Pradhan Mantri Khanij Kshetra Kalyan Yojana

Pradhan Mantri Khanij Kshetra Kalyan Yojana

News: The article discusses the Pradhan Mantri Khanij Kshetra Kalyan Yojana.


Objectives of the scheme: most productive mining areas in the country are largely areas inhabited by scheduled tribes hence the scheme is focused on:

  • To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.
  • To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
  • To ensure long-term sustainable livelihoods for the affected people in mining areas.

Features of the scheme:

  • The scheme is implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF.
The Mines and Minerals (Development & Regulation) Amendment Act, 2015, mandated the setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations.
In case of all mining leases executed before 12th January, 2015 miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs. Where mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable.


Affected areas:

  • Directly affected areas – where direct mining-related operations such as excavation, mining, blasting, beneficiation and waste disposal (overburdened dumps, tailing ponds, transport corridors etc.), etc. are located.
  • Indirectly affected areas – Those areas where local population is adversely affected on account of economic, social and environmental consequences due to mining-related operations like deterioration of water, soil and air quality, reduction in stream flows and depletion of ground water etc.
  • Affected people:
  • The scheme lists people who are effected directly and indirectly by mining operations and  DMF shall prepare and maintain an updated list of such affected persons/local communities.
  • Utilisation of Funds: The scheme mandates that:
  • At least 60% of PMKKKY funds to be utilized under drinking water supply, environment preservation and pollution control measures, health care, education, welfare of women and children, skill development and sanitation.
  • Up to 40% of the PMKKKY to be utilized under Physical infrastructure, Irrigation, Energy and Watershed Development and ther measures for enhancing environmental quality in mining district.

Of the total amount collected under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) only 24% has been actually spent, hence there is a need for states to increase the spending under the District Mining Fund (DMF) programme, while ensuring that there is no fund diversion or leakage.

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