Explanation:
• Statement I – Correct:
The call money rate is the overnight rate at which banks borrow or lend to one another.
When this rate remains consistently below the repo rate, it reflects excess liquidity in the system. Banks do not need to borrow from RBI (via repo) because cheaper funds are available in the market.
• Statement II – Correct:
The Standing Deposit Facility (SDF) is the floor of the Liquidity Adjustment Facility (LAF) corridor.
If the call rate hovers near the SDF, it implies banks have surplus funds and prefer to park them with RBI (at SDF rate) instead of lending, which reflects weak credit demand or very high liquidity.
• Statement III – Incorrect:
If the call rate is below the repo rate, it means banks are borrowing at lower, not higher, rates than the repo.
This is favorable to borrowers and contrary to RBI’s intent if the repo rate was meant to be the operative benchmark. So the statement misrepresents the relationship.
• Answer: (a) I and II only
Explanation:
• Statement I – Correct:
If the call rate persistently stays below the repo, the transmission mechanism of monetary policy weakens.
The RBI might absorb liquidity (tighten) through tools like VRRR auctions, CRR hike, or OMOs to push the call rate back toward the repo, which is meant to be the operative rate.
• Statement II – Correct:
In such a liquidity surplus situation, banks have no incentive to borrow at the repo rate, which is higher than the market rate.
So they avoid RBI’s repo windows and rely on interbank or excess funds.
• Statement III – Incorrect:
The situation is not necessarily RBI’s deliberate policy.
The RBI may be concerned when call rates deviate from the repo rate for too long—it can distort monetary signals.
So this is not an intended encouragement, but often a side effect of persistent surplus liquidity.
• Answer: (c) I and II only
Explanation:
• Statement I – Correct:
Karnataka consistently contributes 65–70% of India’s coffee production, especially Arabica and Robusta varieties, mainly from districts like Chikkamagaluru, Kodagu, and Hassan.
• Statement II – Correct:
Coffee in India is cultivated in the Western Ghats (Karnataka, Kerala, Tamil Nadu) and also in Eastern Ghats regions such as Araku Valley (Andhra Pradesh) and Koraput district (Odisha). This list is precise and matches official Coffee Board data.
• Statement III – Correct:
India exports over 70% of its total coffee output.
Top importers include Italy, Germany, Russia, and Belgium—with Italy consistently being among the top 3.
• Answer: (d) I, II and III
Explanation:
• Statement I – Correct:
IFFCO launched the world’s first Nano Urea in 2021, followed by Nano DAP in 2023. Both are considered landmark innovations in sustainable and precision agriculture.
• Statement II – Correct:
In 2025, IFFCO announced the setting up of its first overseas nano fertiliser plant in Brazil, through a partnership with Nanofert, a Brazilian firm. This marks a significant step in expanding India’s agri-tech footprint globally.
• Answer: (c) Both I and II
Explanation:
• Statement I – Correct:
The Subarnarekha River originates near Piska village close to Ranchi, Jharkhand, and flows through Jharkhand, Odisha, and West Bengal before emptying into the Bay of Bengal.
• Statement II – Correct:
Hundru Falls, a well-known tourist site and waterfall in Jharkhand, is located on the Subarnarekha River.
• Statement III – Correct:
The Subarnarekha Waterway has been declared as National Waterway–96 under the National Waterways Act, 2016.
• Answer: (d) I, II and III
Explanation:
• Statement I – Correct:
CaTRAT (Camera Trap data Repository and Analysis Tool) uses artificial intelligence to classify species from camera trap images. It has been applied in snow leopard habitats in the Himalayas.
• Statement II – Incorrect:
M-STrIPES does support GPS-based patrolling and integrates photographic evidence as part of habitat and population monitoring.
• Statement III – Correct:
SIMBA and E-GujForest are AI-based platforms deployed in Gujarat for lion conservation and surveillance, including real-time monitoring and alert systems.
• Answer: (b) I and III only
Explanation:
• Statement I – Correct:
Under ULLAS (New India Literacy Programme), the objective is to educate non-literates aged 15 years and above, with a target of covering 5 crore learners by 2027.
• Statement II – Incorrect:
ULLAS is implemented in a hybrid mode, involving both online and offline methods (e.g., volunteer-led classes, mobile apps, and digital platforms).
• Statement III – Correct:
As per recent reports, Tripura has been declared the third fully literate state, after Mizoram and Goa, having achieved 95% literacy among those aged 15 and above under the ULLAS programme.
