Daily Current Affairs - 5th August 2025

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Today's edition features key updates including IEM Index, environmental compensation, GIFT City, AGNISHODH, E20, NMPB, Isotope Tagging, Asian Giant Tortoise, Bond Switching, Pangong Tso and more...

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E20 (Ethanol Blended Petrol)

1. The Ministry of Petroleum and Natural Gas has clarified that fears about 20% ethanol blending in petrol are not supported by scientific evidence.

2. E20 fuel is a blend consisting of 80% petrol and 20% ethanol.

3. Ethanol is a biofuel produced mainly from sugarcane, maize, or other agricultural feedstocks.

4. The National Policy on Biofuels, 2018, amended in 2022, governs ethanol blending in India.

5. The amendment advanced the target of 20% ethanol blending to the Ethanol Supply Year (ESY) 2025–26.

6. The original target year was 2030, which shows an acceleration in biofuel adoption.

7. One of the key benefits of E20 is that it improves fuel performance in modern engines.

8. It also contributes to lower life cycle greenhouse gas emissions, making it more environmentally friendly.

9. E20 blending helps in strengthening India’s energy security by reducing dependency on imported crude oil.

10. It also provides economic benefits to farmers, especially those involved in sugarcane and maize cultivation.

11. It supports the rural economy by creating new markets for agricultural produce.

12. However, there are possible concerns related to the use of E20 in certain vehicles.

    • One concern is a reduction in fuel efficiency in some existing vehicle models.

    • E20 may cause corrosion or damage to older engines, especially those not designed for ethanol-blended fuel.

    • The use of E20 may result in higher maintenance costs due to the need for engine modifications.

PAN (Permanent Account Number) 2.0 Project

1. The Income Tax (IT) Department has awarded a contract for the PAN 2.0 Project to a technology company.

2. The PAN 2.0 Project, launched in 2024, aims to streamline and modernise the entire process of issuing and managing PAN and TAN.

   • PAN (Permanent Account Number) is a unique 10-digit alphanumeric identifier issued by the IT Department.

   • PAN was first introduced in 1972 to link an individual’s or entity’s financial transactions with the Income Tax Department.

   • These financial transactions include activities such as filing income tax returns, high-value purchases, and investments.

   • TAN (Tax Deduction and Collection Account Number) is also a 10-digit alphanumeric code issued by the IT Department.

   • TAN is allotted to entities that are responsible for deducting (TDS) or collecting (TCS) tax at source.

     • TDS stands for Tax Deducted at Source, and TCS stands for Tax Collected at Source, which are mechanisms to collect tax during transactions.

3. One of the key features of PAN 2.0 is the introduction of a single unified portal for PAN and TAN-related services.

4. This portal aims to offer a centralised digital platform to improve access and ease of use for taxpayers and entities.

5. The PAN 2.0 system will enable paperless processing, eliminating the need for physical document submission.

6. This shift towards digital and contactless processing is expected to enhance efficiency and reduce processing time.

7. Another major highlight of the project is the implementation of enhanced security measures to protect taxpayer data.

8. One such measure is the creation of a PAN Data Vault, which will act as a secure repository for sensitive PAN-related information.

   • The PAN Data Vault is designed to prevent unauthorised access and ensure data confidentiality and integrity.

Parliamentary Standing Committee on Finance’s key Recommendations on Environmental, Social, and Governance (ESG)

1. The Parliamentary Standing Committee on Finance has released key recommendations to strengthen the Environmental, Social, and Governance (ESG) framework in India.

2. ESG refers to a set of non-financial standards used to evaluate a company’s environmental, social, and governance impact.

Key Observations on ESG in India

1. The Companies Act, 2013 does not explicitly mention ESG, but relevant principles are implied.

2. ESG-related aspects are currently addressed through provisions like Energy Conservation, POSH Act, Maternity Benefit Act, and the Corporate Social Responsibility (CSR) framework.

3. The Committee identified several risks in the current ESG landscape.

   • One major risk is greenwashing, which means giving a false impression of environmental responsibility.

   • Another concern is the inconsistent implementation of ESG practices across different sectors.

   • Micro, Small, and Medium Enterprises (MSMEs) face difficulties in adopting robust ESG frameworks due to limited resources and capacities.

