Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

The Central Government has announced the launch of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The aim of the scheme is to provide for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs). 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.

Pradhan Mantri Khanij Kshetra Kalyan Yojana

Objectives of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

The objective of PMKKKY scheme is:

  • 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.

Scope of PMKKKY

The utilization of funds is divided into two areas:

  1. High priority areas – at least 60% of PMKKKY funds to be utilized under these heads:
    • Drinking water supply
    • Environment preservation and pollution control measures
    • Health care
    • Education
    • Welfare of Women and Children
    • Welfare of aged and disabled people
    • Skill development
    • Sanitation
  2. Other priority Areas – Up to 40% of the PMKKKY to be utilized under these heads:
    • Physical infrastructure
    • Irrigation
    • Energy and Watershed Development
    • Any other measures for enhancing environmental quality in mining district

Implementing Agency

The scheme will be implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF

What is District Mineral Foundation

The Mines and Minerals (Development & Regulation) Amendment Act, 2015 provides for establishment of District Mineral Foundation (DMF) in any district affected by mining related operation. The objective of the DMF is to work for the interest and benefit of persons, and areas affected by mining related operations.

The Ministry of Mines has prescribes the rate of contribution to DMF as follows:

  • 10% of royalty in respect of mining leases granted on or after 12.1.2015
  • 30% of royalty in respect of mining leases granted before 12.1.2015

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