Question map
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.
Explanation
The correct answer is option B (2 only). Section 9B of MMDR Act empowers State Governments to establish District Mineral Foundation (DMF) to work for welfare and benefit of persons, and areas affected by mining related operations[1]. The introduction of District Mineral Foundations (DMFs) marks a groundbreaking and unprecedented initiative aimed at transforming the lives of people in areas directly and indirectly affected by mining[2]. Statement 1 is incorrect because promoting mineral exploration is the purpose of the National Mineral Exploration Trust (NMET), not DMF. The National Mineral Exploration Trust (NMET) has the objective to boost the regional and detailed mineral exploration activities[3]. Statement 3 is incorrect as issuing licenses for mineral exploration is a regulatory function of the government under the MMDR Act, not a purpose of DMF. Therefore, only statement 2 correctly identifies the purpose of District Mineral Foundations.
Sources- [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/dec/doc20241227477501.pdf
- [2] https://mines.gov.in/admin/download/68711f55163581752244053.pdf
- [3] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/dec/doc20241227477501.pdf
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Functional Swap' trap. The 2015 MMDR Amendment created TWO bodies: the National Mineral Exploration Trust (NMET) for exploration and the District Mineral Foundation (DMF) for welfare. The examiner took the function of NMET (Statement 1) and attributed it to DMF. Always map sibling institutions side-by-side.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Is promoting mineral exploration activities in mineral-rich districts a purpose of District Mineral Foundations in India?
- Statement 2: Is protecting the interests of persons affected by mining operations a purpose of District Mineral Foundations in India?
- Statement 3: Is authorizing State Governments to issue licences for mineral exploration a purpose of District Mineral Foundations in India?
- Explicitly states the National Mineral Exploration Trust (NMET) was established with the objective to boost regional and detailed mineral exploration activities.
- Indicates exploration responsibility is assigned to NMET rather than to DMFs.
- Describes District Mineral Foundations (DMFs) as an initiative aimed at transforming the lives of people in areas affected by mining.
- Emphasizes inclusive growth and sustainable development (social/welfare focus), not mineral exploration.
- Notes Section 9(B) of the MMDR Act defines DMFs as non-profit organizations and outlines their objectives.
- Implied focus is governance and development objectives defined by law, with no mention here of promoting exploration.
Describes explicit involvement of district authorities (DEIAA headed by District Collector) in mining approvals and sustainable mining decisions at district level.
A student could infer that district-level institutions already have mandates related to mining management and therefore check whether DMFsβalso district-focusedβinclude exploration or capacity-building in their stated purposes.
Explains the federal allocation of 'regulation of mines and mineral development' and that State Governments own minerals within state boundaries and handle mining activities.
Using this rule, a student could reason that DMFs (district bodies) would operate within state/central legal frameworks, so they might be tasked with local development/exploration only if allowed by MMDR/related rules.
Identifies 'inadequate exploration and prospecting of minerals' and 'inadequacy of funds' as recognised problems in various districts/states.
A student could infer that bodies funded for local mining-affected areas (like DMFs) might reasonably be expected to support exploration or fund surveys to remedy these gaps, and so would look for DMF provisions that address exploration or capacity/fund usage.
Defines minerals as a base for industrial development and notes their uneven geographic distribution, highlighting the developmental importance of mineral resources at local/district level.
A student could use this pattern to argue that district-level foundations aiming to benefit mining-affected communities might include promotion of mineral-related activities (including exploration) to spur local development, then verify DMF mandate text.
Lists states and regions that are mineral-rich, implying identifiable 'mineral-rich districts' where district-level interventions would be relevant.
A student could map DMF presence/activities against these mineral-rich districts to see if DMFs undertake exploration-promotion in those areas.
- Explicitly states PMKKKY 'shall help the people affected by mining.'
- States the District Mineral Foundation (DMF) under PMKKKY has collected funds 'to be used for the welfare of the workers involved in mining.'
- Directly ties DMF to welfare/protection of persons impacted by mining operations.
- Notes the Mines and Minerals (Development & Regulation) Act provides for creation of District Mineral Foundations in mining districts.
- Establishes statutory/institutional basis for DMFs, which supports interpreting their role as addressing mining-related impacts.
- Explicitly cites Section 9B of the MMDR Act empowering State Governments to establish DMFs to work for welfare and benefit of persons and areas affected by mining.
- Describes DMF purpose as welfare/benefit and funding from statutory contributions, not licensing or authorizing exploration licences.
- States that Section 9(B) of the MMDR Act defines DMFs as non-profit organizations and outlines their objectives.
- Indicates state governments determine DMF composition and functions β framing DMF roles, which are welfare-focused rather than granting exploration licences.
States are instructed to create District Mineral Foundations (DMFs) in districts where mining takes place, indicating DMFs are district-level instruments related to mining governance.
A student could combine this with the specific statutory purposes of DMFs (welfare/mitigation) to judge whether licensing/exploration authorization fits a DMF's purpose or is a separate state function.
DMF funds (under PMKKKY) are described as being used for welfare of people affected by mining, pointing to a remedial/welfare role rather than regulatory/licensing functions.
Use this to infer that DMFs are oriented to welfare/rehabilitation, so licensing powers (regulatory) are less likely to be a DMF purpose and more likely with state/central agencies.
The federal division: 'Regulation of mines and mineral development' is on the Union List, but states are owners of minerals within state boundaries and entrusted with mining-related activities (except certain minerals).
