Background
Assam has the potential for production of 3 varieties of silk: mulberry, eri and muga. Muga silk of Assam is the unique golden-yellow silk produced only in India. Muga is a wild eco race available only in India, found mainly in Assam and parts of Meghalaya and Nagaland bordering Assam. The Central Silk Board runs the Central Muga Research Institute at Ladoigarh, Jorhat, in Assam, where 8 best muga silkworm races have been isolated and assessed. A Muga Raw Material Bank (MRMB) is functioning at Sibsagar in Assam with three sub-depots, at Dhakukhana and Sualkuchi in Assam and Coochbehar in West Bengal. The Government, through the Central Silk Board, has implemented the centrally sponsored Catalytic Development Programme in collaboration with the State Sericulture Department of Assam to promote Mulberry, Eri and Muga silk production in Assam. The official account records that Assam does not produce the quantity of mulberry silk its consumers demand, mulberry silk yarn being supplied by traders from other parts of the country, and that a few silk fabric traders have been producing Assamese dress materials, particularly Mekhela-Chadar, of mulberry silk at weaving units outside the State. The Silk Mark scheme of the Silk Mark Organisation of India is the quality assurance label for products made of pure silk.
Silk varieties in Assam:
Mulberry, eri and muga
Muga research institute:
Central Muga Research Institute, Ladoigarh, Jorhat
Muga Raw Material Bank:
Sibsagar
Traditional dress material:
Mekhela-Chadar
Why it matters for exams: Muga is the one silk an examiner can ask about as exclusive to India, and the pairing of a silk variety with its research institute and its home district is a standard matching question.
Kerala PSCUPSC
In plain words
Sericulture — The rearing of silkworms and the reeling of their cocoons into raw silk.
Eco race — A population of silkworms adapted to one region's climate and host plants.
Mekhela-Chadar — The two-piece Assamese dress worn by women, woven in silk.
Background
Assam's two main river systems both carry declared national waterways. National Waterway-2 (NW-2) runs on the Brahmaputra from Dhubri to Sadiya (891 km) in Assam and is an operational waterway for shipping and navigation. The navigable channel on NW-2 is maintained at 2.5 m depth between Dhubri and Neamati, 2.0 m depth between Neamati and Dibrugarh and 1.5 m depth between Dibrugarh and Oriumghat, by annual maintenance dredging. National Waterway-16 is the Barak river, where fairway development works were taken up for a navigable channel of the required depth and width between Silchar and Bhanga, a distance of 70 km. 20 National Waterways out of 111 are in the North Eastern Region (NER), and other Assam rivers also carry National Waterway numbers, among them the Subansiri (NW-95) and the Dhansiri or Chathe (NW-31), on which feasibility studies have been completed. Facilities built on NW-2 include a Multimodal terminal at Pandu with Low Level and High Level Jetty, a Ro-Ro terminal at Dhubri, and a Floating terminal at 11 locations on NW-2, among them Hatsingimari, Jogighopa, Tezpur, Silghat, Biswanathghat, Neamati, Bogibeel and Oriumghat. The Brahmaputra and the Barak waterways together map the physical shape of the state: the long Brahmaputra valley in the north and the shorter Barak valley in the south.
NW-2:
Brahmaputra, Dhubri to Sadiya, 891 km
NW-16:
Barak, Silchar to Bhanga, 70 km
National waterways in the North Eastern Region:
20 out of 111
Multimodal terminal:
Pandu
Why it matters for exams: National waterway numbers and their end points are standard objective questions, and NW-2 is the one that fixes the Brahmaputra's navigable stretch inside Assam.
Kerala PSCUPSC
In plain words
Ro-Ro Roll-on roll-off — A ferry service on which vehicles drive straight on and off, used to cross the Brahmaputra.
Maintenance dredging — Repeated removal of silt from a river bed to hold a channel at a declared depth.