Key Recommendations of the Committee

1. A dedicated ESG oversight body should be established under the Ministry of Corporate Affairs (MCA).

2. This body should be responsible for monitoring ESG disclosures, ensuring compliance, and introducing penalties for greenwashing.

3. The Committee recommended an amendment to the Companies Act, 2013.

4. This amendment should provide a clear legal basis for integrating ESG into core business strategies.

5. It also called for formulating sector-specific ESG guidelines, particularly to support MSMEs.

6. The Committee suggested the creation of independent ESG committees within companies.

7. These ESG committees would function similarly to audit committees, ensuring effective ESG implementation and monitoring.

8. It recommended including a dedicated ESG chapter in the Ministry of Corporate Affairs’ Annual Report starting FY 2025-26.

Other Related ESG Initiatives in India

1. Business Responsibility and Sustainability Reporting (BRSR) is mandatory for the top 1000 listed companies to disclose ESG-related information.

2. BRSR Core, introduced by SEBI, focuses on monitoring greenwashing risks and ensuring authentic sustainability claims.

3. The National Guidelines on Responsible Business Conduct (NGRBCs) were released by the Ministry of Corporate Affairs (MCA).

4. Under Section 135 of the Companies Act, 2013, companies meeting specific turnover and profitability thresholds are mandated to spend 2% of their average net profit over the past 3 years on CSR activities.

Develop more GIFT City-like Financial Centers in major metro cities: Standing Committee on Finance

1. The Standing Committee on Finance has recommended developing more financial centres like GIFT City in major metro cities across India.

2. GIFT City IFSC is India’s first and only International Financial Services Centre (IFSC).

3. It is located in Gandhinagar, Gujarat, and was established as a Special Economic Zone (SEZ) in 2015.

4. It is designated as a non-resident zone under the Foreign Exchange Management Act (FEMA).

   • An IFSC is a jurisdiction that offers financial services to both residents and non-residents, in foreign currencies.

5. It enables onshore and offshore financial services within a single regulatory environment.

6. GIFT IFSC offers a favorable tax structure, making it competitive for cross-border financial transactions.

7. It ensures a trusted regulatory environment, combining onshore talent with offshore regulatory and technological frameworks.

8. The centre promotes ease of doing business by aligning with global financial standards.

9. It facilitates both inbound and outbound investments to and from India.

10. The International Financial Services Centres Authority (IFSCA) is the sole regulatory body for IFSCs in India.

    • IFSCA was established in 2020 under the IFSCA Act, 2019.

    • It regulates financial products, services, and institutions operating in IFSCs.

11. As of the latest rankings, GIFT IFSC is ranked 46th in the Global Financial Centres Index, showing a 5-rank improvement.

12. It also ranks 45th in the FinTech rankings, marking a 4-rank improvement.

Recommendations by the Standing Committee on Finance:

1. The Committee recommended the creation of satellite financial innovation zones or FinTech clusters in other major cities.

2. These zones should be based on region-specific models to promote inclusive growth.

3. Such centres would also help create specialized talent pools and attract diverse domestic and global investors.

   • For example, China, a BRICS nation, currently has 10 financial centres functioning as multiple financial hubs.

4. The Committee also emphasized the need for streamlining of policies to improve the ecosystem.

5. It suggested enhancing transparency, promoting financial education, and strengthening digital infrastructure.

6. The use of regulatory sandboxes was recommended to support financial innovation in a controlled environment.

7. Further recommendations include simplifying the taxation regime and reducing the compliance burden on businesses.

Pangong Tso (Lake)

1. A Joint Expedition Team successfully summited Mt Merag-III and Mt Kangju Kangri.

2. These are the highest peaks in the Pangong Tso region of Ladakh.

3. The Pangong range is a subsidiary range of the larger Ladakh range.

4. It derives its name from the famous Pangong Tso (Lake) located in the same region.

About Pangong Tso (Lake):

1. Pangong Tso is situated at an altitude of 4,350 metres above sea level.

2. It is recognized as the world’s highest saltwater lake.

   • Saltwater lake refers to a lake containing significant concentrations of salts, unlike freshwater lakes.

   • One-third of the lake lies within Indian territory.

   • The remaining two-thirds of the lake extends into China.

3. The lake is known for its unique color-changing properties.

4. It appears in different shades like blue, grey-green, and even red at different times.

5. Despite being a saline water body, the lake freezes completely during the harsh winters.

   • Saline water generally doesn’t freeze easily, making this a notable phenomenon.