Combine this federal/state allocation with the DMF creation note to assess whether licensing (a regulatory/administrative act) would be a state government duty separate from DMF's welfare role.
District-level authorities (DEIAA/DEAC headed by District Collector) are assigned environmental clearances for small mine leases, showing district bodies have specific procedural roles in mining approvals.
A student could contrast these explicit district approval roles with DMF functions to determine if licensing is already allocated to district/state administrative bodies rather than DMFs.
- [THE VERDICT]: Trap (Functional Swap). Standard books (Vivek Singh/Majid Husain) cover the welfare aspect, but the trap lies in confusing it with NMET.
- [THE CONCEPTUAL TRIGGER]: The MMDR Amendment Act, 2015. When a major Act is amended, list every new institution created and its specific mandate.
- [THE HORIZONTAL EXPANSION]: 1. NMET (National Mineral Exploration Trust) = 2% of royalty, focus on exploration. 2. DMF (District Mineral Foundation) = 10-30% of royalty, focus on welfare. 3. PMKKKY (Pradhan Mantri Khanij Kshetra Kalyan Yojana) = Guidelines for DMF usage. 4. Fund Split = 60% High Priority (Health, Water, Education) vs 40% Other Priority (Roads).
- [THE STRATEGIC METACOGNITION]: Apply the 'Nature of Body' filter. A 'Foundation' at a 'District' level is usually a trust for local benefit/welfare. It is unlikely to handle high-tech, capital-intensive tasks like 'Mineral Exploration' (which is a technical/geological task) or 'Licensing' (which is a sovereign/regulatory task).
Reference [4] describes the District-level Environment Impact Assessment Authority and District Collector's involvement in granting environment clearance for minor minerals at the district level.
High-yield for UPSC because questions often ask about decentralised environmental governance and local administrative roles; connects to topics on environmental regulation, decentralisation, and implementation. Enables answering questions on which activities are handled at district level versus state/centre. Prepare by memorising institutional responsibilities and recent policy changes; practice by mapping functions to administrative tiers.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 6: Environmental Issues > Guidelines for Sustainable Sand & Minor Mineral Mining > p. 115
Reference [5] explains that regulation of mines is a Union subject while states are entrusted with mining activities and own minerals within state boundaries (with certain exceptions).
Crucial for constitutional and governance questions on federal distribution of powers and resource governance; helps in evaluating which level of government can create bodies or assign functions like exploration promotion. Study the Union, State, and Concurrent lists, and relate to real-world statutes (e.g., MMDR Act); practise by contrasting powers and duties in past question formats.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
Reference [7] highlights inadequate exploration and prospecting in several states and districts, noting gaps in trained geologists and surveys.
Useful for questions on mineral resource management, development challenges, and policy responses; links to topics like economic geography, resource-based development, and institutional capacity. Helps frame answers on why targeted exploration/policy interventions are needed. Prepare by noting examples of under-explored regions and policy tools (surveys, funding, training).
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Natural Resources of India > p. 31
References describe DMF under PMKKKY collecting funds to be used for welfare of workers and helping people affected by mining.
DMF is frequently referenced in questions on mining governance, environmental justice and welfare schemes; mastering its welfare mandate helps answer questions on scheme objectives, fund usage, and mining-affected communities. Study official scheme summaries and related MMDR Act provisions to link institutional design with outcomes.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 9
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
PMKKKY is the central scheme under which DMFs operate to assist persons affected by mining, per the references.
Central schemes tied to resource governance are high-yield for UPSC (GS Paper II/III and ethics casework). Understand scheme aims, implementing bodies, and fund channels; relate to broader topics like corporate social responsibility and district-level welfare planning.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 9
One reference notes the MMDR Act provides for creation of DMFs in districts with mining, anchoring their legal existence.
Knowing the legal/constitutional backing for institutions is vital for governance questions. This concept links mining regulation, federal roles, and district-level implementation; revise relevant Act provisions and how they translate into local welfare mechanisms.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
References state that the MMDR Act provides for creation of DMFs by state governments in districts where mining takes place and that DMF funds are used for welfare of mining-affected people.
DMFs are frequently asked in questions on mining governance, resource rehabilitation and welfare schemes. Mastering DMF basics helps answer questions on institutional responses to mining impacts, fund utilisation, and linked schemes (e.g., PMKKKY). Prepare by studying the statutory origin (MMDR Act), stated purposes, and examples of fund usage.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Governmental Initiatives > p. 9
The '60:40 Rule' of PMKKKY. 60% of DMF funds must be used for 'High Priority' areas (Drinking water, Environment preservation, Health, Education, Welfare of women/children), while 40% is for 'Other Priority' (Physical infrastructure, Irrigation, Energy). Expect a question asking which sector falls under 'High Priority'.
Use the 'Hierarchy Logic'. Look at Statement 3: 'Authorizing State Governments to issue licences'. A 'District' level foundation is a subordinate entity. It cannot 'authorize' a 'State Government' (a superior constitutional authority). Power flows down, not up. This logical impossibility eliminates Statement 3 immediately.
Connects to GS-2 (Social Justice & Decentralization) and GS-3 (Inclusive Growth). DMF is a practical application of the 'Benefit Sharing' principle to cure the 'Resource Curse' (where mineral-rich areas remain poor). It also links to PESA Act: In Scheduled Areas, the Gram Sabha must certify DMF utilization.