Background
The 2,880 MW Dibang Multipurpose Hydroelectric Project of Arunachal Pradesh is to come up near Munli village in Lower Dibang Valley District. The Ministry of Power records that the project will have a 278-metres-high dam, which would be the highest Concrete-Gravity Dam of India, and that it is planned to be constructed with the Roller Compacted Concrete (RCC) technique, making it the highest RCC Dam of the World. The project is to be built at a cost of more than Rs. 31,875 crores. It is designed to generate 11,223 million units of hydropower every year, to be fed into the Northern Grid, with a construction period of 108 months. The project is designed as an energy storage project, with flood moderation as one of the key objectives besides power generation; for flood moderation a capacity of 1,282.60 Million Cubic Meters is to be created by keeping the reservoir below the Full Reservoir Level in the monsoon. Arunachal Pradesh is to receive 12% free power from the project, together with an additional 1% free power for a Local Area Development Fund. The project is stated to have the potential of providing direct employment to 500 people during the construction phase and to 300 people during operation.
Installed capacity:
2,880 MW
Dam height and type:
278-metres-high Concrete-Gravity Dam
Annual generation:
11,223 million units
Free power to the state:
12% plus 1% for Local Area Development Fund
Why it matters for exams: Hydropower in the north-east is a recurring economy and infrastructure theme, and the free-power share of twelve per cent plus one per cent for local area development is the standard arrangement a candidate should be able to explain.
Kerala PSCUPSC
In plain words
RCC Roller Compacted Concrete — A dam-building technique in which stiff concrete is spread and compacted in layers by rollers.
Flood moderation — Holding back part of a river's monsoon flow in a reservoir so that the peak downstream is reduced.
Million units — A unit of electricity output; one million units equals one gigawatt-hour.
Background
Nepal became a member of the United Nations through the adoption of Resolution A/Res/995(X) by the United Nations General Assembly on 14 December 1955. Nepal has held a non-permanent membership of the Security Council during the years 1969-70 and 1988-89. It has taken part in UN-mandated peacekeeping operations since 1958. Nepal became the 147th WTO member on 23 April 2004, and is the first LDC to join the WTO through the full working party negotiation process. The South Asian Association for Regional Cooperation was established on 8 December 1985 and comprises eight members; Nepal is a founding member. The SAARC Secretariat was established in Kathmandu on 16 January 1987. BIMSTEC was established on 6 June 1997 through the adoption of the Bangkok Declaration, and Nepal and Bhutan entered it on 8 February 2004.
United Nations membership:
14 December 1955
Admitting resolution:
A/Res/995(X)
WTO membership:
23 April 2004
SAARC Secretariat:
Kathmandu
Entry into BIMSTEC:
8 February 2004
Why it matters for exams: The year of UN entry, the seat of the SAARC Secretariat and the BIMSTEC founding declaration are recurring one-mark facts, and Nepal's WTO accession is the standard example of an LDC accession.
Kerala PSCUPSC
In plain words
SAARC South Asian Association for Regional Cooperation — The eight-member regional grouping of South Asia, with its Secretariat in Kathmandu.
BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation — A grouping of countries around the Bay of Bengal drawn from South and Southeast Asia.
LDC Least Developed Country — A United Nations category of countries facing the severest structural obstacles to development.
Working party — The WTO committee of existing members that negotiates the terms on which an applicant joins.
Background
Nepal Rastra Bank (NRB), the Central Bank of Nepal, was established in 1956 under the Nepal Rastra Bank Act, 1955. Its functions and objectives were recast by the Nepal Rastra Bank Act, 2058 (2002). Under that Act the bank formulates monetary and foreign exchange policies to maintain the stability of price and balance of payment. It is also charged with maintaining the stability of the banking and financial sectors and with developing a secure, healthy and efficient system of payment. Nepal joined the IMF and IBRD in 1961. The first World Bank technical assistance grant to Nepal was in 1964, a transport survey, and the first credit was in 1969 for telecommunications. The International Finance Corporation has been supporting private sector development in Nepal since 1966.
Central bank:
Nepal Rastra Bank
Established:
1956
Founding law:
Nepal Rastra Bank Act, 1955
Joined IMF and IBRD:
1961
Why it matters for exams: Central banks of India's neighbours and the year a country joined the Bretton Woods institutions are repeat questions in banking and general studies papers alike.
