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Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

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Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is a programme launched on 17 September 2015 to provide for the welfare of areas and people affected by mining related operations. PMKKKY is implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF from miners. (Khanij means Mineral and Kshetra means area or field in Hindi. Kalyan stands for welfare and Yojana stands for a Plan or project)

District Mineral Foundation (DMF) is a trust set up under Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015 as a non-profit body in those districts affected by the mining works to work for the interest and benefit of persons and areas affected by mining related operations, in such manner as prescribed by the relevant State Government.


Mining related operations largely affect less developed and very remote areas of the country, and vulnerable sections of the population, especially Scheduled Tribes. Therefore, it is especially 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. It is with this objective that DMF and PMKKKY were launched by the Government. The overall objectives of PMKKKY scheme are:


The Central Government has issued a directive on 16 September 2015 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.


Coverage of PMKKY 
All areas directly affected by mining related operations as well as those areas indirectly affected by such operations are covered under PMKKKY.


Affected persons are to include “affected family” and “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 Gram Sabha could also be included.

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.

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.


Utilization of Funds

At least 60% of the funds under the PMKKKY has 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.

Not more than 5% of the funds can be used for administrative expenses. Save for the base minimum contractual posts, creation of posts, purchase of vehicles etc. would require prior permission.

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 utmost transparency in their functioning and provide periodic reports on the various projects and schemes taken up by them.

Efforts are made to achieve convergence with the State and the District Plans so that the activities taken up by the DMF supplement/complement the development and welfare activities already being carried out. However, activities meant to be taken up under the ‘polluter pays principle’ cannot be taken up under the PMKKKY.

As on 10 October 2016, DMF has been set up in 263 districts across 12 mineral rich states and an amount of Rs. 3589 crores has been collected.

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