·The Hindu

CITU conference condemns Labour Codes and new rural jobs, nuclear energy Acts

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments (last 12–18 months)
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas
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1. At a Glance

  • The 18th All India Conference of CITU (Centre of Indian Trade Unions), held at Visakhapatnam in January 2026, passed resolutions condemning three major legislative actions of the Union government. [1]
  • The conference is significant for UPSC as it brings together three exam-heavy legislative domains: rural employment law, labour consolidation, and nuclear energy liberalisation. [1]
  • CITU is affiliated with the Communist Party of India (Marxist) and is one of India's largest central trade union organisations; its positions reflect organised labour's critique of structural reforms. [1]
  • Aspirants must distinguish between the old MGNREGA framework, the new VB-G RAM G Act, 2025, and the SHANTI Act, 2025 — all are exam-active in 2025–26. [2][3]

2. Why in the News

  • Triggering event: The 18th All India Conference of CITU, Visakhapatnam, 2 January 2026 — CITU General Secretary Tapan Sen announced resolutions on Day 2. [1]
  • Resolution 1: Demanded repeal of VB-G RAM G Act, 2025 and restoration of MGNREGA with enhanced workdays, wages, and 100% Central funding. [1]
  • Resolution 2: Condemned the SHANTI Act, 2025 as "anti-people, anti-sovereignty" legislation opening nuclear energy to private and foreign interests. [1]
  • Resolution 3: Denounced the four Labour Codes as an "attack on workers' rights." [1]
  • Side note: CITU credited worker agitations with preventing privatisation of the Visakhapatnam Steel Plant over five years. [1]

3. Background & Evolution

Labour Codes

Year Event
2002 Second National Commission on Labour recommends consolidation of 44 central labour laws
2019 Code on Wages, 2019 — first of four codes enacted
2020 Three more codes enacted: Industrial Relations Code, Social Security Code, Occupational Safety, Health and Working Conditions Code
2021–present Codes passed but rules not notified; most states yet to finalise; implementation stalled
  • Predecessor laws subsumed: ~29 central labour statutes merged into 4 codes.
  • Trade unions have consistently opposed the codes as diluting job security (removal of standing orders threshold, flexibility in hire-and-fire) and weakening collective bargaining. [1]

MGNREGA → VB-G RAM G Act

Year Event
2005 MGNREGA enacted — guaranteed 100 days of unskilled wage employment per rural household per year; 100% Centre-funded for wages
2025 VB-G RAM G Act, 2025 enacted; MGNREGA repealed; new Act effective 1 July 2025 [2][4]
  • Rationale cited by government: align rural employment with Viksit Bharat 2047 targets; modernise via digital governance; expand scope to livelihood and infrastructure. [4]

Nuclear Energy: Atomic Energy Act → SHANTI Act

Year Event
1962 Atomic Energy Act, 1962 enacted — state monopoly over nuclear materials and plants
2010 Civil Liability for Nuclear Damage Act passed; limited foreign vendor participation
Winter Session 2025 SHANTI Bill passed by Parliament; Presidential assent December 2025 [3]
2026 Act in force; private sector licensing process underway

4. Core Static Facts

Four Labour Codes

Code Year Laws Subsumed
Code on Wages 2019 Minimum Wages Act, Payment of Wages Act, Equal Remuneration Act, Payment of Bonus Act
Industrial Relations Code 2020 Trade Unions Act, Industrial Employment (Standing Orders) Act, Industrial Disputes Act
Social Security Code 2020 EPF Act, ESI Act, Maternity Benefit Act, Gratuity Act + 9 others
OSH Code 2020 Factories Act, Mines Act, Building & Construction Workers Act + others
  • Ministry: Ministry of Labour and Employment
  • Key controversy: Threshold for standing orders raised to establishments with 300+ workers (from 100); retrenchment/lay-off/closure permission threshold raised similarly in IR Code.

VB-G RAM G Act, 2025

  • Full name: Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 [2]
  • Replaces: MGNREGA (2005) effective 1 July 2025 [4]
  • Ministry: Ministry of Rural Development
  • Key changes from MGNREGA:
Parameter MGNREGA VB-G RAM G Act
Days guaranteed 100 days/household/year 125 days/household/year [2]
Wage funding 100% Centre 60:40 Centre-State [2]
Wage payment cycle 15 days Weekly [2]
Work domains Unskilled manual work 4 domains: water security, rural infrastructure, livelihood infrastructure, extreme weather mitigation [2]
Agricultural pause Not specified Up to 60 days pause during peak agricultural season [2]
  • Unemployment allowance retained in principle but critics argue it is now at governmental discretion, not a legal right. [1][2]
  • Opposition MPs submitted amendments seeking to restore the name "MGNREGA." [5]

