Question 48 from UPSC CSE 2016 - Economy

Question

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 licenses for mineral exploration.
Select the correct answer using the code given below.

IASCODEX · Accepted Answer

Correct Option: B. 2 only

Strategy: Identify the core mandate of 'District Mineral Foundations'. Their primary function, as implied by their name and establishment context, is welfare-oriented for those impacted by mining. Statement 2 directly aligns with this welfare objective. Statement 1, promoting exploration, is a function of mining agencies, not a welfare trust. Statement 3, authorizing licenses, is a regulatory function of state governments, not DMFs. Therefore, only statement 2 is accurate.

Key Info: # District Mineral Foundations (DMFs)

- **Establishment:** Mandated by the Mines and Minerals (Development and Regulation) Amendment Act, 2015, DMFs are non-profit trusts established in all districts affected by mining-related operations.
- **Primary Purpose:** Their overarching objective is to work for the interest and benefit of persons and areas affected by mining-related operations. This specifically includes protecting the interests of individuals and communities impacted by mining.
- **Funding:** DMFs are funded by contributions from miners, payable as a percentage of the royalty (currently 10% for leases granted on or after January 12, 2015, and 30% for those granted before this date) to the respective State Governments.
- **Governance:** The manner of operation and management of DMFs falls under the jurisdiction of the relevant State Government. States formulate rules for the DMFs, and their funds are utilized under the 'Pradhan Mantri Khanij Kshetra Kalyan Yojana' (PMKKKY).
- **Activities:** Funds from DMFs are used for various developmental and welfare projects in mining-affected areas, focusing on health, education, sanitation, skill development, drinking water, and environmental protection.
- **Distinction from other functions:** It is important to distinguish DMFs' welfare role from other functions related to mining: mineral exploration (conducted by Geological Survey of India, Mineral Exploration Corporation Limited, or private entities) and issuance of mineral licenses (a regulatory function of State Governments under the MMDR Act).

IASCODEX · Answer

Option A: 1 and 2 only

IASCODEX · Answer

Option C: 1 and 3 only

IASCODEX · Answer

Option D: 1, 2, and 3