On Thursday, February 19, 2026, Reliance Industries and its digital arm, Jio Platforms, announced a massive $110 billion (₹10 trillion) investment over seven years to build a "sovereign artificial intelligence (AI) backbone" for India. This announcement was made by Reliance chairman Mukesh Ambani during the fourth day of the India AI Impact Summit 2026 in New Delhi.
The key highlights of Reliance's AI initiative include:
- Sovereign Infrastructure: Ambani stated the goal is to build India's own compute infrastructure to ensure the country does not have to "rent intelligence".
- Data Centres: The plan involves constructing multi-gigawatt (GW) AI-ready data centres, starting with a 120MW facility in Jamnagar expected to come online in the second half of 2026.
- Nationwide Edge Network: Reliance aims to deploy a nationwide edge network integrated with Jio’s 5G infrastructure to make AI "responsive, low-latency and affordable" for all Indians.
- Green Energy: The infrastructure will be supported by green energy-backed capacity.
Simultaneously, Tata Consultancy Services (TCS) announced a major strategic partnership with OpenAI. Under this deal:
- Anchor Client: OpenAI will serve as the anchor client for a new data centre TCS has been building since October 2024.
- Infrastructure Collaboration: The two companies will collaborate to develop secure, India-based AI infrastructure, specifically a project referred to as "HyperVault".
- Employee Access: Thousands of Tata Group employees will gain access to Enterprise ChatGPT tools to enhance productivity.
Ambani emphasized that this push aims to dramatically reduce the "cost of intelligence" in India, similar to how Reliance previously lowered the cost of data. This massive private investment is seen as a move to position India as a global AI hub while maintaining data sovereignty.
Don 3 drama rejigs Bollywood contracts By Lata Jha New Delhi
Bollywood, despite the steady influx of corporate studios and institutional capital, continues to run largely on personal relationships; however, that long-standing informality is currently under significant strain. In response to recent industry friction, producers are revisiting contract drafting standards and insisting on stronger exit clauses, structured payment schedules linked to performance obligations, and clearer commitment periods once projects are publicly announced.
The catalyst for this shift is a high-profile public dispute between actor Ranveer Singh and Farhan Akhtar’s production banner, Excel Entertainment. Excel has reportedly demanded ₹40 crore in compensation for losses incurred after Singh allegedly exited the upcoming film Don 3. While the actor has countered the demand by stating he took no advance payment, experts suggest the episode reflects a widening gap in formal documentation within the industry.
Industry professionals and legal experts highlight several key changes occurring in the wake of this drama:
- Institutionalized Contracting: As film budgets soar—with big-budget movies now costing ₹300-500 crore to produce—investors are beginning to expect binding commitments similar to project finance structures. This includes stronger lock-in clauses and insurance-linked obligations.
- Performance-Linked Payments: Contracts are moving toward more rigorous, performance-based milestones rather than trust-based arrangements.
- Defining Exit Triggers: Legal practitioners like Rahul Hingmire of Vis Legis Law Practice note that we may soon see clearer "exit triggers" to manage the risk of a sudden talent departure, which can otherwise destabilize an entire project.
- Proof of Loss: Attorney Rishabh Gandhi notes that while courts rarely force an actor to perform due to the nature of personal service contracts, producers are now ensuring they have the legal standing to claim quantifiable damages if a breach is established.
Producers are also navigating the "defensible grey area" of artistic dissatisfaction, a common plea used to justify exits that remains difficult for courts to adjudicate in speculative ventures like filmmaking. Conversely, tighter contracts also protect actors; if a project stalls due to a producer's failure, defined clauses may allow talent to retain signing amounts or claim compensation for blocked dates.
Ultimately, experts like Yatharth Rohila of Aeddhaas Legal LLP believe these disputes highlight an essential evolution for Bollywood: the transition from "trust-based arrangements to legally risk-allocated agreements".
RBI asks NPCI to review UPI Autopay on debit concerns
By Mansi Verma & Anshika Kayastha Mumbai
The banking regulator, the Reserve Bank of India (RBI), has asked the National Payments Corporation of India (NPCI) to investigate a rising number of complaints regarding erroneous and involuntary UPI Autopay debits.
Users of the Unified Payments Interface (UPI) began reporting a surge in involuntary autopay mandates and significant difficulty in cancelling recurring payments toward the end of 2025. These concerns, often reported to cybercrime departments, prompted the NPCI to convene meetings in December with third-party application providers (TPAPs), payment gateways, and select merchants to assess whether interface designs or existing payment flows were to blame.