Kerala PSCUPSCBank
In plain words
NRB Nepal Rastra Bank — The central bank of Nepal, which issues the currency and sets monetary policy.
IBRD International Bank for Reconstruction and Development — The original lending arm of the World Bank Group.
Balance of payment — The record of a country's transactions with the rest of the world over a period.
Background
Created in 1959, the Inter-American Development Bank (IDB) is the oldest regional development bank and the largest source of multilateral development financing for Latin America and the Caribbean.
The IDB provides support to the public sector and is part of the IDB Group.
The Group also includes IDB Invest, responsible for private sector operations, and IDB Lab, a trust fund that serves as the Group's innovation laboratory.
IDB Lab was created in 1993.
The IDB and IDB Invest consist of 48 member states, compared to 40 for IDB Lab.
A total of 26 member countries from the Latin America and Caribbean region are engaged in all three entities.
The overarching objectives of the IDB Group are to reduce poverty and inequality and to promote sustainable economic growth in the region.
Created:
1959
Members of the IDB and IDB Invest:
48 member states
Regional members engaged in all three entities:
26 member countries
Private sector arm:
IDB Invest
Innovation laboratory created:
1993
Why it matters for exams: Regional development banks are asked by age, region and headquarters, and the IDB is the one that comes before all the others.
Kerala PSCUPSC
In plain words
Multilateral development financing — Development lending by an institution owned by many member states rather than by one country.
Trust fund — Money contributed by members and held for a stated purpose, administered separately from ordinary capital.
Background
The Economic Review that sets out the state of Kerala's economy before each Budget is the work of the Kerala State Planning Board, the body that also formulates the State's Five-Year and Annual Plans. The Board was constituted in 1967. The Chairperson of the Board is the Chief Minister of the State, and the term of the Board is co-terminus with the term of the ruling Government. Its functions include formulating Five-Year and Annual Plans, preparing the annual Economic Review, monitoring Plan implementation and coordinating the work of the Decentralisation Cell. The Director, Bureau of Economics and Statistics, was the first Member Secretary of the Board. The Chief Secretary to the Government and the Additional Chief Secretary, Finance Department are permanent invitees, and the Board's office is at Pattom in Thiruvananthapuram.
Constituted:
September, 1967
Chairperson:
Chief Minister of the State
Term:
co-terminus with the term of the ruling Government
First Member Secretary:
The Director, Bureau of Economics and Statistics
Office:
Pattom, Thiruvananthapuram
Why it matters for exams: The Planning Board's chairpersonship, its year of constitution and the Economic Review are standard Kerala PSC questions on State economic machinery.
Kerala PSCUPSC
In plain words
Economic Review — The Planning Board's yearly account of how each sector of Kerala's economy has performed.
Co-terminus — Lasting exactly as long as something else, here the government in office.
Background
The body that recommends how much of Kerala's tax revenue goes to its panchayats and municipalities is the State Finance Commission, which the State constitutes under Article 243-I and Article 243-Y of the Constitution of India to review the financial position of the Panchayats and the Municipalities. The Kerala Panchayat Raj Act was passed as early as in 1994, and the first State Finance Commission was constituted immediately after that. The first Commission's award covered the five years from 1996. Kerala has since constituted its Commissions without any break; the Seventh State Finance Commission was constituted in 2024 and its award covers the five-year block that opens in 2026. Kerala was the first State to set up a Cell in the Secretariat to follow up the implementation of the recommendations, in 1997. The Commission's own account says that panchayats in Kerala have transformed into the third stratum of government.
Basis for panchayats:
Article 243-I
Basis for municipalities:
Article 243-Y
First Commission constituted:
23/04/1994
First award period:
April 1996 to March 2001
Seventh Commission constituted:
26/09/2024
Seventh Commission's devolution period:
April 2026 to March 2031
Why it matters for exams: Devolution to local governments is examined through the constitutional article, the State Act and the numbering of the Commissions.
Kerala PSCUPSC
In plain words
Devolution — The transfer of a share of State taxes and of functions to local governments.
Article 243-I — The provision requiring a State to constitute a Finance Commission to review panchayat finances.
