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

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

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

Select the correct answer using the code given below.

1 and 2 only
2 only
1 and 3 only
1, 2 and 3
This question was previously asked in
UPSC IAS – 2016
Statement 1 is incorrect. Promoting mineral exploration is not the primary purpose of District Mineral Foundations (DMFs). Statement 2 is correct. DMFs are established specifically to work for the interest and benefit of persons and areas affected by mining-related operations. Statement 3 is incorrect. The authority to issue mineral exploration licenses lies with the State Governments (for specified minerals) and the Central Government (for others) under the Mines and Minerals (Development and Regulation) Act, 1957, not with DMFs. Therefore, only statement 2 is correct.
District Mineral Foundations (DMFs) are statutory bodies in India established under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), as amended in 2015. They are non-profit trusts set up in mining districts to work for the interest and benefit of persons and areas affected by mining-related operations.
The funds for DMFs are collected from mining leaseholders as contributions, calculated as a percentage of the royalty paid. These funds are meant to be used for various developmental and welfare activities identified in the affected areas, such as healthcare, education, sanitation, environmental protection, etc., under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).