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.
Answer & explanation
Answer: (b) 2 only
A District Mineral Foundation (DMF) is a non-profit trust in a mining-affected district that works for the interest and benefit of the people and areas affected by mining, funded by contributions from miners. It does not promote exploration or license anyone, so only statement 2 is correct.
- ✗ 1. Detailed exploration is the job of a different body, the National Mineral Exploration Trust, created by the same 2015 law and funded by a 2% levy on royalty.
- ✓ 2. The DMF's object is to work for the interest and benefit of persons and areas affected by mining related operations; miners pay into it, up to one-third of the royalty.
- ✗ 3. A DMF is a welfare trust financed by miners' contributions; it is not a body that authorises States to issue licences.
Remember · DMF (MMDR Amendment Act, 2015): a non-profit trust in each mining-affected district; miners contribute up to one-third of royalty; funds PMKKKY. Exploration is NMET's job (2% of royalty).
Sources
- Indian Economic Service (Arthapedia): District Mineral Foundation (DMF) ↗ “District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. … It is funded through the contributions from miners. … a provision was made also to create a National Mineral Exploration Trust under the jurisdiction of central government, with 2% of royalty as levy, for boosting detailed exploration of minerals”
Question and answer: UPSC's official GS Paper I (2016, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·