Background
The RBI primer says Section 24 (2A) of the Banking Regulation Act 1949, as applicable to co-operative societies, requires every primary (urban) co-operative bank to maintain liquid assets of not less than the percentage the Reserve Bank specifies in the Official Gazette, and not exceeding 40% of its DTL in India. This is in addition to the minimum cash reserve ratio (CRR) requirement. The liquid assets must be in the form of cash, gold or unencumbered investment in approved securities, and this is referred to as the Statutory Liquidity Ratio (SLR) requirement.
Ceiling on the requirement:
40% of DTL
Form of liquid assets:
cash, gold or unencumbered investment in approved securities
Statutory provision:
Section 24 (2A) of the Banking Regulation Act 1949
Why it matters for exams: SLR, CRR and what counts as a liquid asset are core banking and monetary-policy topics.
Kerala PSCUPSCSSCBank
In plain words
DTL Demand and Time Liabilities — The deposit-type liabilities of a bank on which the liquid-assets requirement is calculated.
CRR Cash Reserve Ratio — The minimum cash reserve requirement a bank keeps in addition to SLR.
Background
The RBI primer says a Government Security is a tradeable instrument issued by the Central Government or the State Governments, acknowledging the Government's debt obligation. The Central Government issues both treasury bills and bonds or dated securities, while the State Governments issue only bonds or dated securities, called State Development Loans (SDLs). Dated G-Secs carry a fixed or floating coupon paid on the face value on a half-yearly basis, and their tenor generally ranges from 5 years to 40 years. The Public Debt Office (PDO) of the Reserve Bank of India acts as the registry and depository of G-Secs.
Dated G-Sec tenor:
5 years to 40 years
Coupon payment:
half-yearly
Registry and depository:
Public Debt Office of RBI
Why it matters for exams: Who issues which government security and who keeps the registry are common economy and banking questions.
Kerala PSCUPSCSSCBank
In plain words
SDL State Development Loan — The bonds or dated securities issued by State Governments.
PDO Public Debt Office — The office of the RBI that acts as registry and depository of G-Secs.
Background
The Reserve Bank of India's primer on the government securities market says Treasury bills are short term debt instruments issued by the Government of India and are presently issued in three tenors: 91 day, 182 day and 364 day. They are zero coupon securities and pay no interest. They are issued at a discount and redeemed at face value, so the return is the difference. Cash Management Bills, introduced in 2010, have the generic character of T-bills but run for maturities less than 91 days, to meet temporary cash-flow mismatches of the Government of India.
T-bill tenors:
91 day, 182 day and 364 day
Interest paid:
None (zero coupon)
Cash Management Bill maturity:
less than 91 days
Why it matters for exams: Tenors of T-bills and the zero-coupon feature are standard banking and economy questions.
Kerala PSCUPSCSSCBank
In plain words
CMB Cash Management Bill — A short-term instrument with the character of a T-bill, issued to meet temporary cash-flow mismatches of the Government of India.
Background
Union Minister for Coal and Mines G. Kishan Reddy, along with Chief Minister Pema Khandu, inaugurated the Namchik Namphuk Coal Mine in Changlang district on 6 October 2025, the state's first commercial coal mining project. The mine holds reserves of 1.5 crore tonnes of coal and became operational that day. The event included the handing over of the mining lease and the flagging off of tools and machinery to the Namchik-Namphuk Central Coal Block. The Chief Minister said it would boost the state's economy, create employment and generate steady revenue.
District:
Changlang
Coal reserves:
1.5 crore tonnes
Inaugurated by:
G. Kishan Reddy and Pema Khandu
Why it matters for exams: First commercial coal mine of Arunachal Pradesh; useful for state economy and mining questions.
Kerala PSCUPSCSSC
Background
Prime Minister Narendra Modi inaugurated Donyi Polo Airport, Itanagar and dedicated the 600 MW Kameng Hydro Power Station to the nation on 19 November 2022. It is the first greenfield airport in Arunachal Pradesh and the fourth operational airport of the state, taking the North-East total to 16. The foundation stone was laid by the Prime Minister in February 2019. The Kameng station was developed at a cost of more than Rs 8450 crore in West Kameng district and is meant to make Arunachal Pradesh a power surplus state.
