Daily Current Affairs- 13th August 2025

Daily Current Affairs- 13th August 2025

E20 Fuel in India: Meaning, Benefits, and Government Clarification

In the News: The Ministry of Petroleum and Natural Gas and other government bodies issued multiple clarifications addressing public concerns about E20 fuel—a petrol blend containing 20% ethanol. They emphasized that the effects on mileage and engine health are minimal, while highlighting environmental, economic, and energy-security benefits.

Key Points:

• Meaning of E20 Fuel : E20 fuel is a blend of 20% ethanol and 80% gasoline. Ethanol, a biofuel, is produced from renewable plant-based sources such as sugarcane, corn, or biomass.  
• Government’s Clarifications & Reassurances : The government dismissed claims that E20 severely affects mileage, engine health, or insurance coverage, calling such concerns “fear-mongering” or based on misleading information. They clarified that using E20 does not void vehicle insurance—any rumors otherwise stem from misinterpretation of posts on social media.  Studies by ARAI, Indian Oil, IIP, and SIAM show negligible engine damage and only a 1–2% drop in fuel efficiency in E20-compatible vehicles.
• Environmental & Economic Benefits : Higher Performance Quality: E20 enhances the fuel's octane rating—from RON 91 to around RON 95—improving anti-knocking and delivering better acceleration and smoother ride quality, particularly in modern engines.
• Emission Reduction: Carbon emissions drop by ~30% compared to E10, based on lifecycle studies by NITI Aayog showing up to 65% (sugarcane ethanol) and 50% (maize ethanol) lower GHG emissions vs. petrol.
• Boost to Agriculture & Economy: E20 roll‑out supports farmers by increasing ethanol demand, contributing up to ₹40,000 crore in farmer payments and saving approximately ₹43,000 crore in foreign exchange due to reduced oil imports in 2024–25 alone. Since 2014‑15, blending has saved over ₹1.44 lakh crore in foreign exchange, substituted 245 lakh tonnes of crude oil, and cut CO₂ emissions equivalent to planting 30 crore trees.
• Vehicle Compatibility : Most vehicles manufactured post‑2023 are already E20‑compliant. Older vehicles might see a marginal drop in efficiency, but this can be mitigated through updated engine tuning and E20-compatible components. Some automakers (e.g., Maruti, Hyundai, Tata) are rolling out vehicles with fuel systems and engines adapted for E20.  Globally, ethanol blends up to E25 are widely used—Brazil, for instance, has long operated on E20–E27.5 with high flex-fuel compatibility.
• Speed of Rollout : India achieved its E20 rollout goal five years ahead of the original 2030 target, marking a significant acceleration in its sustainable energy transition.

Indian Ports Bill, 2025

In the News: The Lok Sabha passed the Indian Ports Bill, 2025, aiming to modernize India’s port governance by replacing the nearly century-old Indian Ports Act of 1908. The legislation marks a significant step in aligning India's maritime sector with contemporary global standards

Key Points:

• Bill Passed – August 12, 2025 : The Lok Sabha approved the Indian Ports Bill, 2025, via voice vote amid opposition protests. The legislation is intended to simplify port procedures, digitalize operations, and promote ease of doing business (EoDB).
• Replacing the Indian Ports Act, 1908 : The new Bill replaces colonial-era provisions, introducing modern, streamlined regulations to foster integrated port development across the country.
•  Institutional Framework: Maritime State Development Council (MSDC) : The Bill establishes the Maritime State Development Council, headed by the Union Minister for Ports, Shipping and Waterways, with representatives from coastal states, the Indian Navy, Coast Guard, and MoPSW. It will advise on national port development, tariff transparency, and data-driven planning.  
• State Maritime Boards & Dispute Resolution Committees : Statutory recognition is given to State Maritime Boards, which will manage non-major ports. The Bill mandates Dispute Resolution Committees at the state level for port-related disputes, with appeals allowed to the High Courts. Civil courts are excluded from these matters.
•  Tariff Regulation and Data Transparency : Major port tariffs will continue to be set by their Port Authorities or Boards. For non-major ports, State Maritime Boards or authorized concessionaires will set tariffs. All tariffs must be published electronically, accompanied by transparent collection and submission of port data (e.g., cargo volumes, vessel traffic).  
• Environment, Safety & Sustainability : The Bill mandates environmental compliance—including adherence to MARPOL and the Ballast Water Management Convention—as well as waste reception, disaster preparedness, pollution control, and emergency management procedures. Ports will also be subject to central audits with penalties for violations.
• Efficiency, Connectivity & Economic Benefits : By digitizing operations and simplifying processes, the Bill is expected to reduce logistics costs, speed up cargo movement, and enhance hinterland connectivity. It also foresees job creation in port operations, logistics, warehousing, and allied sectors, and improved infrastructure for exporters and MSMEs.
• Fostering Cooperative Federalism and Maritime Vision 2047 : The Bill embodies PM Modi’s “Ports for Prosperity” vision, reinforcing cooperative federalism through shared decision-making via the MSDC, and supports long-term maritime growth aligning with India’s ambition to become a global maritime power by 2047.

