Q62 (IAS/2016) Economy › Economy Current Affairs › Energy and mineral policy Official Key

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.

Result

Your answer: — · Correct: B

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

How others answered

Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.

Community Performance

Out of everyone who attempted this question.

78%

got it right

Web / Current Affairs

Online pages / news items supporting the statement

Web source

Presence: 5/5

"The National Mineral Exploration Trust (NMET) ... with the objective to boost the regional and detailed mineral exploration activities."

Why this source?

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.

Web source

Presence: 4/5

"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."

Why this source?

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.

Web source

Presence: 4/5

"Section 9(B) of the MMDR Act defines DMFs as non-profit organizations, outlines their objectives, and grants state governments the authority to determine the"

Why this source?

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.

Indirect textbook clues (5)

How books hint at the answer

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 6: Environmental Issues > Guidelines for Sustainable Sand & Minor Mineral Mining > p. 115

Strength: 4/5

“• Where to mine and where to prohibit mining: District Survey Report for each district in the country, taking the river in that district as one ecological system. Use of ISRO, remote sensing data and ground truthing. z. Sustainable mining: Mining out material only that much which is deposited annually. 3. Involvement of District authorities in the process: The District-level Environment Impact Assessment Authority (DEIAA) headed by District Collector. The District Collector is to be assisted by the District Level Expert Appraisal Committee (DEAC) headed by Executive Engineer (Irrigation Department), being assigned the responsibility of granting environment clearance up to 5 hectare of mine lease area for minor minerals, mainly sand.”

Why relevant

Describes explicit involvement of district authorities (DEIAA headed by District Collector) in mining approvals and sustainable mining decisions at district level.

How to extend

A student could infer that district-level institutions already have mandates related to mining management and therefore check whether DMFs—also district-focused—include exploration or capacity-building in their stated purposes.

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

Strength: 4/5

“Introduction: In the federal structure of India, the "Regulation of mines and mineral development" falls under the Union List. Accordingly, the Central Government frames rules and regulation regarding the development and extraction of minerals but it has entrusted the respective state governments with mining related activities except in case of Coal, Petroleum & Natural gas and atomic minerals. The State Governments are the owners of minerals located within the boundary of the State concerned and have the authority to collect "taxes/ royalty" on mineral rights. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.”

Why relevant

Explains the federal allocation of 'regulation of mines and mineral development' and that State Governments own minerals within state boundaries and handle mining activities.

How to extend

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.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Natural Resources of India > p. 31

Strength: 4/5

“not very efficient, leading to bottlenecks, scarcity, and higher cost of transportation. • 4. Inadequate Exploration and Prospecting of Minerals: In the absence of trained geologists, there are many areas in Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharshtra, Rajasthan, and Uttarakhand which have not been properly surveyed to explore the minerals.• 5. Inadequacy of Funds: In the absence of inadequate funds, the infrastructure could not be developed in the areas of isolation and relative isolation where many of the most valuable minerals are found.• 6. Lack of Awareness about Conservation: There is very little awareness about the exhaustible nature of the minerals and their conservation.• 7.”

Why relevant

Identifies 'inadequate exploration and prospecting of minerals' and 'inadequacy of funds' as recognised problems in various districts/states.

How to extend

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.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > MINERAL AND ENERGY RESOURCES > p. 53

Strength: 3/5

“India is endowed with a rich variety of mineral resources due to its varied geological structure. Bulk of the valuable minerals are products of pre-palaezoic age (Refer: Chapter 2 of Class XI, Textbook: "Fundamentals of Physical Geography" and are mainly associated with metamorphic and igneous rocks of the peninsular India. The vast alluvial plain tract of north India is devoid of minerals of economic use. The mineral resources provide the country with the necessary base for industrial development. In this chapter, we shall discuss the availability of various types of mineral and energy resources in the country. A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties.”

Why relevant

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.

How to extend

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.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Distribution of Minerals > p. 1

Strength: 3/5

“The mineral wealth of India is largely confined to the igneous and metamorphic rocks of Peninsular India, while the Great Plains of India and the Himalayan region are almost devoid of the metallic minerals. The states which are rich in the metallic and non-metallic minerals are Jharkhand, Chhattisgarh, Odisha, Bihar, West Bengal, Madhya Pradesh, Karnataka, Kerala, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Uttarakhand, Andhra Pradesh, Tripura, and Assam. The states of Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir, and Gangetic West Bengal are, however, poor in mineral resources.”

Why relevant

Lists states and regions that are mineral-rich, implying identifiable 'mineral-rich districts' where district-level interventions would be relevant.

How to extend

A student could map DMF presence/activities against these mineral-rich districts to see if DMFs undertake exploration-promotion in those areas.

The Supreme Court of India on July 29, 2011 directed the suspension of all mining operations and transportation in Bellary district of Karnataka till further orders. In this respect, which of the following statements is/are correct ? 1. The Court was convinced that over-exploration of the area bad caused large-scale environ- mental degradation. 2. The Court felt that Article 21 of the Constitution (Right to life) was violated by such exploration. 3. The Court directed the Central Government to prepare rehabilitation scheme for restoration of the forest wealth. Select the correct answer using the code given below :

With what purpose is the Government of India promoting the concept of “Mega Food Parks”? 1. To provide good infrastructure facilities for the food processing industry. 2. To increase the processing of perishable items and reduce wastage. 3. To provide emerging and eco-friendly food processing technologies to entrepreneurs. Select the correct answer using the codes given below :

What is the purpose of 'Vidyanjali Yojana' ? 1. To enable the famous foreign educational institutions to open their campuses in India. 2. To increase the quality of education provided in government schools by taking help from the private sector and the community. 3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools. Select the correct answer using the code given below :

With reference to the management of minor minerals in India, consider the following statements : 1. Sand is a 'minor mineral' according to the prevailing law in the country. 2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government. 3. State Governments have the power to frame rules to prevent illegal mining of minor minerals. Which of the statements given above is/are correct?

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