UPSC Prelims 2022 — practice paper

Central Ground Water Authority (CGWA) was constituted by the Ministry of Environment and Forests under Section 3(3) of the Environment (Protection) Act, 1986, vide Notification S.O. 38(E) dated 14 January 1997, to regulate and control groundwater development (pursuant to Supreme Court directions). ([cgwb.gov.in](https://www.cgwb.gov.in/old_website/faq.html?utm_source=openai)) Central Ground Water Board (CGWB) is an older technical body established in 1970 by renaming the Exploratory Tubewells Organisation, not under the EPA. ([cgwb.gov.in](https://www.cgwb.gov.in/en/about-cgwb-0?utm_source=openai)) The National Water Development Agency (NWDA) is a registered society set up in 1982 under the Societies Registration Act, 1860, not under the EPA. ([nwda.gov.in](https://www.nwda.gov.in/?utm_source=openai)) Therefore, among the options, only the Central Ground Water Authority is constituted under the Environment (Protection) Act, 1986.

Statement 1 is correct: The acquisition of intangible assets such as new technology/software/patents, which provides economic benefits over several years, is capitalized in accounting and considered capital expenditure (Ind AS 38, Intangible Assets – ICAI Educational Material). ([resource.cdn.icai.org](https://resource.cdn.icai.org/60293asb49121.pdf)) Statement 2 is incorrect: Raising debt or equity is a 'financing' activity; these are not classified as expenses (capital or revenue). Borrowing/issuing share capital is classified as 'financing activities' in the cash flow statement, not as capital/revenue expenditure (IAS 7, Statement of Cash Flows). ([ifrs.org](https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ias-7-statement-of-cash-flows.pdf)) Therefore, only Statement 1 is correct.

1) Ghatsprabha–Telangana is incorrect; Ghatsprabha (Hidkal/Raja Lakshmagoa) reservoir is located in Karnataka (CWC Compendium 2024). 2) Gandhi Sagar–Madhya Pradesh is correct; it is located on the Chambal River in Madhya Pradesh. 3) Indira Sagar–Andhra Pradesh is incorrect; it is located on the Narmada in Khandwa (Madhya Pradesh) (NHPC project page). 4) Maithon–Chhattisgarh is incorrect; it is located on the Barakar River in Jharkhand (bordering West Bengal) (CWC, Sedimentation Assessment of Maithon Reservoir). Therefore, 1, 3, and 4 are incorrectly matched, only 2 is correct; a total of three pairs are incorrect.