6. During summer, the lake serves as a breeding ground for several species of birds.

7. Notable bird species include Bar-headed geese, Brahminy ducks, black-necked cranes, and seagulls.

   • Bar-headed geese are among the highest-flying birds in the world.

   • Black-necked cranes are considered rare and endangered species, adding ecological significance to the lake.

NITI Aayog’s India Electric Mobility Index

1. NITI Aayog has unveiled the $200 Billion Electric Vehicle Opportunity Report along with the India Electric Mobility Index (IEMI).

2. The report provides a comprehensive assessment of India’s electric mobility ecosystem.

3. It highlights both the current challenges and strategic recommendations to accelerate the transition to electric mobility.

Challenges Identified in the Report:

1. The report highlights financing challenges, particularly for electric buses and electric trucks.

2. There is an inadequacy of charging facilities across the country.

3. Existing public charging stations are being underutilized.

4. There is a lack of awareness regarding EV performance among both public and private stakeholders.

5. The report also points out inadequate data availability. It notes the presence of regulatory gaps which hinder evidence-based decision-making.

Strategic Recommendations of the Report:

1. The report recommends a shift from incentives to mandates in EV policy.

2. This includes setting target timelines for the adoption of Zero Emission Vehicles (ZEVs).

3. It also includes disincentivizing Internal Combustion Engine (ICE) vehicles.

   • ICE vehicles are traditional fuel-based vehicles powered by petrol or diesel.

4. The report suggests the expansion of Corporate Average Fuel Efficiency (CAFÉ) norms to push cleaner technologies.

5. In terms of financing, the report recommends offering lower interest loans for procurement of e-buses and e-trucks.

6. It also suggests promoting battery leasing and vehicle leasing industries.

7. These models help convert high capital expenditure into manageable operating costs.

8. The report proposes saturation-based programs in limited geographies.

9. This means aiming for 100% electrification in select cities first, and then scaling up to more cities.

10. Additional recommendations include scaling up Research and Development (R&D) in the EV sector.

11. It also suggests identifying strategic charging hub locations.

12. Further, it emphasizes the importance of facilitating private charge point operators (CPOs) to expand charging infrastructure.

About India Electric Mobility Index (IEMI):

1. India Electric Mobility Index (IEMI) is a pioneering benchmarking tool developed by NITI Aayog in partnership with World Resources Institute India.

2. It aims to track and compare the progress of Indian states and UTs in electric mobility adoption.

3. IEMI evaluates states based on 16 indicators grouped into three core themes.

4. The first theme is Transport Electrification Progress, which has a 50% weightage.

   • This theme focuses on demand-side EV adoption, such as the number and type of EVs on roads.

5. The second theme is Charging Infrastructure Readiness, with a 30% weightage.

   • It evaluates the availability and development of public and private charging facilities.

6. The third theme is EV Research and Innovation Status, assigned a 20% weightage.

   • This tracks the innovation, patents, and R&D efforts in EV technology.

AGNISHODH, New IIT Madras–Indian Army Research Centre inaugurated at IIT Madras

1. The AGNISHODH Research Centre has been inaugurated at IIT Madras in collaboration with the Indian Army.

2. It focuses on the theme “Swadeshikaran Se Sashaktikaran”, which translates to Empowerment through Indigenous Development.

3. The centre aims to translate lab-scale innovations into deployable technologies for the Indian defence sector.

4. AGNISHODH is guided by Five Pillars of Transformation in defence modernisation.

5. These pillars are Technology Absorption, Structural Changes, Human Resource Development, Increasing Cohesion between Armed Services, and Modernisation.

6. The initiative supports the goal of Technology Infusion and Modernisation in India’s defence capabilities.

 Need for Defence Modernisation and Technology Infusion

1. The urgency of modernisation is driven by rising global military expenditure.

2. According to SIPRI data, global defence spending reached US$2,718 billion in 2024.

3. This represents a 9.4% increase in real terms from 2023.

4. India faces the need to counter adversaries, particularly after recent conflict with Pakistan.

5. These conflicts have revealed significant gaps in innovation, especially in non-kinetic warfare.

   • Non-kinetic warfare involves tactics that do not use physical force, such as cyber attacks and electronic warfare.

