Prelims Pinpointer: Semicon 2.0, India-UK DCC, Kudankulam Breach & More
India Semiconductor Mission 2.0 (Semicon 2.0)
Economy- The government launched Semicon 2.0 to position India as a competitive player in the global semiconductor value chain.
- A budgetary provision of ₹1,000 crore was made for FY 2026-27 under Semicon 2.0.
Indigenous Manufacturing
Production of semiconductor equipment, chemicals, gases, and materials within India.
Full-Stack IP Development
End-to-end Indian semiconductor intellectual property for secure chip solutions.
Research and Skills
Industry-led research and training centres for applied R&D and advanced manufacturing skills.
Supply Chain Resilience
Strengthening domestic and global semiconductor supply chains amid geopolitical uncertainties.
- Semicon 1.0 was approved in December 2021 with an incentive outlay of ₹76,000 crore, offering up to 50% fiscal support.
- As of December 2025, 10 projects worth ₹1.60 lakh crore were approved across six states, covering silicon fabs, compound semiconductors, advanced packaging, and testing facilities.
- India’s semiconductor market grew from $38 billion (2023) to $45-50 billion (2024-25), projected to reach $100-110 billion by 2030.
- India targets 70-75% self-sufficiency in domestic chip demand by 2029, and 3nm and 2nm capabilities by 2035.
India-UK Double Contribution Convention (DCC)
IR / Economy- The India-UK Double Contributions Convention (DCC) came into effect on July 15, 2026, alongside the India-UK Comprehensive Economic and Trade Agreement (CETA).
- The DCC is not retrospective and applies only to workers arriving in the UK on or after July 15, 2026.
- DCC allows temporary Indian workers in the UK and British workers in India an exemption from paying social security contributions in their host country for 60 months.
- Previously, “detached workers” (temporary foreign workers) were exempt from UK social security (National Insurance) for only the first 12 months.
- The India-UK DCC extended this exemption from 12 to 60 months, and applies only to employees not expected to remain in the UK beyond that period.
National Insurance (NIC)
UK’s social security system, paid by both employee (up to 8% of gross salary) and employer (up to 15% of gross salary).
EPFO’s Role
Workers seeking NIC exemption must obtain a “Certificate of Coverage” from India’s EPFO as evidence of contributions made in India.
Kudankulam Nuclear Power Plant Data Breach 2026
Security- A cybersecurity breach was reported at the Kudankulam Nuclear Power Plant (KKNPP), with hackers allegedly accessing Balance of Plant (BoP) systems.
- NPCIL clarified that the breach affected only administrative and non-critical BoP systems, not the nuclear island or reactor control systems.
Key distinction: Balance of Plant (BoP) covers supporting systems — turbines, generators, cooling, water treatment, electrical systems, administrative IT — excluding the reactor. The nuclear island (reactor core, primary coolant loop, control rods) is the most critical and heavily protected component; a BoP breach is serious but does not directly compromise reactor safety.
- Located at Kudankulam, Tirunelveli district, Tamil Nadu, on the Gulf of Mannar coast.
- A joint project of India and Russia, built with Russian assistance under an intergovernmental agreement.
- Uses VVER-1000 (Water-Water Energetic Reactor) technology, a pressurised water reactor designed by Russia.
- Total planned capacity of 6,000 MW across six units (1,000 MW each), operated by NPCIL.
VVER Reactor
Voda-Vodyanoy Energetichesky Reaktor — a Russian-designed PWR using enriched uranium fuel and light water as coolant/moderator, with passive safety features enabling automatic shutdown without external power.
NPCIL
A Government of India enterprise under the DAE; operates 23 nuclear reactors (~7,480 MW installed capacity). India’s nuclear target is 22,480 MW by 2031-32.
OTP vs Fixed PIN Security
Science & Tech- Ride-hailing apps like Rapido and Namma Yatri replaced OTP (One-Time Password) with a fixed standing PIN tied to the account, sparking debate on security trade-offs.
- Uber maintained a fresh per-ride OTP in India while adopting the static code model in some markets.
OTP
Valid for a single booking only and expires once the trip begins; generated at booking time and delivered separately, proving the holder just booked and is present. Limits damage from insider threats and leaked credentials.
Fixed PIN
A permanent credential repeated every ride. A leaked PIN produces an indistinguishable fraudulent ride with no automatic revocation, shifting trust to drivers and post-hoc fraud detection.
China’s Submarine-Launched ICBM Test 2025
IR / Defence- China’s PLA conducted its second launch of a ballistic missile in international waters since 1980 on July 6, launching from a submarine in the South China Sea.
- The dummy warhead travelled 7,300 km, flew over the Philippines, and landed in the South Pacific Ocean — within an area designated under the Treaty of Rarotonga’s South Pacific Nuclear-Free Zone.
- The missile was either JL-2 (Ju Lang 2) or the latest JL-3 (Ju Lang 3), both Submarine-Launched ICBMs (SLBMs).
- JL-2 can travel 8,000-9,000 km; JL-3 has a range of over 9,000 km. Both can be paired with China’s Type 094 SSBNs.
- ICBMs generally have a range of at least 5,000 km.
Treaty of Rarotonga (1985): Established the South Pacific Nuclear-Free Zone (SPNFZ), prohibiting testing, stationing, or storing of nuclear explosive devices within the zone (covering member EEZs, incl. Australia, New Zealand and other Pacific island nations). China’s missile landing within this zone raised concerns about treaty compliance.
Sources: The Hindu, Indian Express
