Daily Current Affairs · Last published 5 October 2026
UPSC Prelims Current Affairs: 5 October 2026
A CAG audit flags over ₹1,200 crore in Odisha mining irregularities while the RBI's MPC weighs a repo rate hike this week.
38 stories · sorted subject-wise for Prelims
CAG flags ₹1,210.82 crore mining irregularities in Odisha amid MMDR row
The Comptroller and Auditor General (CAG) has detected mining irregularities worth ₹1,210.82 crore in Odisha, flagging unlawful coal production by Mahanadi Coalfields Limited (MCL) beyond or without valid environmental clearance, short levy of royalty and other mining dues, and mining without a valid consent to operate at an iron and manganese mine. The audit found that MCL's Kalinga opencast project in Talcher extracted over 1.15 crore tonnes of coal after its environmental clearance had effectively expired in October 2021, valued at ₹956.56 crore, while nine MCL mines under-assessed royalty and other dues by ₹92.39 crore for not including sizing charges in the coal price. The findings come amid a row over the Centre's Mines and Minerals (Development and Regulation) Act amendments restricting states' power to levy additional cess on mineral-bearing land.
Background. The CAG is a constitutional authority under Articles 148 to 151 of the Constitution that audits the accounts of the Union and state governments, with its reports placed before Parliament or the state legislature. Mahanadi Coalfields Limited, the audited entity in this report, is a subsidiary of the central public sector undertaking Coal India Limited.
For Prelims, remember
- The CAG's reports on the accounts of a state are submitted to the Governor, who causes them to be laid before the state legislature, under Article 151(2) of the Constitution.
- Mahanadi Coalfields Limited is a subsidiary of Coal India Limited, which holds Maharatna status among central public sector enterprises.
- Environmental clearances granted under the EIA Notification, 2006 are time-bound; the Union Environment Ministry's January 2021 exemption excluded the pandemic period of 1 April 2020 to 31 March 2021 from validity calculations for previously granted clearances.
PM-SETU scheme completes one year, 850 ITIs identified for upgrade
The PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) scheme completed one year on 4 October 2026, with the government reporting that 850 of the targeted 1,000 Government Industrial Training Institutes have been identified for upgrade and 14 ITI clusters have been approved for Strategic Investment Plans worth ₹3,446 crore. The scheme upgrades 1,000 Government ITIs through a Hub-and-Spoke model of 200 Hub ITIs and 800 Spoke ITIs, and separately funds capacity augmentation at five National Skill Training Institutes through National Centres of Excellence. The National Steering Committee has also approved the scheme's transition from a pilot phase to a nationwide rollout across all 200 identified ITI clusters.
Background. PM-SETU was launched on 4 October 2025 to modernise Government Industrial Training Institutes, which function under the Craftsmen Training Scheme and are administered by state governments while the Directorate General of Training under the Ministry of Skill Development and Entrepreneurship sets national curricula and standards.
For Prelims, remember
- PM-SETU has a total outlay of ₹60,000 crore, split as ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry.
- Under the scheme's Special Purpose Vehicle model for upgraded ITI clusters, the Anchor Industry Partner holds 51 per cent ownership, with the Centre and State governments holding 24.5 per cent each.
- The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme covering fields such as artificial intelligence, robotics, green hydrogen and semiconductor technology.
Jaishankar meets Admiral Paparo, discusses maritime security cooperation
External Affairs Minister S. Jaishankar held talks on 4 October 2026 with Admiral Samuel J. Paparo, Commander of the United States Indo-Pacific Command, on advancing the India-US security partnership and strengthening maritime cooperation in the Indo-Pacific. US Ambassador to India Sergio Gor was also present at the meeting. Admiral Paparo is on a five-day visit to India from 3 to 8 October 2026, during which he is expected to hold talks with Indian military and government officials on shared security priorities including digital transformation, emerging technologies, regional strategic stability and defence energy resilience.
Background. The United States Indo-Pacific Command, headquartered in Hawaii, oversees American military operations and partnerships across the Indo-Pacific region. India and the United States elevated defence ties through the Major Defense Partnership, and both countries cooperate with Australia and Japan through the Quad on maritime security and a free and open Indo-Pacific.
For Prelims, remember
- Admiral Samuel J. Paparo is the Commander of the United States Indo-Pacific Command.
- The Quad grouping comprises India, the United States, Australia and Japan.
- Admiral Paparo's visit to India ran from 3 to 8 October 2026, during which he was scheduled to hold talks on maritime security, digital transformation and emerging technologies.
RBI's Monetary Policy Committee meets amid expectations of a repo rate hike
The Reserve Bank of India's Monetary Policy Committee met from 5 to 7 October 2026 to decide on the repo rate, with its decision due on 7 October. The RBI had held the repo rate unchanged at 5.25 per cent across its four preceding policy reviews after cumulative cuts of 125 basis points in 2025, but rising retail and wholesale inflation, higher energy prices and rate increases by the US Federal Reserve, the Bank of Japan and other major central banks have built expectations of a hike. A Business Standard poll found eight of ten economists expecting a 25 basis point increase to 5.50 per cent, which would be the RBI's first rate hike since February 2023.
Background. The RBI's Monetary Policy Committee is a six-member body, three from the RBI and three external members appointed by the Union government, that decides the policy repo rate under the flexible inflation-targeting framework set out in the RBI Act, 1934, as amended in 2016, with a target of keeping retail inflation at 4 per cent within a band of plus or minus 2 per cent.
For Prelims, remember
- The RBI's Monetary Policy Committee has six members, headed by the RBI Governor, with three officials from the RBI and three external members appointed by the Union government.
- The RBI last raised the repo rate in February 2023; it had cut the rate by a cumulative 125 basis points through 2025 before holding it at 5.25 per cent across its four preceding reviews.
- The RBI's inflation target under its flexible inflation-targeting mandate is 4 per cent, with a tolerance band of plus or minus 2 percentage points.
GST Council set to consider scrapping officers' arrest powers
The GST Council is likely to consider, at its meeting on 7 October 2026, a proposal to remove GST officers' power to arrest a person under Section 69 of the Central GST Act and require judicial authorisation instead, as part of the next phase of the government's Next-Generation GST reforms. The proposal would also raise the threshold for launching criminal prosecution for GST offences from Rs 1 crore to Rs 5 crore and narrow prosecution provisions so they do not apply to routine disputes over classification, valuation or input tax credit. The Council is separately expected to take up a wider package of process reforms including easier registration, faster refunds, simpler input-tax-credit procedures and changes to show-cause notices and penalties.
Background. Section 69 of the Central Goods and Services Tax Act, 2017 currently empowers a GST Commissioner to authorise an officer to arrest a person where there are reasons to believe specified offences, generally involving tax evasion or fraudulent input tax credit above Rs 1 crore, have been committed. The proposed changes are part of the government's wider push, including the Jan Vishwas (Amendment of Provisions) Act, 2026, to decriminalise economic and regulatory offences.
For Prelims, remember
- Section 69 of the Central Goods and Services Tax Act, 2017 currently allows a Commissioner to authorise the arrest of a person for specified GST offences.
- GST, implemented from 1 July 2017, currently has GST Council-approved slabs including a 5 per cent merit rate and an 18 per cent standard rate following the September 2025 rate rationalisation, with a 40 per cent rate for select luxury and demerit goods.
- The Jan Vishwas (Amendment of Provisions) Act, 2026 is a central law aimed at decriminalising a range of provisions across multiple statutes.
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September 2026 current affairs compilation
214 stories and 175 practice MCQs, sorted subject-wise, with a PDF and answer key.