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UPSC Prelims 2016 Q62: Indian Economy – Infrastructure & Industry

UPSC Prelims 2016, General Studies Paper I · Indian Economy

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.
  1. (a) 1 and 2 only
  2. (b) 2 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3

Answer: (b) 2 only

Explanation

District Mineral Foundations (DMFs)

Set up under Section 9B of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

A DMF is a non-profit trust in every district affected by mining.

StatementVerdictFact
1. Promoting mineral exploration activities in mineral-rich districtsIncorrectExploration is funded by the National Mineral Exploration Trust
2. Protecting the interests of the persons affected by mining operationsCorrectThis is the sole purpose of a DMF
3. Authorizing State Governments to issue licences for mineral explorationIncorrectLicensing is a power under the Act, not a function of DMFs

How a DMF works:

FeatureDetail
Funded byMiners: 30 percent of royalty (old leases) or 10 percent (auctioned leases)
Spent throughPradhan Mantri Khanij Kshetra Kalyan Yojana
Priority areasDrinking water, health, education, environment

Answer: (b) 2 only.

Why each option is right or wrong

Key point

DMF (Section 9B, MMDR Amendment Act 2015): district trust funded by miners' royalty share for the welfare of mining-affected people; spent via PMKKKY.

Remember

DMF = welfare of mining-affected people.

Common mistakes

Exam tip

DMF = district welfare. NMET = national exploration. Both came from the 2015 amendment.

Sources

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