Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) — Objectives and Applications

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) — Objectives and Applications

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) was launched on 17 September 2015 to transform the living standards of those people who stay in the mining areas and their lives are involved in mining using the funds generated by District Mineral Foundations (DMFs). PMKKKY is a revolutionary and unprecedented scheme of its kind, which will transform the lives of people living in areas which are affected directly or indirectly by mining.

The PMKKY is an innovative scheme aimed to increase the living standards of miners and also provide them a healthy environment by using funds provided by the government. This is a very difficult occupation and was continuously ignored until this scheme came up in 2015 with highly planned aims and objectives.

The setting up of District Mineral Foundations (DMFs)was consented by The Mines and Minerals Amendment Act, 2015 in all districts in the country affected by mining-related operations. The Central Government notified the rates of contribution payable by miners to the DMFs. The Pradhan Mantri Khanij Kshetra Kalyan Yojana is focused on safeguarding the health, environment and economic conditions of the tribals and providing them with chances to benefit from the vast mineral resources that are extracted from the areas where they live.


This scheme is a follow-up to Prime Minister’s promise of Rs. Six Thousand Crore for the development of tribals in mining-affected areas in his Independence Day speech. However, the proposal to establish the District Mineral Foundations had come in November 2014 from Union Government side. For the purpose of using funds on the welfare of the people/infra development in mining affected areas, on January 12, 2015, President Pranab Mukherjee had signed an ordinance to amend the Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957. This was followed by parliamentary approval to the amendment of MMDR Acr 1957 on 26 March 2015.

PMKKKY Guidelines and Objectives

Mining related operations affect less urbanized and very remote areas of the country, and vulnerable sections of the population, especially Scheduled Tribes. Therefore, it is necessary that special care and attention is devoted, in an organized and structured manner so as to ensure that these areas and affected persons are benefitted by the mineral wealth in their regions and are empowered to improve their standard of living. The overall objectives of PMKKKY scheme are:

· Implement various developmental and welfare projects/programs in mining affected areas. These projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government

· 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.

Care has been taken to include all aspects of living, to ensure substantial improvement in the quality of life. Important fields like drinking water supply, health care, sanitation, education, skill development, women and child care, the welfare of aged and disabled people, skill development and environment conservation will get at least 60 % share of the funds.

What is the MMDR Amendment Act?

The UPA government had drafted the MMDR (Amendment Act) 2011 which lapsed due to its non-introduction in Lok Sabha. The January 2015 Ordinance subsequent March 2015 amendment of MMDR act was in the continuance of that bill. This amendment makes provisions for the establishment of District Mineral Foundations and also a National Mineral Exploration Trust.

District Mineral Foundation (DMF)

1. The money in this scheme would come in the form of District Mineral Foundations (DMFs).

2. The parliament had enacted the Mines and Minerals (Development & Regulation) Amendment Act, 2015, which came into force on 12 January 2015 which amendment mandated the establishment of District Mineral Foundations (DMFs) in all mining districts of the country.

3. The rate of contribution by the miners is 30% of the royalty in case of leases granted after 12th January 2015, 10% of the royalty.

4. These funds will be used by the DMFs for implementation of the scheme which includes: Various developmental and welfare projects, Mitigation of health, environment and socio-economical impacts of mining Ensure long-term sustainable livelihoods for affected people.

5. The highest priority has been given to drinking water supply, healthcare, sanitation, education, skill development, women & child care, the welfare of the aged and disabled people, environment and skill development.

6. The DMFs will be established by the State Governments as per guidelines issued by Central Government. This foundation will be headed by District Magistrate or District Collector.


· The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF.

· In the case of all mining rents executed before 12th January, miners had 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.

· Using the funds generated by this contribution, the DMFs are expected to implement the PMKKKY. By these rates of contribution, it’s expected that with current level of royalty collection in the country, nearly Rs.6000 crore would be utilized for the implementation of PMKKKY in mining areas of different States.

· The Central Government issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957 providing guidelines for implementation of PMKKKY and directing the States to incorporate the same in the rules framed by them for the DMFs.

Affected Areas

Directly Affected

Where direct mining-related operations such as excavation, mining, blasting, beneficiation and waste disposal etc. are performed.

Indirectly Affected Areas

Those areas where the local population is adversely affected on account of economic, social and environmental consequences due to mining-related operations.

Affected People

· ‘Affected family’ as defined in Section 3 © of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

· ‘Displaced family’ as defined in Section 3 (k) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

· Any other as appropriately identified by the concerned gram sabha.

· People affected by mining should include people who have legal and occupational rights over the land being mined, and also those with usufruct and traditional rights

· Affected families should be identified, as far as possible, in consultation with local/elected representatives of gram sabha.

· The DMF shall prepare and maintain an updated list of such affected persons/local communities.


High priority areas — at least 60% of PMKKKY funds to be utilized under these heads:
 • Drinking water supply
 • Environment preservation and pollution control measures
 • Healthcare
 • Education
 • Welfare of Women and Children
 • Skill development
 • Sanitation
 • Other priority Areas
 • Up to 40% of the PMKKKY funds to be utilized under these heads
 • Physical infrastructure
 • Irrigation
 • Energy and Watershed Development


The establishment of DMFs has come as a very late response of the state to the citizens of India’s ore-rich areas, who have borne the cost of mining in the form of health, environment, livelihood and sanitation challenges. Thus there is no certainty on how much money will come in, and no clarity on how and where it will be used. Without any such clarity, the DMFs will fall prey to corruption and scandalous operations. Further, this body is to be dominated by the government officials, who have powers to prepare plans and budgets, sanction funds and use the funds. Still, there’s a strong hope for the scheme to rise with every coming year and finally achieve the objectives it was meant to.

Contact Details for PMKKKY

Pradhan Mantri Khanij Kshetra Kalyan Yojana — PMKKKY Website — Ministry of Mines, India