SHRESTH: India’s First State Health Regulatory Excellence Index

In the News: The Union Health Ministry introduced SHRESTH—the first-ever State Health Regulatory Excellence Index. Launched virtually by Union Health Secretary Punya Salila Srivastava and the Drugs Controller General of India, Dr Rajeev Singh Raghuvanshi, this initiative aims to benchmark and bolster state-level drug regulatory systems through a transparent, data-driven framework.

Key Points:

•  What Is SHRESTH?

SHRESTH stands for State Health Regulatory Excellence Index, a virtual gap-assessment tool that ranks and strengthens drug regulatory authorities across Indian states and Union Territories to ensure consistent drug safety and quality.

• Administering Authority & Cooperative Launch : Championed by the Ministry of Health & Family Welfare, SHRESTH is implemented by the Central Drugs Standard Control Organization (CDSCO). It was launched in a virtual meeting that included health secretaries, principal health secretaries, and drug regulators from across states and UTs.
• Goals of the Index : Facilitate transparent, data-driven benchmarking of state drug regulators.Promote targeted improvements in areas like infrastructure, digitization, and human resources.Enhance public trust in the quality and efficacy of medicines.
•  Evaluation Framework & Themes : Manufacturing States: Assessed on 27 indicators across five themes—Human Resources, Infrastructure, Licensing Activities, Surveillance Activities, and Responsiveness.
• Primarily Distribution States/UTs: Evaluated on 23 indicators under the same thematic areas.
• Data Flow & Scoring Mechanism : States must submit data on predefined metrics to the CDSCO by the 25th of every month. Scoring occurs on the 1st of the following month, with rankings shared transparently across all states and UTs.
• Global Alignment & Aspirations : SHRESTH builds on India’s WHO-recognized Maturity Level 3 (ML3) status for vaccine regulation, with the aim to elevate medicine regulation to the same global benchmark. This aligns with WHO’s Global Benchmarking Tool under WHA Resolution 67.20.

Cabinet Approves ₹4,600 Crore Semiconductor Manufacturing Projects in Odisha, Punjab, and Andhra Pradesh

In the News: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). With these approvals, ISM now counts a total of ten sanctioned semiconductor facilities, cumulatively valued at approximately ₹1.6 lakh crore across six states.

Key Points:

• Overview of the Cabinet Approval : Four new semiconductor projects were approved with a combined investment of ₹4,600 crore, bringing the count of ISM-endorsed facilities to ten, with total investments reaching around ₹1.6 lakh crore spread across six states. 
•  Project Locations & Companies:

• Odisha: Two units by SiCSem and 3D Glass Solutions Inc., both to be built in Bhubaneswar’s Info Valley.
• Punjab: Expansion by Continental Device India Pvt Ltd (CDIL) in Mohali.
• Andhra Pradesh: A new facility by Advanced System in Package (ASIP) Technologies. Technological Capabilities & Capacities:
• SiCSem (Odisha): First commercial compound semiconductor fab, with annual capacity of 60,000 wafers and 96 million packaged units, producing for sectors like defense, EVs, railways, data centres, appliances, and solar inverters. 

• 3D Glass (Odisha): Advanced glass-based semiconductor packaging (3D heterogeneous integration) technology, enabling miniaturization and performance efficiency in advanced electronics. 
• CDIL (Punjab): Expanding production of high-power discrete semiconductors—MOSFETs, IGBTs, Schottky diodes, transistors—using silicon and SiC, with a capacity of around 158.38 million units annually. 
• ASIP (Andhra Pradesh): Under a technology tie-up with South Korea’s APACT Co. Ltd, the plant will produce 96 million units annually meant for mobile phones, set-top boxes, automobile electronics, and general consumer products.
• Employment & Ecological Impact: The four projects collectively are expected to generate about 2,034 direct skilled jobs, in addition to numerous indirect employment opportunities across the electronics manufacturing ecosystem.

Two More Defence Industrial Corridors to Boost India’s Self-Reliance in Defence

In the News:  The Government of India announced the approval of two new Defence Industrial Corridors, one each in Maharashtra and Assam, as part of the Atmanirbhar Bharat initiative. These corridors are expected to strengthen India's self‑reliance in defence manufacturing, generate employment, and foster regional economic development. This expansion builds on the initial defence corridors in Uttar Pradesh and Tamil Nadu, which have already demonstrated significant progress.

