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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.
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3



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The purpose of 'District Mineral Foundations' (DMFs) in India is primarily to protect the interests of the persons affected by mining operations. They are established in mineral-rich districts and are funded through the contributions made by mining companies as a percentage of their royalty payments. The funds accumulated in DMFs are utilized for the welfare and development of affected persons and areas, including initiatives for healthcare, education, infrastructure, and livelihood restoration. Therefore, statement 2 is correct.

However, statement 1 is not entirely accurate. While DMFs indirectly contribute to promoting mineral exploration activities by addressing the welfare of affected persons and creating a conducive environment, their primary objective is not to directly promote mineral exploration.

Statement 3 is also incorrect. DMFs do not have the authority to issue licenses for mineral exploration. The authority to issue licenses for mineral exploration rests with the respective State Governments or designated authorities.


How was this explanation?

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