• Answer: (c) I and III only
Explanation:
• Statement I – Incorrect:
Qatar shares a land border only with Saudi Arabia — not with the UAE.
The claim about land borders with both Saudi Arabia and UAE is factually incorrect, although Qatar has maritime boundaries with Iran, Bahrain, and the UAE.
• Statement II – Correct:
Qatar has no perennial rivers or lakes and depends heavily on desalination for its freshwater supply. Groundwater and rainfall contribute minimally due to the arid climate.
• Statement III – Incorrect:
The al-Udeid Air Base is located southwest of Doha, not near the Dukhan hills (which are to the northwest).
• Answer: (d) II only
Explanation:
• Statement I – Correct:
As of the June 2025 update, the IBAT Alliance is made up of four major conservation organisations:
◦ BirdLife International
◦ Conservation International
◦ IUCN
◦ UNEP-WCMC (United Nations Environment Programme World Conservation Monitoring Centre)
• Statement II – Correct:
The Alliance helps fund and maintain three critical biodiversity datasets:
◦ The World Database on Protected Areas (WDPA)
◦ The IUCN Red List of Threatened Species
◦ The World Database of Key Biodiversity Areas (WDKBA)
• Statement III – Incorrect:
The IBAT Alliance is not an entity under the Convention on Biological Diversity (CBD), nor is it headquartered in Geneva.
While the member organisations engage with CBD processes, IBAT is a standalone collaborative platform, and UNEP-WCMC, one of its key partners, is based in Cambridge, UK — not Geneva.
• Answer: (a) I and II only
Explanation:
Statement 1 – Correct:
India’s Nuclear Energy Mission emphasizes indigenous development, but also allows room for collaboration or licensing of international designs. This mix of strategies is consistent with
Statement 2 – Correct:
One of the main advantages of SMRs is their modularity and deployment flexibility, making them well-suited for distributed power supply, including in remote or off-grid areas. This aligns with both India’s energy access goals and global trends.
Statement 3 – Incorrect:
The IAEA does not define SMRs with a rigid upper cap of “strictly less than 300 MWe.” Instead, it provides a range-based guideline, usually up to 300 MWe, with room for country-specific variations.
Statement 4 – Correct:
Budget 2025–26 allocates ₹20,000 crore towards SMR development — clearly above ₹15,000 crore.
Answer: (a)
Bihar to Host First Atomic Power Plant Under New Nuclear Energy Mission
Bihar is set to be among the first six states in India to establish an atomic power plant under the recently launched Nuclear Energy Mission. This development marks a significant shift in India's clean energy roadmap.
On June 24, 2025, Union Power Minister Manohar Lal Khattar announced that the Centre had approved a nuclear power facility in Bihar based on Small Modular Reactor (SMR) technology. This initiative follows a key allocation of ₹20,000 crore for the mission in the Union Budget 2025–26, aiming to expand access to sustainable and dependable nuclear power across the nation while improving regional energy resilience.
What Are Small Modular Reactors (SMRs)?
SMRs represent a newer class of nuclear reactors designed to be smaller, more cost-effective, and adaptable compared to traditional reactors. Their advanced safety features and modular design make them ideal for integration into smaller power grids and remote locations.
India is increasingly turning to SMRs as a cornerstone of its broader energy transition strategy. These compact reactors, with capacities from below 30 MWe to over 300 MWe, offer a versatile energy option. Factory-based manufacturing of SMRs helps reduce construction timelines and project costs—making them suitable for both urban and isolated regions.
India’s strength in operating Pressurized Heavy Water Reactors (PHWRs) provides a solid foundation for developing indigenous SMRs. Their integration could support land-efficient power generation, lower fossil fuel use, and further India’s Paris Agreement commitments.
Government Measures to Expand Nuclear Energy Capacity
The Indian government is actively pursuing clean energy goals by expanding nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031–32. This includes:
- Ongoing construction of 10 new reactors totaling 8,000 MW across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh.
- Preliminary work on an additional 10 reactors scheduled for phased development by 2031–32.
- In-principle clearance for a 6 x 1208 MW nuclear project at Kovvada, Andhra Pradesh, in collaboration with the United States.
A significant milestone was achieved on September 19, 2024, when Unit-7 of the Rajasthan Atomic Power Project (RAPP-7) achieved criticality. This event marked the beginning of a controlled nuclear fission reaction in one of India’s largest and fully indigenous reactors—highlighting India's advancement toward nuclear self-reliance and clean energy leadership.