SHANTI Act, 2025

  • Full name: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 [3]
  • Presidential assent: December 2025 [3]
  • Ministry: Department of Atomic Energy (under Prime Minister's Office)
  • Key provisions:
  • Allows private companies and joint ventures to build, own, operate, and decommission nuclear power plants under government licence. [3]
  • Maintains prohibition on FDI in atomic energy — DAE clarified this in Parliament on 10 December 2025. [3]
  • Private sector entry is subject to regulatory oversight; licensing by the government. [3]

  • Predecessor law: Atomic Energy Act, 1962 (state monopoly model)

  • CITU position: "Anti-people, anti-sovereignty" — opens "most hazardous and strategic sector" to private/foreign interests. [1]

5. Multi-Dimensional Analysis

Economic

  • VB-G RAM G: 60:40 funding model shifts fiscal burden to states — poorer states with larger rural labour dependency (Bihar, UP, Odisha) face larger obligations without commensurate fiscal capacity. [2]
  • Labour Codes: Proponents argue flexibility reduces cost of doing business and formalises more workers; critics cite 90%+ workers in informal sector remain uncovered pending implementation. [1]
  • SHANTI Act: Opens ₹-multi-trillion nuclear capacity expansion to private capital; India targets 100 GW nuclear by 2047 under Viksit Bharat energy roadmap. [3]

Social / Labour Rights

  • MGNREGA was a demand-driven entitlement — employment had to be provided within 15 days or unemployment allowance triggered automatically. VB-G RAM G critics argue the new Act converts this into a discretionary programme. [1][2]
  • Labour Codes' higher threshold for retrenchment permission (300 workers) weakens job security for workers in medium establishments. [1]
  • Women's participation in MGNREGA was historically high (~57%); any weakening of the Act disproportionately affects rural women. [1]

Legal / Constitutional

  • MGNREGA rested on the Right to Work jurisprudence (Article 21, Directive Principles Art. 39, 41, 43) — CITU argues VB-G RAM G undermines the justiciable nature of this right. [1]
  • Labour Codes: Labour is a Concurrent List subject (Schedule VII, List III, Entry 22–24); states must pass their own rules — implementation patchwork is constitutionally inherent. [1]
  • Atomic Energy Act, 1962 was premised on Entry 7, Union List (industries declared by Parliament to be necessary for defence/nuclear energy). SHANTI Act amends/supplements this framework; no constitutional change required. [3]

Scientific / Technological

  • SHANTI Act aims to accelerate Small Modular Reactors (SMRs) and large-capacity plant construction through private sector efficiency. [3]
  • India has 22 operational nuclear reactors (as of 2025); government target: 100 GW nuclear by 2047, up from ~8 GW currently.
  • Digital-governance backbone in VB-G RAM G: Aadhaar-linked, real-time work tracking — shift from paper-based MGNREGA muster rolls. [2]

Ethical / Governance

  • Shifting MGNREGA's unemployment allowance from a legal right to administrative discretion is criticised as reducing state accountability to rural poor. [1]
  • Nuclear safety concerns: CITU and civil society argue private nuclear operators may prioritise profit over safety; the existing Civil Liability for Nuclear Damage Act, 2010 liability cap may be inadequate. [1][3]
  • Labour Codes pending implementation since 2020 — raises questions of legislative intent vs. administrative will. [1]

Historical

  • MGNREGA (2005) was inspired by Maharashtra's Employment Guarantee Scheme (1977) — the world's first legal guarantee of employment.
  • Nuclear state monopoly (1962) was consistent with Nehruvian model; SHANTI Act represents the most significant structural departure from that model. [3]

6. Recent Developments (last 12–18 months)

  • 2025, Winter Session: Parliament passes VB-G RAM G Bill and SHANTI Bill in the same session. [2][3]
  • 1 July 2025: VB-G RAM G Act comes into force; MGNREGA formally repealed. [4]
  • 10 December 2025: DAE clarifies in Parliament that FDI in atomic energy remains prohibited under SHANTI Act. [3]
  • December 2025: President Droupadi Murmu grants assent to SHANTI Bill. [3]
  • 2 January 2026: CITU's 18th All India Conference, Visakhapatnam — resolutions condemning VB-G RAM G Act, SHANTI Act, and Labour Codes passed; Tapan Sen addresses media. [1]
  • Ongoing (2025–26): Visakhapatnam Steel Plant privatisation remained stalled — CITU attributes this to sustained worker agitation. [1]
  • Opposition amendments to VB-G RAM G Bill sought restoration of "MGNREGA" name — rejected. [5]