Airport:
Donyi Polo Airport, Itanagar
Kameng station capacity:
600 MW
Kameng cost:
more than Rs 8450 crore
North-East airports:
16
Why it matters for exams: Donyi Polo Airport and the Kameng station are standard Arunachal infrastructure facts.
Kerala PSCUPSCSSC
Background
Prime Minister Narendra Modi virtually dedicated the Sela Tunnel project to the nation from Itanagar on March 09, 2024. The Border Roads Organisation built it at an altitude of 13,000 feet on the road connecting Tezpur, Assam to Tawang in Arunachal Pradesh. Built at a total cost of Rs 825 crore, it provides all-weather connectivity to Tawang across Sela Pass on the Balipara - Chariduar - Tawang Road. It used the New Austrian Tunnelling Method. The foundation stone was laid on February 09, 2019, and construction began on April 01, 2019.
Altitude:
13,000 feet
Cost:
Rs 825 crore
Built by:
Border Roads Organisation
State:
Arunachal Pradesh
Why it matters for exams: Sela Tunnel and Sela Pass are among the most asked border-infrastructure facts about Arunachal Pradesh.
Kerala PSCUPSCSSC
Background
The Subansiri Lower Hydroelectric Project (HEP), located on the Subansiri River at the border of Arunachal Pradesh and Assam, has a total installed capacity of 2000 MW (eight units of 250 MW each). It is being implemented by NHPC Limited. As per the reply of 16 March 2026, two units had been commissioned, with the remaining units planned in a phased manner till Dec'26. On completion it is expected to generate about 7,422 million Units a year, with flood moderation benefits in the Brahmaputra Valley. About 7,000 local workers were employed during construction. Minister of State Shripad Naik gave the information in a written reply in the Rajya Sabha.
Installed capacity:
2000 MW
Units:
eight of 250 MW each
Annual generation:
about 7,422 million Units
Remaining units due:
till Dec'26
Why it matters for exams: Subansiri Lower, a 2000 MW NHPC project on the Arunachal Pradesh-Assam border, is a frequent static and current-affairs link for hydropower and Brahmaputra Valley questions.
Kerala PSCUPSCSSC
Background
The Cabinet Committee on Economic Affairs approved an investment of Rs.26,069.50 crore for the Kamala Hydro Electric Project in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh. The project has an installed capacity of 1720 MW (8 x 210 MW & 1 x 40 MW) and is expected to generate 6870 MU of energy. It will be implemented through a Joint Venture Company between NHPC Limited and the Govt. of Arunachal Pradesh, with an estimated completion period of 96 months. The State will receive 12% free power and an additional 1% for the Local Area Development Fund.
Investment:
Rs.26,069.50 crore
Installed capacity:
1720 MW
Energy:
6870 MU
Completion period:
96 months
Free power to State:
12%
Why it matters for exams: Hydropower in Arunachal Pradesh: capacity, the NHPC joint venture and the 12% free power share are standard facts for economy and state papers.
Kerala PSCUPSCSSC
In plain words
CCEA Cabinet Committee on Economic Affairs — The Union Cabinet committee that approves large investment proposals.
LADF Local Area Development Fund — A fund of 1% of project revenue for the host area.
6 October 2026
Under the 16th Finance Commission, local bodies in Kerala are expected to receive ₹19,991 crore over 2026-2031.
The Gulati Institute of Finance and Taxation holds a one-day workshop on 6 October on 'The Finance Commission and Local Governments in Kerala: Challenges and the Way Forward'.
Local Self-Government Minister K M Shaji is to inaugurate it at 10.30 am.
The workshop will examine how Finance Commission grants to local bodies can be used effectively.
It is the first step of the initiative of the Institute's Local Fiscal Research Cell to strengthen local public finance in Kerala.
Expected local body share:
₹19,991 crore
Period:
2026-2031
Workshop date:
6 October
Why it matters for exams: Finance Commission awards and local body finance link Kerala and Indian polity and economy syllabi.
