UPSC Prelims 2016 · Question 87 of 98

UPSC Prelims 2016 question on District Mineral Foundations

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 licenses for mineral exploration

Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer

Answer: B. 2 only

Verdict

The answer is 2 only. District Mineral Foundations protect the interests of those affected by mining, but they neither promote exploration nor authorise licensing.

Analysis

Statement 2 is CORRECT. A District Mineral Foundation is a non profit trust set up in districts affected by mining, funded by contributions from miners, to work for the interest and benefit of persons and areas affected by mining operations. Statement 1 is INCORRECT. Promoting mineral exploration is not its purpose, and exploration promotion belongs to a separate national exploration trust. Statement 3 is INCORRECT. State governments derive licensing powers from the mining statute itself, not from a district level trust.

Source

Business Line report on the notification of miners' contributions to district mineral foundations.

How to crack it

Read the institutional form, since a Foundation funded by a levy on an industry and operating at district level is a compensation and welfare vehicle, and such bodies do not hold regulatory or licensing powers. Regulatory authority sits with governments, not trusts, so statement 3 fails on form alone. Keep the pair distinct: the District Mineral Foundation compensates affected areas while the exploration trust funds prospecting, since the Act created both together.

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