Pradhan Mantri Khanij Kshetra Kalyan Yojana Focuses on Safeguarding Health, Environment and Economic Conditions of the Tribals


Provides Them with Opportunities to Benefit from the Vast Mineral Resources

Nearly Rs. 6000 Crore Would Be Utilized For the Implementation of PMKKKY in Mining Areas of Different States
 The Prime Minister Shri Narendra Modi had highlighted the under-development of mining areas as an issue of “Grave Concern”, in his Independence Day address on 15th August, 2015.

He had said “Look at the life of people there. They sweat to make our country rich but that region is not developed and, therefore, we have formulated a special scheme for the development of the labourers and farmers of the regions from where minerals are extracted and around Rs.6000 crores will be spent every year on the regions which fall in the areas of my tribal brothers, located in my tribal areas”.

Following up on this announcement of the Prime Minister, the Central Government has launched the Pradhan Mantri Khanij Kshetra Kalyan Yonaja (PMKKKY).

            This is the new programme meant to provide for the welfare of areas and people affected by mining related operations. The most productive mining areas in the country are largely areas inhabited by scheduled tribes. They also are mainly located in the areas covered by the Fifth Schedule of the Constitution. The PMKKKY is, therefore, very sharply focused on safeguarding the health, environment and economic conditions of the tribals and providing them with opportunities to benefit from the vast mineral resources that are extracted from the areas where they live.

The objective of PMKKKY scheme will be (a) to implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

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.  The Central Government has notified the rates of contribution payable by miners to the DMFs.  In case of all mining leases executed before 12th January, 2015 (the date of coming into force of the Amendment Act) 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.

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

The Guidelines provide for:-

(a)   Identification of affected areas and people to be covered under the


(i)        All areas directly affected by mining related operations as well as those areas indirectly affected by such operations will be covered under PMKKKY.

(ii)      Directly affected areas are those areas where direct mining related operations such as excavation, mining, blasting, beneficiation and waste disposal take place.

(iii)    Indirectly affected areas are those where negative impacts of mining in the form of deterioration of water, soil and air quality, reduction in stream flows and depletion of ground water, congestion and pollution due to mining operations etc. happen.

(iv)    Affected persons are to include “affected family”, “displaced family”, both as defined under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Any other family as identified by the concerned gramsabha could also be included.

(v)      The Guidelines also provide that people affected by mining will include not only those who have legal rights over the land being mined, but also those who have occupational rights, usufruct and other traditional rights.

(vi)    The Guidelines have been framed in a very exhaustive manner so as to rule out the scope of any affected person being left out due to ambiguity or inadequacy in the guidelines.

(b)   Utilization of Funds

At least 60% of the funds under the PMKKKY have to be used for high priority areas such as drinking water supply, environment preservation and pollution control measures, primary / secondary health care, education, welfare of women, children, aged and disabled people, skill development & sanitation. Up to 40% of the funds can be used for infrastructure projects such as physical infrastructure, irrigation, energy and watershed development and any other measures for enhancing environmental quality in mining district.

The DMFs have also been directed to take all major decision in a participatory mode, in consultation with the ‘gram sabhas’ of the respective villages.  They are expected to maintain the utmost transparency in their functioning and provide periodic reports on the various projects and schemes taken up by them.

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