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 codes given below:

The correct answer is B) 2 only. District Mineral Foundations (DMFs) were created by the Mines and Minerals (Development and Regulation) Amendment Act, 2015, through Section 9B. Each mining-affected district has a non-profit DMF trust, funded by mining lease holders through a share of their royalty. Its job is to work for the welfare of people and areas affected by mining, such as drinking water, health, education, livelihood and environmental protection, under the DMF Rules, 2015.

• Statement 1 is wrong. DMF money is not meant for exploration. Exploration is a function of the Centre and the State and of companies like NMDC and GSI, and the DMF is a welfare fund, not an exploration agency.
• Statement 2 is correct. Protecting and improving the interests of mining-affected persons is the core purpose of the DMF.
• Statement 3 is wrong. Mineral concessions are granted by State Governments under the MMDR Act and the rules, and the DMF has no licensing role at all.

On the Mains side, this sits in the debate on resource curse, tribal rights and sharing mining benefits with local communities, and the DMF is a key example of how that benefit-sharing is institutionalised.

Trap: candidates see "mineral-rich districts" and assume the fund is for exploration, or they assume that anything linked to mining must involve licensing. Keep the DMF's purpose tied to welfare of affected persons.