 48A and Article 51A(g) of the Constitution, along with the Wild Life (Protection) Act, 1972, the Biological Diversity Act, 2002, and the National Wildlife Action Plan (2017–2031).
• These provide the legal foundation for balancing biodiversity conservation with sustainable development.

Way Forward

• India should strengthen wildlife corridors, expand community-based conservation, ensure prompt compensation.
• Also, India should build institutional capacity, integrate modern technology with local knowledge, improve inter-state coordination, and promote adaptive management based on scientific monitoring.
• Conservation policies must recognise that humans and tigers increasingly share the same landscapes.

Conclusion

• India's tiger recovery demonstrates the effectiveness of scientific conservation, strong governance, and community support.
• The TOTR initiative marks a significant shift from reserve-centric protection to coexistence-based conservation.
• With sustained political commitment, capable institutions, and active public participation, India can become a global model for balancing biodiversity conservation, human safety, and sustainable development.

About Atal Beemit Vyakti Kalyan Yojana (ABVKY):

• It is an unemployment relief scheme for workers covered under the Employees' State Insurance (ESI) Act.
• It was introduced on July 1, 2018. It is being implemented by the Employees' State Insurance Corporation (ESIC). 
• It provides temporary financial assistance to insured employees who lose their jobs, helping them meet expenses while searching for fresh employment.
• Benefits: The scheme provides relief to the extent of 50% of the average daily earnings during the previous four contribution periods (total earnings during the four contribution periods/730) to be paid up to a maximum of 90 days of unemployment once in the Insured Person’s lifetime.
• The Eligibility Criteria to Avail Benefit under the ABVKY is as under:
  • The employees must be covered under Section 2(9) of the ESI Act of 1948;
  • During the period of the claim for relief, the Insured Person (IP) must be unemployed;
  • The IP must have worked in insurable employment for at least two years.
  • The IP’s contribution should not be less than 78 days during each of the four contribution periods.
  • The contribution in respect of him should have been paid or payable by the employer.
  • The IP’s Aadhaar and bank account must be linked.
  • Relief under ABVKY shall not be admissible in the following circumstance:
    • During lockout.
    • Strike resorted to by the employees declared illegal by the competent authority.
    • Voluntary abandonment of employment/voluntary retirement/premature retirement.
    • Less than two years of contributory service.
    • On attaining the age of superannuation.
    • Convicted (i.e. punished for a false statement) under the provisions of Section 84 of the ESI Act read with Rule 62 of the ESI (Central) Rule
    • On being re-employed elsewhere during the period he/she is in receipt of relief under ABVKY.
    • Dismissal/termination under disciplinary action.
    • On the death of the IP.
• The claim for relief under ABVKY may be submitted by the claimant any time after rendering unemployed, but not later than one year from the date of unemployment.

About Museum Grant Scheme:

• It is a Central Sector Scheme of the Ministry of Culture, Government of India.
• It was launched in 2013.
• It provides financial assistance for setting up new museums and strengthening and modernizing existing ones at regional, state, and district levels.
• The scheme also promotes digitization of museum collections to make images and catalogues accessible online and focuses on capacity building of museum professionals.
• It supports institutions such as Central and State Governments, Public Sector Undertakings, Societies, Autonomous Bodies, Local Bodies, Academic Institutions, and Trusts registered under the Societies Act.
• The scheme also aims to develop at least 1 Central/State Government Museum located in the State Capital each year.
• Museums are categorised into three groups under the scheme, with distinct funding norms according to ownership and status.
  • Category I: Existing renowned museums of the Central or State Governments located in the state capitals.
  • Category II: Central or State Govt. owned museums, including museums of Public Sector Undertakings (PSUs)
  • Category III: Projects of Societies, Autonomous bodies, local bodies, Public Sector Undertaking, Academic Institutions and Trusts registered as a society under the Indian Societies Act of 1860 (XXI) or a similar legislation of the state governments or as a Public Trust under any law.
• Funding Pattern:
  • The scheme allocates up to Rs 15 crore for Category I museums, up to Rs 10 crore for establishing new Category II museums, and up to Rs 8 crore for the development of existing Category II
  • For Category III museums, funding of up to Rs 5 crore is available to set up new museums, and up to Rs 4 crore for improvement of existing ones.
  • Dedicated financial assistance is available for digitisation of museum collections and for training museum professionals.
  • Category I museums can receive up to Rs 50 lakh, while Category II museums are eligible for assistance up to Rs 25 lakh for these purposes.