6. Emerging domains like Cyber and Space are becoming critical to defence strategies.

7. Advanced technologies like Artificial Intelligence (AI), Hypersonic systems, and Robotics require expertise in Tactics, Techniques, and Procedures (TTPs).

   • TTPs refer to the standard ways military forces operate and use technologies during missions.

8. Recent global conflicts show increased use of diverse military technologies, even by developing nations.

9. Therefore, there is a pressing need for India to strengthen and modernise its defence systems.

Key Initiatives for Defence Modernisation

1. India has launched various initiatives to promote innovation in defence.

2. One such initiative is Innovations for Defence Excellence (iDEX), launched in 2018.

3. iDEX engages MSMEs, startups, individual innovators, R&D institutes, and academia in defence R&D.

4. It includes sub-schemes like ADITI (Acing Development of Innovative Technologies with iDEX).

5. India is also promoting self-reliance in defence manufacturing.

6. The Self-Reliant Initiatives through Joint Action (SRIJAN) is led by the Department of Defence Production (DDP).

7. Another initiative includes MAKE Projects, which promote indigenous defence development.

8. MAKE Projects operate under three categories: Government Funded, Industry Funded, and Manufactured in India through Transfer of Technology (ToT).

   • Transfer of Technology (ToT) refers to transferring proprietary knowledge or production processes to Indian firms.

9. India has also introduced several policy reforms to boost defence production.

10. The FDI Policy has been liberalised to allow up to 74% Foreign Direct Investment through the automatic route.

11. For investments above 74%, approval is required through the government route.

12. The Ministry of Defence has declared 2025 as the ‘Year of Reforms’, highlighting its focus on transformation.

Pollution control boards (PCBs) can impose environmental compensation: Supreme Court (SC)

1. The Supreme Court (SC) has ruled that Pollution Control Boards (PCBs) can impose Environmental Compensation (EC).

2. This ruling came in the case of Delhi Pollution Control Committee vs Lodhi Property Co. Ltd.

3. The SC overturned the Delhi High Court’s decision which held that only courts could impose environmental compensations.

4. Environmental Compensation (EC) is a policy tool used to protect the environment.

5. It functions under the Polluter Pays Principle, which means the polluter must bear the cost of the damage caused to the environment.

6. The SC stated that PCBs have statutory authority to impose EC under specific environmental laws.

7. These powers arise under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974.

8. PCBs also derive power from Section 31A of the Air (Prevention and Control of Pollution) Act, 1981.

9. However, PCBs cannot impose penalties for every contravention under these Acts.

10. EC can be imposed only when environmental harm is caused by the erring entity.

11. In Indian Council for Enviro-Legal Action vs Union of India, the SC clarified the Polluter Pays Principle.

    • The SC in that case held that the responsibility for environmental damage lies with the offending industry.

    • Boards have discretion to choose the appropriate course of action in case of environmental violations.

    • This may include imposing a penalty, ordering restoration of environmental damage, or both.

12. In Vellore Citizens’ Welfare Forum vs Union of India (1996), SC held that liability includes both compensatory and remedial measures.

    • Compensatory liability refers to payment for the damage caused.

    • Remedial liability refers to the cost and action to restore the environment.

    • The SC also upheld that PCBs can take preventive or ex-ante measures to stop environmental harm before it occurs.

      • Ex-ante measures are steps taken in advance to prevent potential damage.

13. The Central Pollution Control Board (CPCB) is a statutory body under the Ministry of Environment, Forest and Climate Change.

    • It was established under the Water Act, 1974.

    • It was later entrusted with powers under the Air Act, 1981 as well.

    • The CPCB’s main role is to prevent air and water pollution across the country.

    • It also advises the Central Government on environmental matters.

    • State Pollution Control Boards (SPCBs) are also statutory bodies under the same Acts.

      • SPCBs assist the CPCB in the implementation of environmental laws within their respective states.

Bond Switching

1. A Bank of Baroda study showed that the Government of India saved ₹560 crore in interest costs through Bond Switching.

   • Bond Switching is a debt management mechanism used by the government.

2. Under Bond Switching, the government replaces shorter-duration sovereign bonds with longer-duration bonds.

3. For example, bonds maturing in FY27, FY28, and FY29 are replaced with bonds maturing after FY32.

4. This switch to longer-term bonds helps in reducing repayment pressure in the near future.

5. The process helps the government in smoothing its debt maturity profile.

   • A debt maturity profile refers to the schedule of how and when a government needs to repay its debt.