Rapid Growth and User Risks
UPI Autopay, launched in 2020 for subscriptions, bills, and EMIs, has become one of the fastest-growing use cases in the ecosystem. According to the sources:
- Transaction Volume: Recurring UPI payments have doubled over the past year, with the top 10 banks processing approximately 926 million transactions in November alone.
- Market Share: Autopay now accounts for roughly 5% of all UPI transactions by volume, processing nearly 1 billion transactions monthly.
Despite this growth, experts note that issues such as unexplained debits and interface friction are similar to historical problems seen with card-based mandates. Users have reported being unaware that one-time payments were triggering recurring mandates, and many incorrectly assumed that deleting a mobile app would automatically stop further deductions. There have also been claims that users are not receiving clear pre-debit or post-debit notifications directly from the apps.
New Regulatory Mandates
Even before the RBI's recent nudge, the NPCI had begun tightening its framework. In a significant move toward transparency and user control, the NPCI has directed banks and UPI apps to enable interoperability for Autopay mandates by December 31, 2025.
Under these new rules:
- Centralized Visibility: Users must be able to view all active mandates on any UPI app of their choice, regardless of where the mandate was originally created.
- Mandate Portability: Users will gain the ability to "port" or shift mandates from one application to another.
- Nudge Restrictions: Applications are strictly barred from using cashbacks, pop-ups, or other intrusive nudges to pressure users into migrating their mandates.
These measures aim to ensure that mandate management is entirely user-driven and accessible via a dedicated "manage accounts" section within UPI apps.
As demerger nears, Vedanta shores up oil output
By Dipali Banka & Nehal Chaliawala Mumbai
Ahead of its upcoming demerger into five separately listed companies, Vedanta Ltd is in a race against time to shore up production levels at its oil and gas business, which have declined in each of the past 10 years. Higher production levels are seen as critical to bolster the financials of the business before it begins operating as an independent entity named Vedanta Oil & Gas Ltd.
Declining Production Trends
Over the last decade, ageing oil blocks have caused production at Vedanta’s oil and gas vertical to more than halve, dropping from 211 thousand barrels of oil equivalent per day (kboepd) in FY15 to 103.2 kboepd in FY25. For the first nine months of FY26, average output stood at 89.1 kboepd, which is below the company's initial guidance of 95–100 kboepd.
While other industry players like Reliance Industries and ONGC also face declines in ageing blocks, the situation is more pressing for Vedanta. Once the demerger is finalized on April 1, the oil and gas unit will no longer have the financial cushion provided by the conglomerate’s cash-rich aluminium and zinc businesses.
Shrinking Financial Contribution
The vertical’s contribution to the group's overall financials has diminished significantly:
- Revenue: In the first three quarters of 2025-26, it reported ₹6,999 crore, accounting for 6% of the top line, down from approximately 20% a decade ago.
- Ebitda: It contributed ₹3,285 crore, or 9% of consolidated Ebitda, also down from a fifth a decade ago.
- Historical Growth: Between FY15 and FY25, the revenue of the oil and gas business shrunk by a quarter.
Recovery Strategies and Delays
To reverse these trends, Vedanta is focusing on Enhanced Oil Recovery (EOR) through a process known as alkaline-surfactant-polymer (ASP) flooding at its key Mangala fields in Rajasthan. However, this project—one of the largest and most expensive of its kind—is months behind schedule. Originally planned for a July start, commissioning is now expected within the next three months.
Jasmin Sahurity, COO of the oil and gas business, noted that the delay in ASP commissioning is the primary reason volumes haven't met expectations. Additionally, the company is targeting "tight oil" (reserves embedded in rocks) by drilling new wells to push production toward 90 kboepd in FY27, with a long-term goal of 150 kboepd.
Financial Outlook Post-Demerger
Despite production challenges, CFO Ajay Goel stated that the oil and gas business will be practically debt-free following the demerger. The bulk of Vedanta’s ₹60,624-crore net debt has been apportioned to the aluminium and base metal businesses based on asset value and cash generation abilities. Analysts at JP Morgan remain cautious, pricing in production levels of only 95 kboepd through FY28, while experts emphasize that reversing declines in mature assets requires strategic patience and disciplined execution.