Key Points:

• New Corridors Approved : Two new Defence Industrial Corridors are set to be established—one in Maharashtra and another in Assam.
•  Purpose & Strategic Goal : These corridors aim to boost indigenous defence production, Atmanirbhar Bharat, job creation, and economic empowerment in defense sectors.  Background: Existing Corridors
• India currently operates two defence corridors:

• Uttar Pradesh Defence Industrial Corridor (UPDIC)
• Tamil Nadu Defence Industrial Corridor (TNDIC)

• Both were launched to promote local manufacturing, reduce imports, and support exports.  
• Progress in Existing Corridors:

• In Uttar Pradesh, ₹28,475 crore in investments have been attracted; 57 companies allocated land, with 87 more in the pipeline. A BrahMos missile manufacturing unit was inaugurated in Lucknow, and an integration and testing facility covers 200 acres.
• The corridors have created thousands of jobs and facilitated development in high-tech defence sectors, particularly with supportive state infrastructure like single-window clearances and reliable utilities.

•  Proposed Corridor Details:

• Maharashtra: Plans include industrial clusters in regions like Sambhajinagar–Ahilyanagar–Pune and Nashik, aimed at positioning the state as a future hub for defence and aerospace manufacturing.
• Assam: A corridor in the northeast is expected to boost regional economic growth and strengthen the nation’s strategic footprint in defense production.

US trade truce with China: What is the agri trump card that Beijing holds

In the News: Amid a recent 90-day extension of the U.S.–China trade truce—delaying looming tariff hikes—attention has turned to a strategic leverage point Beijing is wielding: its agri-commodity buying power. China’s dramatic reduction in U.S. farm imports, particularly soybeans, has become a key bargaining chip, forcing the U.S. to continue negotiations.

Key Points:

• Trade Truce Extended : The U.S. and China agreed to extend their tariff truce for another 90 days, delaying increases that could have soared to triple-digit rates. This pause provides a critical window for ongoing dialogue and potential summit talks.
  • China’s Agri-Leverage: The “Trump Card”: China has cut U.S. agricultural imports by nearly half—from $13.1 billion (Jan–Jun 2024) to $6.4 billion (Jan–Jun 2025). Soybean imports dropped drastically to just $2.5 billion, down from $17.9 billion in 2022.  Beyond soy, U.S. exports hit by this shift include corn, barley, cotton, beef, pork, poultry, tree nuts, and forest products. China is increasingly sourcing these from countries like Brazil, Argentina, Canada, and Paraguay.
  • Why It Matters :
  • Agriculture is a political hotspot in the U.S., especially across the “Corn Belt” states. China’s move undercuts American farmers in states from Iowa and Illinois to Texas and California.
  • This gives China strong leverage to push for continued talks and delay tariff escalation, as the U.S. aims to temper the political fallout in key farming regions.
  • U.S. Reaction : President Trump publicly urged Xi Jinping to “quickly quadruple” U.S. soybean imports, in an effort to support American farmers and reduce the trade deficit.
  • Strategic Dual Leverage : Agriculture isn’t China’s only leverage. It also controls critical rare-earth elements, essential for U.S. industries like defense, aerospace, and semiconductors. Combined, these dual pressures—agricultural and mineral—shape a compelling negotiating edge.

India Signs Trade Cooperation Pact with Zambia to Boost Cooperative Exports

In the News: India and Zambia signed a Memorandum of Understanding (MoU) to promote cooperative trade alliances between their countries. Cooperation Minister Amit Shah highlighted that the agreement is aimed at strengthening India’s cooperative export ecosystem, with support from Indian missions abroad to connect cooperatives with importers and provide vital market intelligence.

Key Points:

• MoU Signing – July 18, 2025 : India and Zambia formalized their cooperation in trade between their cooperative sectors through an MoU signed on July 18. This agreement establishes a structured framework for trade alliances between cooperative organizations of both nations.
• Strengthening the Cooperative Export Ecosystem : The Ministry of Cooperation is using India’s diplomatic missions to provide market information to National Cooperative Exports Ltd (NCEL), facilitating connections with potential importers in Zambia and other countries.
• Global Expansion of NCEL Partnerships : In addition to the Zambia agreement, NCEL has executed MoUs with Sinton Vantage Trading in Senegal. PT Sinton Surini Nusantara in Indonesia. These partnerships are helping to expand India’s cooperative exports into Africa and Southeast Asia.