6. Bond switching can be carried out in two ways—with market participants or directly with the Reserve Bank of India (RBI).

   • Market participants include banks, financial institutions, and other bond investors.

   • The Reserve Bank of India (RBI) acts as the government's debt manager and facilitates these operations.

7. The primary objective of bond switching is to manage government liabilities more effectively.

8. Another objective is to ensure the development of the sovereign bond market.

9. Bond switching is particularly useful during periods of rising debt maturity.

   • Rising debt maturity refers to a situation where a large portion of government debt is due for repayment in the short term.

Asian Giant Tortoise

1. The Asian Giant Tortoise has been reintroduced into the Zeliang Community Reserve in Nagaland.

2. This marks an important step in the conservation of this endangered species.

3. The Asian Giant Tortoise is found in tropical and subtropical mountainous evergreen forests.

4. Its geographical range includes Bangladesh, Brunei, India, Indonesia, Malaysia, Myanmar, Singapore (extirpated), and Thailand.

   • The term extirpated means the species is locally extinct in a specific region, such as Singapore.

5. It is the largest tortoise in mainland Asia.

6. It is considered a keystone species, meaning its presence and role have a disproportionate impact on the ecosystem.

7. It is the only tortoise species that makes a nest above ground, unlike other tortoises that dig holes for nesting.

8. The conservation status of the Asian Giant Tortoise is Critically Endangered, according to the IUCN Red List.

9. It is also listed under Schedule I of the Wildlife Protection Act, 1972, which offers it the highest level of legal protection in India.

10. Major threats to the species include habitat destruction. Another serious threat is collection for local consumption, which reduces wild populations.

Isotope Tagging

1. A South African university has launched the Rhisotope Project in the Waterberg Biosphere Reserve.

2. The project aims to prevent rhino poaching using a method called Isotope Tagging.

3. Isotope Tagging involves the use of radioactive isotopes, also known as radioisotopes.

   • Radioisotopes are unstable forms of elements that emit radiation as they transform into more stable forms.

   • The emitted radiation can be traced and usually causes detectable changes in the substances it interacts with.

4. In this project, low doses of radioactive isotopes are injected into rhino horns using a non-invasive procedure.

   • A non-invasive procedure is a method that does not cause significant harm or require surgery.

5. The tagged horns emit traceable radiation, which can be detected using monitoring devices.

6. These tagged horns can be identified by Radiation Portal Monitors (RPMs).

   • Radiation Portal Monitors (RPMs) are devices used to detect radioactive materials at borders, ports, and airports worldwide.

7. These monitors are originally designed to identify unauthorized nuclear materials.

8. When rhino horns are isotope-tagged, they become easily detectable, even during illegal trafficking attempts.

9. This detection capability acts as a strong deterrent to poachers and smugglers.

National Medicinal Plants Board (NMPB)

1. The National Medicinal Plants Board (NMPB) has signed two strategic MoUs.

2. These MoUs aim to conserve the germplasm of threatened medicinal plants.

   • Germplasm refers to the living genetic resources like seeds or tissues used for plant breeding and conservation.

3. Another goal of the MoUs is to establish a National Medicinal Plants Garden at AIIMS, New Delhi.

4. The NMPB was established in 2000 under the Ministry of AYUSH.

5. It functions as a section within the Ministry of AYUSH, which focuses on traditional systems of medicine.

6. The main objective of NMPB is the development of the medicinal plants sector in India.

7. It does this by coordinating among various departments for effective policy implementation.

8. One of the key functions of NMPB is in-situ and ex-situ conservation of medicinal plants.

   • In-situ conservation means protecting plants in their natural habitats.

   • Ex-situ conservation involves preserving them outside their natural environments, such as in botanical gardens or seed banks.

9. NMPB also works to augment local medicinal and aromatic plant species that have medical significance.

10. It actively promotes research and development in the field of medicinal plants.

11. NMPB raises public awareness through initiatives like Home Herbal Gardens and School Herbal Gardens.

12. The board also supports quality assurance and standardization in the sector.

13. It promotes practices such as Good Agricultural and Collection Practices (GACPs) to ensure quality.

14. NMPB enables the certification of quality for raw drugs, seeds, and planting materials used in traditional medicine.

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