I need to create pages library. The pages in the library should display the custom webpart which has been deployed into the site collection. How to do this in Sharepoint 2010?
Can I create a content type of custom page which has the webpart in it?
You'll want to create a page layout. As part of that page layout, you would include your web part. Then new pages provisioned in the library utilizing that page layout will have the web part included. The below link explains the process.