U.S. gathers the most air power in the Mideast since the 2003 Iraq invasion By Lara Seligman, Michael R. Gordon, Alexander Ward & Shelby Holliday WASHINGTON
The United States is sending significant numbers of jet fighters and support aircraft to the Middle East, assembling the greatest amount of air power in the region since the 2003 invasion of Iraq. While the U.S. is prepared to take action against Iran, President Trump has not yet decided whether to order strikes or what their primary objective would be—ranging from halting the nuclear program to attempting to topple the regime.
Over the past few days, the U.S. has moved cutting-edge F-35 and F-22 fighters toward the region, supported by command-and-control aircraft and critical air defenses. A second aircraft carrier, the USS Gerald R. Ford, and its strike group are currently inbound to join the USS Abraham Lincoln and its nine destroyers already supporting potential operations. This amassed firepower gives the U.S. the option of a sustained, weekslong air war rather than a single limited strike like the "Midnight Hammer" operation conducted in June.
While military options are prepared, representatives from the U.S. and Iran met in Geneva this week to negotiate a deal regarding uranium enrichment. White House press secretary Karoline Leavitt noted "a little bit of progress," but stated that the two sides remain "very far apart" on several issues. Trump has indicated he would prefer a diplomatic agreement that eliminates Iran's nuclear programs, disbands proxy forces, and dismantles ballistic missiles, though he has told reporters he mainly cares about the nuclear issue.
Today's military circumstances differ from 1991; the U.S. Air Force is smaller now, and there are currently no allied ground forces or a broad international coalition. Notably, Saudi Arabia and the United Arab Emirates have restricted their airspace for potential U.S. strikes, leading to a concentration of warplanes at the Muwaffaq Salti Air Base in Jordan. Despite a smaller overall force than in the 2003 invasion, military technology has improved significantly, particularly in stealth and precision strike capabilities.
Iran is also preparing for a potential conflict by hardening its nuclear sites and dispersing decision-making authority. Satellite imagery shows Tehran has been strengthening tunnel entrances at its Isfahan site and a deep underground complex at Pickaxe Mountain to protect enriched uranium from airstrikes. Additionally, the Islamic Revolutionary Guard Corps is reviving a "mosaic defense" strategy to make the regime more resilient if the chain of command is disrupted. Domestically, security forces have established roughly 100 monitoring points around Tehran to stifle dissent and block potential insurgents.
As formidable as the current buildup appears, it remains a fraction of the assets used in 1991 or 2003. Some former officers suggest the dramatic increase in force is a signal that "Trump is not messing around," which could prompt Iranian leaders to agree to a deal. However, U.S. and foreign officials are increasingly pessimistic that Tehran will agree to all demands, fearing the gap between the two nations may be unbridgeable.
Why India’s Soil is Gasping for Air
By Sayantan Bera New Delhi
Cheap urea was meant to help farmers. Instead, it is hollowing out farms and damaging soils.
A few years ago, an internal survey of Indian farmers in the 40+ age group revealed a heartbreaking sentiment: most felt they would not be able to bequeath a worthy asset—their land—to the next generation. This is the result of a vicious cycle where low profitability leaves farmers with no surplus to invest in soil health, while recurring climate shocks like droughts and heatwaves further degrade the land.
The Subsidy Paradox
The scale of the crisis is reflected in the federal budget. In 2025-26, the fertilizer subsidy bill is estimated at ₹1.9 trillion, significantly higher than the entire agriculture budget of ₹1.5 trillion. Of this, the government spends ₹1.3 trillion specifically on urea. This massive spending drains funds that could otherwise be used for irrigation, research, or direct price support for farmers.
India’s dependence on imports remains a critical vulnerability, with the country importing roughly 75% of its urea, 90% of its DAP, and 100% of its potash. Consequently, global shocks, such as the 2022-23 energy spike following the invasion of Ukraine, can send the subsidy bill soaring (reaching a record ₹2.5 trillion that year).
Environmental and Health Costs
Because the domestic price of urea has remained largely unchanged for nearly two decades, it is ridiculously cheap, leading farmers to chronically over-apply it while neglecting more expensive nutrients.
- Low Efficiency: Plants absorb only about 40% of applied urea.
- Toxic Emissions: The excess nitrogen is released as nitrous oxide, a greenhouse gas with a global warming potential 272 times that of CO2. These emissions account for over a fifth of all agricultural greenhouse gas emissions in India.
- Soil Degradation: Decades of intensive cropping and heavy urea reliance have led to a nutrient imbalance and a deficiency in micronutrients like sulphur, iron, zinc, and boron.
