Question

Regarding District Mineral Foundations (DMFs), consider the following statements:

1. District Mineral Foundations (DMFs) are statutory bodies established in all the districts in the country affected by mining.
2. DMF funds are collected at state level but used at district level.
3. These funds cannot be used for any purpose other than for the welfare of areas and people affected by mining related operations.

Which of the above statement(s) is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer 1

Option A - 1 Only

■ Explanation :-

• Statement 2 is incorrect :- The DMF fund is collected at district level.

• Statement 3 is incorrect :- DMF funds can be used for other purposes if the central Government directs as has been done recently.

More Information

■ District Mineral Foundation Fund :-

• Union Finance Minister recently said state governments should use district mineral foundation (DMF) funds for response and preparedness to fight the novel coronavirus disease (COVID-19) pandemic.

• DMF funds may be used to supplement and augment healthcare facilities, screening and testing requirements and any other resources that might be required.

• District Mineral Foundations (DMFs) were instituted under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015 in all districts in the country affected by mining related operations.

• They are non-profit trusts to work for the interest and benefit of persons and areas affected by mining-related operations.

• The fund is collected at the district level. There are certain high-priority areas identified in all states’ DMF rules, where at least 60 per cent of the fund must be used. These include vital and pressing concerns, including healthcare, drinking water, women and child welfare, education sanitation etc.

_________

Answer 2

Regarding District Mineral Foundations (DMFs), consider the following statements:

1. District Mineral Foundations (DMFs) are statutory bodies established in all the districts in the country affected by mining.

2. DMF funds are collected at state level but used at district level.

3. These funds cannot be used for any purpose other than for the welfare of areas and people affected by mining related operations.

Which of the above statement(s) is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3