Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

About

  • Launched on 17 September 2015 to ensure mining-affected communities benefit from mineral extraction.
  • Implemented through District Mineral Foundations (DMFs), which utilise funds collected from mining lease holders.

Objectives

  • Improve quality of life in mining-affected areas by developing social infrastructure.
  • Reduce adverse impacts of mining on environment, health and livelihoods.
  • Promote sustainable income opportunities for affected communities.

District Mineral Foundation (DMF)

  • Non-profit trusts established under the 2015 amendment to the Mines and Minerals (Development and Regulation) Act, 1957.
  • Function under State Governments; established in 656 districts across 23 States.

Legal Framework

  • The MMDR Act, 1957 requires States to incorporate PMKKKY provisions into their DMF rules.
  • Revised PMKKKY guidelines (January 2024) provide an updated framework for planning and implementing DMF-funded projects.
  • DMF rules must consider constitutional safeguards for Scheduled Areas and Scheduled Tribes, along with the PESA Act, 1996 and the Forest Rights Act, 2006.

Funding Mechanism

  • Contributions from mining lease holders:
  • 10% of royalty for leases/prospecting licence-cum-mining leases granted on or after 12 January 2015.
  • 30% of royalty for leases granted before 12 January 2015.

Fund Utilisation

  • At least 70% for high-priority sectors: drinking water, healthcare, education, environmental protection, sanitation, housing, skill development, livelihood generation, agriculture and animal husbandry.
  • Up to 30% for other priority sectors: infrastructure, irrigation, energy and watershed development.

Progress (as of July 2026)

  • Over 4.70 lakh projects worth more than ₹1 lakh crore sanctioned.
  • More than 2.92 lakh projects completed; 78,809 projects under implementation.

Significance

  • Converts mineral wealth into inclusive and sustainable mining-led development.
  • Ensures communities bearing the social and environmental costs of mining share its economic benefits.
  • Strengthens tribal welfare through constitutional safeguards in Scheduled Areas.

PYQ (2016)

Purpose of District Mineral Foundations: Protecting the interests of persons affected by mining operations (Answer: 2 only).