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.
2 only
Understanding District Mineral Foundations (DMFs) in India
District Mineral Foundations (DMFs) are trusts established under the Mines and Minerals (Development and Regulation) Amendment Act, 2015. The primary objective behind setting up these foundations is to work for the interest and benefit of persons and areas affected by mining-related operations.
Analyzing the Stated Purposes of District Mineral Foundations
Let's carefully examine each of the purposes listed in the question to determine which one(s) accurately reflect the role of District Mineral Foundations:
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Promoting mineral exploration activities in mineral-rich districts: Mineral exploration activities are primarily the responsibility of government geological bodies (like GSI) or private companies that obtain prospecting licenses or mining leases from the respective state governments. District Mineral Foundations are welfare trusts focused on the people and areas affected by mining, not on promoting the exploration phase itself.
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Protecting the interests of the persons affected by mining operations: This is the core mandate of District Mineral Foundations. The funds collected by DMFs (through contributions from miners) are specifically intended to implement projects and programs that benefit the local communities living in mining-affected areas. This includes initiatives related to health, education, water supply, sanitation, skill development, environmental protection, and livelihood restoration.
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Authorizing State Governments to issue licences for mineral exploration: The power to issue licenses for mineral exploration and mining rests with the State Governments, as per the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, and its subsequent amendments. District Mineral Foundations are welfare bodies, not regulatory or licensing authorities. They do not have the power to authorize or issue mining licenses.
Conclusion on DMF Purposes
Based on the analysis of each statement, only the second statement accurately describes a primary purpose of District Mineral Foundations. Their focus is squarely on mitigating the adverse impacts of mining and promoting the well-being of affected communities.
Therefore, the correct purpose of District Mineral Foundations among the given options is protecting the interests of the persons affected by mining operations.
| Statement | Purpose | Correctness for DMF | Reasoning |
|---|---|---|---|
| 1 | Promoting mineral exploration | Incorrect | DMFs are welfare trusts for affected people, not exploration bodies. |
| 2 | Protecting interests of affected persons | Correct | This is the primary and statutory objective of DMFs. |
| 3 | Authorizing state licenses | Incorrect | Licensing is a state government's regulatory function, not DMF's. |
Revision Table: District Mineral Foundation Purposes
| Stated Purpose | Is it a Purpose of DMF? |
|---|---|
| Promoting mineral exploration | No |
| Protecting interests of affected persons | Yes |
| Authorizing state licenses | No |
Additional Information on District Mineral Foundations
District Mineral Foundations are non-profit trusts in India established in every district affected by mining. They are funded by contributions from mining leaseholders. The rate of contribution is specified in the MMDR Act, 2015:
- For mining leases granted after the commencement of the MMDR Amendment Act, 2015, the contribution is 10% of the royalty.
- For mining leases granted before the commencement of the MMDR Amendment Act, 2015, the contribution is 30% of the royalty.
The funds collected by the DMFs are utilized for implementing the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), a scheme launched by the Government of India. PMKKKY guidelines focus on high-priority areas and other priority areas. High-priority areas include:
- Drinking water supply
- Environmental preservation and pollution control
- Healthcare
- Education
- Sanitation
- Skill development
- Women and child welfare
- Welfare of aged and disabled persons
- Physical infrastructure (roads, bridges, etc.)
- Livelihood restoration
The state government makes rules for the functioning of the DMFs, including the composition of the trust, the rules for utilizing the funds, and the specific areas to be covered.
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Select the correct answer using the code given below.
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