Q62 · UPSC Prelims 2016 · Set A · Economy

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What is/are the purpose/purposes of 'District Mineral Foundations' in India?1.Promoting mineral exploration activities in mineral-rich districts2.Protecting the interests of the persons affected by mining operations3.Authorizing State Governments to issue licenses for mineral explorationSelect the correct answer using the code given below

A 1 and 2 only
B 2 only
C 1 and 3 only
D 1, 2 and 3

Correct answer: (b) 2 only

Explanation

  1. A

    1 and 2 only

    Statement 1 (promoting mineral exploration in mineral-rich districts) and statement 2 (protecting persons affected by mining) together overstate DMF. Exploration and licensing remain with the State under the MMDR framework; DMF is a trust for affected people, not an exploration agency. 1 and 2 only is not the key.

  2. B

    2 only

    District Mineral Foundations were created by the MMDR Amendment Act, 2015 to work in the interest of persons and areas affected by mining operations, using a share of royalty. They do not promote exploration as their purpose and they do not authorise States to issue mineral licences. Statement 2 only is therefore the official key.

  3. C

    1 and 3 only

    Statements 1 and 3 both assign exploration and licensing roles that belong to the existing mineral-concession regime, not to DMF. This pair is wrong.

  4. D

    1, 2 and 3

    All three would treat exploration and State licensing as DMF purposes. They are not, so this option is not the key.

Summary. Official key is (b) 2 only. DMF is a district-level trust funded by a prescribed share of royalty so that mining-affected communities get compensation in the form of welfare and infrastructure (PMKKKY guidelines). Mineral exploration and the grant of licences remain statutory functions of the State and the Union as laid down in MMDR and mineral concession rules. Statements 1 and 3 therefore fail. Only the affected-persons purpose is correct.

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