7. Prelims Hooks

  1. The 18th All India Conference of CITU was held at Visakhapatnam in January 2026. [1]
  2. CITU General Secretary is Tapan Sen. [1]
  3. VB-G RAM G expands to Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin). [2]
  4. VB-G RAM G Act, 2025 replaced MGNREGA effective 1 July 2025. [4]
  5. Under VB-G RAM G, annual employment guarantee increased from 100 days to 125 days per household. [2]
  6. Wage funding model under VB-G RAM G: 60% Centre, 40% State (was 100% Centre under MGNREGA). [2]
  7. VB-G RAM G provides for wage payment on a weekly cycle (vs. 15 days under MGNREGA). [2]
  8. SHANTI expands to Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. [3]
  9. SHANTI Act received Presidential assent in December 2025. [3]
  10. SHANTI Act allows private sector to own and operate nuclear plants; FDI remains prohibited. [3]
  11. DAE clarified FDI prohibition on 10 December 2025 in Parliament. [3]
  12. The predecessor law to SHANTI Act: Atomic Energy Act, 1962. [3]
  13. Four Labour Codes: Code on Wages (2019), Industrial Relations Code, Social Security Code, Occupational Safety Health & Working Conditions Code (all 2020). [1]
  14. Labour Codes subsume approximately 29 central labour statutes. [1]
  15. Under Industrial Relations Code, retrenchment/layoff/closure requires government permission only for establishments with 300+ workers (raised from 100). [1]

8. Mains Relevance

GS Paper Syllabus Heading
GS-II Government policies and interventions for development; Welfare schemes for vulnerable sections; Issues relating to implementation
GS-III Indian Economy; Employment; Energy Security; Nuclear energy policy; Labour reforms
GS-IV Ethics of policy: balancing growth with workers' rights and safety

Plausible Mains Questions:

  1. "The VB-G RAM G Act, 2025 promises modernisation of rural employment but critics argue it undermines the demand-driven legal guarantee of MGNREGA. Critically examine." (GS-II/III)
  2. "The SHANTI Act, 2025 marks a paradigm shift in India's nuclear energy governance. Analyse its potential benefits and risks in the context of India's energy security and safety obligations." (GS-III)
  3. "Four Labour Codes promise consolidation and ease of doing business but remain unimplemented years after enactment. Examine the constitutional and administrative reasons for this gap." (GS-II/III)

9. Related Topics to Study Next

Topic Connection
MGNREGA — history, achievements, criticisms Direct predecessor to VB-G RAM G; comparative analysis is a standing exam theme
Four Labour Codes — detailed provisions CITU's specific objections map onto each code's controversial clauses
India's Nuclear Energy Programme (DAE, NPCIL, three-stage plan) Context for SHANTI Act's significance and departure from state monopoly
Civil Liability for Nuclear Damage Act, 2010 Directly interacts with SHANTI Act's private sector entry; liability regime is exam-active
Viksit Bharat 2047 Overarching policy umbrella for both VB-G RAM G and SHANTI Act
Concurrent List & Centre-State Relations in Labour Constitutional basis for why Labour Code implementation is state-dependent
Trade Union Movement in India — history and major unions CITU, INTUC, BMS, HMS — exam loves comparative union questions
Informal Economy and Social Security Social Security Code's coverage of gig/platform workers; ongoing reform debate

10. Common Errors / Trap Areas

  1. VB-G RAM G does NOT abolish unemployment allowance — it retains it in principle, but critics argue it shifts from an automatic legal right to discretionary provision. Do not state it was "abolished." [1][2]
  2. SHANTI Act does NOT permit FDI in nuclear energy — it allows Indian private companies; FDI remains expressly prohibited. This is a classic trap. [3]
  3. Labour Codes were enacted in 2019–2020 but are NOT yet in force — rules have not been notified in most states; do not state they are "implemented."
  4. CITU ≠ INTUC — CITU is affiliated with CPI(M); INTUC is affiliated with Indian National Congress. Exam options routinely swap these.
  5. VB-G RAM G increases days from 100 to 125, NOT to 150 or 200 — common confusion from policy debates citing higher aspirational targets. [2]

Sources

  1. 1"CITU conference condemns Labour Codes and new rural jobs, nuclear energy Acts" — The Hindu, 2 January 2026 — (Primary article; Tapan Sen quotes, CITU resolutions)tier 4
  2. 2"VB–G RAM G Bill 2025 Explained: How It Replaces MGNREGA" — PRS Indiaprsindia.org · tier 1
  3. 3"SHANTI Act 2025: Nuclear Power Projects — Relevance For Private Stakeholders" — Mondaq/JSA Law (citing DAE Parliamentary clarification, Presidential assent, FDI position)mondaq.com · tier 4
  4. 4"VB-G RAM G Act to replace MGNREGA from July 1" — DD News (Government broadcaster)ddnews.gov.in · tier 1
  5. 5"Opposition MPs submit amendments to VB-G RAM G Bill 2025 seeking to replace draft law's name to MGNREGA" — Deccan Heralddeccanherald.com · tier 4
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