What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licences for mineral exploration

Select the correct answer using the code given below.

[UPSC Civil Services Exam – 2016 Prelims]

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (b)        

Explanation:

• District Mineral Foundation (DMF) is a non-profit body primarily established in those districts affected by the mining works. Hence statement 2 is correct.
• It works for the interest and benefit of persons and areas affected by mining-related operations.
• It is funded through the contributions from miners.
• It is mandatory to set up District Mineral Foundations (DMFs) in all districts in the country affected by mining-related operations.
• It was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.
• The Operation and regulation of DMF come under the respective State Government.
• It does not promote mineral exploration activities in mineral-rich districts. Hence Statement 1 is incorrect
• It does not authorize states to issue a licence for mineral exploration. Hence Statement 3 is incorrect.