I have only visual studio 2010 in my machine. But, when I look at the visual studio command prompt for "clrver", it shows two versions of CLR are installed in my machine - v2.0.5 and v4.0.3
From this link, I understand only the CLR version v4.0.3 should be available in my machine. http://msdn.microsoft.com/en-us/library/bb822049.aspx
But I am confused how I got v2.0.5. please explain?
Visual Studio 2010 lets you write applications that target multiple versions of the NET Framework (2.0, 3.0, 3.5, and 4.0).
You'll notice from the article you linked to, that .NET Framework versions 2.0, 3.0, and 3.5 all share the same CLR version: 2.0, whereas 4.0 uses a new version 4.0 of the CLR.
So in order for VS2010 to allow you to work on 2.0-3.5 projects it needs to install the 2.0 CLR. That's why it's installed.