UPSC Prelims 2016 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.

Explanation: 

• District Mineral Foundations (DMFs) are non-profit trusts that were formed under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015.
  
  

• The fund for DMF is collected at the district level. In all states' DMF rules, some high-priority areas are identified which are entitled to get at least 60 per cent of the DMF fund.
  
  
• Its objective is to work in the interest and benefits of persons and areas affected by mining-related operations in a manner as may be prescribed by the State Government. So, statement 2 is correct.
  
  
• The usage of the fund includes important and critical concerns such as healthcare. Thus, DMF funds can be utilized to increase and improve healthcare facilities, screening and testing facilities and other required resources.
  
  
• As per Section 9 B of the MMDR Act, 1957, the purpose of the District Mineral Foundation Trust is to benefit the people and areas affected by mining activities.  mineral exploration activities and State Governments licenses issue authorization are not covered under the objectives of the DMF. So, statement 1 and statement 3 are not correct.
  
  

Therefore, option (2) is the correct answer.

Relevance: On 16 September 2015, the Central Government issued a notification directing states to set up DMF.

Subject: Polity | Governance