Kerala PSCUPSC
6 October 2026
Supplyco's Managing Director has been permitted to release ₹1,62,51,235 as State Incentive Bonus for 25,75,473 kg of paddy procured together from the Rani and Chithira kayal fields in Alappuzha district.
Food Minister Anoop Jacob said the amount was released urgently on the direction of Chief Minister V D Satheesan.
Kerala pays a State Incentive Bonus of ₹6.31 per kg to farmers, over and above the Central minimum support price.
The Centre had asked the State to stop the extra bonus, but Kerala's stand is to keep paying it.
The fields, Rani (467 acres) and Chithira (469 acres), are farmed together under a contract with the District Collector since 2014, so the money goes in the Collector's name.
Bonus sanctioned:
₹1,62,51,235
Paddy procured:
25,75,473 kg
Bonus rate:
₹6.31 per kg
Why it matters for exams: Paddy procurement, Supplyco and the State Incentive Bonus over the MSP are recurring Kerala agriculture topics.
Kerala PSCUPSC
Background
As per clause (1) of article 280 of the Constitution, the Finance Commission is to be constituted every fifth year or earlier.
A Finance Commission normally takes about two years to make its recommendations.
Its terms of reference require recommendations on three matters. The first is the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution, and the allocation between the States of their respective shares.
The second is the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India, and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution.
The third is the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in that State, on the basis of the recommendations made by the Finance Commission of the State.
The five-year rhythm has slipped in practice: the Eleventh Finance Commission was constituted six years after the Tenth, and the Fourteenth Finance Commission was constituted five years and two months after the Thirteenth.
An Advance Cell was formed in the Ministry of Finance to oversee preliminary work, pending the formal constitution of the Sixteenth Finance Commission.
Constitutional provision:
Clause (1) of article 280
Periodicity:
Every fifth year or earlier
Time taken to report:
Normally about two years
Grants-in-aid to States:
Under article 275, out of the Consolidated Fund of India
Tax devolution provision:
Chapter I, Part XII of the Constitution
Precedent cited for a longer gap:
Eleventh Finance Commission, six years after the Tenth
Why it matters for exams: Article 280, the five-year cycle and the three terms of reference - tax devolution, grants-in-aid under Article 275 and funds for local bodies - are the standard questions on Centre-State fiscal relations.
Kerala PSCUPSCSSC
In plain words
Grants-in-aid Grants-in-aid of the revenues of the States — Sums paid to a State out of the Consolidated Fund of India under article 275, on principles the Finance Commission recommends.
Terms of Reference Terms of Reference — The list of matters a Finance Commission is required to make recommendations on, settled when it is constituted.
Background
The Thrissur District Collector has directed the National Highways Authority of India to examine a barrier-free tolling system at Paliyekkara on the lines of the model adopted at Tambaram in Tamil Nadu, a direction given at a meeting of the National Highway Task Force chaired by the Collector on traffic delays and safety gaps along the stretch. Paliyekkara stands in Thrissur district on National Highway 544. Over seven financial years the plaza collected ₹925 crore, more than any other toll booth in Kerala, and figures placed in Parliament by the Ministry of Road Transport and Highways put its daily average takings at ₹5.33 lakh. Its annual collections routinely cross the ₹100-crore mark. Kerala's other toll plazas are at Kumbalam, Ponnarimangalam, Kollam, Thiruvallam, Panniyankara, Pampampallam and Thiruvangad; of these only Panniyankara and Pampampallam have also crossed ₹100 crore in yearly revenue.
Highway:
National Highway 544
District:
Thrissur
Collection over seven financial years:
₹925 crore
Daily average takings:
₹5.33 lakh
Other plazas crossing ₹100 crore a year:
Panniyankara and Pampampallam
Why it matters for exams: Toll plazas are a standing question on Centre-State infrastructure: who builds the highway, who collects the toll and who convenes the district forum that reviews it.
Kerala PSCUPSC
In plain words
NHAI National Highways Authority of India — The Central authority that develops and maintains national highways and oversees toll collection on them.