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December 17, 2025 India Unveils Major Policy Reforms: New Rural Employment and Higher Education Bills Introduced

India has witnessed significant legislative activity in the last 24 hours, with the introduction of two pivotal bills aimed at reforming rural employment and higher education. The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Bill, 2025, seeks to replace the existing MGNREGA, enhancing guaranteed workdays and revising funding mechanisms. Simultaneously, the Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025, proposes a comprehensive overhaul of the higher education regulatory landscape, establishing a new apex body and separating regulatory and funding functions. Additionally, a substantial project for community-based disaster risk reduction has been approved, and a new report highlights India's progress in clean energy transition.

India's legislative agenda saw significant advancements on December 16, 2025, with the introduction of key bills impacting rural employment and higher education, alongside approvals for social welfare and environmental initiatives.

Rural Employment Revamp: VB–G RAM G Bill, 2025

The Lok Sabha introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Bill, 2025, on Tuesday, December 16, 2025. This bill is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, a landmark social welfare program.

Key provisions of the new bill include an increase in the guaranteed days of employment for rural households from the current 100 days to 125 days annually. The funding structure will also see a notable change, moving to a 60:40 cost-sharing ratio between the central and state governments for most states, with North-eastern and Himalayan states retaining a 90:10 ratio. The bill mandates state governments to announce a period of up to 60 days each financial year when work under the scheme will not be undertaken, particularly during peak agricultural seasons.

The VB–G RAM G Bill emphasizes focusing on four thematic domains: water security, rural infrastructure, livelihood-related infrastructure, and mitigation of extreme weather events. It also aims for integration with the PM Gati Shakti National Master Plan and the establishment of an integrated 'Vikasit Bharat National Rural Infrastructure Stack' for efficient management of rural public works. Transparency and accountability are central to its framework, with provisions for weekly public disclosures and robust social audits. The existing provision for unemployment allowance if work is not provided within 15 days will be retained.

Higher Education Regulatory Overhaul: VBSA Bill, 2025

In a move to modernize India's higher education system, the Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025, was introduced in the Lok Sabha on December 15, 2025. This comprehensive legislation aims to replace multiple existing regulatory bodies, including the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE), with a single apex commission, the VBSA.

A significant aspect of the bill is the conscious decision to separate funding powers from the regulatory authority, a step intended to minimize conflicts of interest. The VBSA will coordinate between separate regulatory, accreditation, and standards councils, which will operate autonomously. The bill also includes provisions for substantial fines, ranging from ₹10 lakh to over ₹2 crore, for various violations, with the highest penalties for institutions operating without required accreditation. The proposed framework seeks to standardize rules and regulations, ensure public scrutiny of compliance data, and enhance public accessibility.

Strengthening Disaster Risk Reduction at Grassroots

A High-Level Committee, chaired by Union Home Minister Shri Amit Shah, approved Rs. 507.37 crore for a National Project for Strengthening Community Based Disaster Risk Reduction Initiatives in Panchayati Raj Institutions. This initiative targets 81 disaster-prone districts across 20 states, aiming to integrate Disaster Risk Reduction (DRR) practices into governance structures at the local level. The project extends the National Disaster Mitigation Fund to the Panchayat level, with the central government contributing Rs. 273.38 crore under the National Disaster Mitigation Fund (NDMF). Activities under the project include institutional strengthening, policy integration in DRR development planning, capacity building, and awareness generation for various stakeholders.

Progress in Clean Energy Transition

A new report, "Mapping India's Energy Policy 2025," released on December 16, 2025, indicates a positive shift in India's energy landscape. Government support for fossil fuels in Financial Year (FY) 2024 was five times the level of clean energy, marking the smallest gap in five years. Clean energy subsidies saw a significant 31% year-on-year increase, reaching nearly INR 32,000 crore (USD 3.9 billion) in FY 2024, reflecting sustained policy support for renewables. Notably, India's non-fossil electricity capacity surpassed 50% in 2025, achieving this milestone five years ahead of schedule. However, the report also highlights that 83% of capital expenditure by central energy-related Public Sector Undertakings (PSUs) in FY 2024 still flowed into fossil fuel sectors, emphasizing the need for further diversification and electricity reforms to sustain momentum.

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