The Failed "Nano" Hope
A liquid "nano urea" product launched in 2021 by Iffco was hailed as the "innovation of the century," with claims that a 500-ml bottle could replace a 45-kg bag of granular urea. However, it has failed to convince farmers. A 2024 field study by Punjab Agricultural University even reported a significant drop in rice and wheat yields when using the product.
The Road to Reform
Experts argue that the "addiction" to cheap urea is structurally embedded because the retail price does not reflect the true cost. The Economic Survey recently recommended a modest hike in urea prices, with an equivalent amount transferred directly to farmers' accounts on a per-acre basis. This would incentivize farmers to use the cash to buy a more balanced mix of nutrients.
The challenge is also linked to a perverse incentive to grow water-intensive cereals (rice, wheat, and maize for ethanol) due to assured government procurement. As Suresh Kumar Chaudhari, director general of the Fertilizer Association of India (FAI), notes, the moment farmers gain access to irrigation, they often switch from pulses to these fertilizer-heavy crops.
As 2020 World Food Prize Laureate Rattan Lal warns, the health of soil, plants, and humans is indivisible: "If soils are not restored, crops will fail, and people will suffer."
Freebies, and their many hazards
By A Narayanamoorthy Tamil Nadu Example: Freebies showered across a large swathe of voters squeeze out quality welfare for the really needy, and impact capex spending.
The recent announcement by the Tamil Nadu government to credit ₹5,000 into the bank accounts of 1.31 crore women under the "Kalaignar Magalir Urimai Thogai" scheme—marketed as a "Summer Special" allowance—marks a significant escalation in what economists call "competitive populism." While the Chief Minister framed this as an entitlement to fulfill a poll promise of providing ₹2,000 per month, the move has triggered a "bidding war" where opposition parties counter with even higher promises, reflecting a national trend where fiscal prudence is sacrificed for electoral gains.
The Volume and Cost of Freebies
While Tamil Nadu has a long history of successful welfare programs like the mid-day meal scheme, the current shift toward massive direct cash transfers represents a departure from productive welfare toward consumption-led populism.
- The Math: Providing ₹1,000 a month to 1.31 crore households already costs approximately ₹15,720 crore annually. With the increase to ₹1,351 per month, the annual burden will surge to over ₹21,100 crore, consuming nearly 9% of the state’s total revenue.
- Low Poverty Paradox: NITI Aayog data shows multidimensional poverty in Tamil Nadu is just 2.25%. In such a setting, a universal scheme covering 70% of all households is seen as a drain on resources that could otherwise be used to lift the remaining people out of poverty.
Fiscal Arithmetic and Hidden Costs
The expansion of these "gifts" comes at a time when Tamil Nadu’s total debt is projected to reach ₹9.29 trillion by March 2026, with a revenue deficit of ₹41,635 crore for the 2025-26 fiscal year. To fund these distributions, the state has reportedly:
- Increased property taxes and electricity tariffs.
- Hiked registration fees on land and essential utility bills. This creates a regressive cycle where the state extracts money from the middle class through utilities to redistribute it as political populism.
Impact on Development and Infrastructure
The "hidden cost" of these freebies is the inevitable hit to capital expenditure. In Tamil Nadu, the capital outlay for 2025-26 is budgeted at ₹33,724 crore, while the total expenditure on various "freebie" schemes is nearly ₹57,251 crore. When committed expenditures like salaries, pensions, and interest payments already consume 62% of revenue receipts, the fiscal space for new development is rapidly vanishing.
The Moral Hazard
Beyond the balance sheet, there is a mounting concern regarding the dependency syndrome these schemes foster, which critics argue undermines the dignity of labour. The franchise of the vulnerable is increasingly treated as a commodity in an "election marketplace" where parties are judged on their "bidding price" rather than their long-term vision.
Conclusion: A Fiscal Cliff
With interest payments alone now accounting for 21% of revenue receipts, the state is approaching a "fiscal cliff." Experts suggest that the Supreme Court and institutional safeguards must intervene to force political parties to disclose exactly how they intend to fund the freebies they promise. Without such restraint, the primary function of the state risks becoming a cycle of debt servicing and subsidy distribution, leaving the future of infrastructure and genuine welfare in jeopardy.
The writer is an economist and former full-time Member (Official), Commission for Agricultural Costs and Prices, New Delhi. Views are personal.
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