Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

GS II-SCHEMES

Why is it in the News?

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) does not receive direct financial allocations from either the Central or State Governments. Instead, the projects under this scheme are financed through funds accumulated under the District Mineral Foundation Trust (DMF).

According to Section 9B of the Mines and Minerals (Development & Regulation) Act, 1957 (MMDR Act), every district impacted by mining operations is required to establish a District Mineral Foundation (DMF). The foundation’s role is to promote the well-being of individuals and communities affected by mining activities, following the guidelines set by respective State Governments.

Funding for DMF comes from statutory contributions made by mining leaseholders, calculated as a percentage of royalty as prescribed by the Central Government.

About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

PMKKKY is a welfare initiative designed to support regions and communities impacted by mining operations.

A significant proportion of India’s most mineral-rich areas are home to Scheduled Tribes, and many of these locations fall under the Fifth Schedule of the Constitution. Given this, PMKKKY focuses on improving health, environmental conditions, and economic opportunities for tribal populations, ensuring they benefit from the mineral resources extracted from their lands.

Objectives of PMKKKY

1. Development and Welfare Projects: Implement developmental initiatives in mining-affected regions to complement existing State and Central Government schemes.
2. Environmental and Socio-Economic Protection: Minimize the negative effects of mining on the environment, health, and livelihoods of affected communities.
3. Sustainable Livelihoods: Ensure long-term, stable economic opportunities for people living in mining regions.

Implementation of PMKKKY

• The scheme is executed through District Mineral Foundations (DMFs) in each mining-affected district, utilizing funds collected under DMF.
• The Mines and Minerals (Development & Regulation) Amendment Act, 2015, mandated the formation of DMFs in every mining-affected district.
• The Central Government has set contribution rates for miners:
  • For mining leases granted before January 12, 2015 – 30% of the royalty payable.
  • For mining leases granted after January 12, 2015 – 10% of the royalty payable.

Fund Utilization Guidelines

• At least 60% of PMKKKY funds must be allocated to high-priority sectors, including:
  • Drinking water supply
  • Healthcare
  • Education
  • Environmental protection
• Up to 40% can be used for other priority sectors, such as:
  • Physical infrastructure
  • Irrigation
  • Energy
  • Watershed development

Using these resources, DMFs are responsible for implementing PMKKKY at the district level.

To ensure proper execution, the Central Government has issued directives to State Governments under Section 20A of the MMDR Act, 1957, outlining implementation guidelines and requiring states to integrate them into their DMF regulations.