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.
- (a) 1 and 2 only
- (b) 2 only ✓ UPSC's answer
- (c) 1 and 3 only
- (d) 1, 2 and 3
Why the answer is (b)
• District Mineral Foundations were created by the MMDR Amendment Act, 2015 (Section 9B) in every mining district as non-profit trusts funded by a share of royalty (10–30%).
• Their purpose is to work for the interest and benefit of persons and areas affected by mining, through the Pradhan Mantri Khanij Kshetra Kalyan Yojana — statement 2.
• They neither promote exploration (1) — that is the National Mineral Exploration Trust's role — nor authorise licences (3).
• Hence 2 only, option (b).
Why the other options are wrong
- (a) 1 and 2 only
- Exploration promotion is the NMET's role, not DMF's.
- (c) 1 and 3 only
- DMFs neither promote exploration nor issue licences.
- (d) 1, 2 and 3
- Statements 1 and 3 are wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.