Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

Source: PIB
GS III: Mineral Resources, Environmental Protection, Sustainable Development

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Why in the News?

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is in focus for its role in ensuring that communities and regions affected by mining benefit from mineral extraction.

News in Brief

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• PMKKKY was launched on 17 September 2015 and is implemented through District Mineral Foundations using funds collected under the DMF framework.
• DMFs are non-profit trusts established under the 2015 amendment to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) to work for people and areas affected by mining.
• DMFs have been established in 656 districts across 23 States, with each State framing its own DMF rules.
• As of July 2026, more than 4.70 lakh projects worth ₹1.09 lakh crore had been sanctioned, with over 2.92 lakh projects completed.

What is PMKKKY?

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• The Pradhan Mantri Khanij Kshetra Kalyan Yojana is a welfare-oriented framework designed to ensure that mining-affected areas receive developmental benefits from mineral extraction.
• Mining can generate revenue, employment and industrial activity, but mining districts may also face displacement, environmental degradation and pollution, health-related impacts, loss of traditional livelihoods and inadequate social and physical infrastructure.
• PMKKKY seeks to address these consequences by directing DMF resources towards the welfare and development of affected communities.
• Objectives– The scheme aims to
  • Implement developmental and welfare projects in mining-affected areas.
  • Minimize the adverse environmental, health and socio-economic effects of mining.
  • Address impacts that continue both during mining and after mining ends.
  • Promote long-term and sustainable livelihoods for affected populations.

District Mineral Foundation (DMF)

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• The District Mineral Foundation is the institutional mechanism through which PMKKKY is implemented.
  • DMF provisions were introduced through the 2015 amendment to the MMDR Act, 1957.
  • DMFs are non-profit trusts.
  • They work in the interests of persons and areas affected by mining-related operations.
  • Their functioning comes under the jurisdiction of the concerned State Government.
  • DMF funds are collected at the district level.
  • Each State has framed its own DMF rules.
• Mining companies contribute a prescribed share of royalty to the District Mineral Foundation (DMF), which uses these funds to implement PMKKKY welfare and development projects in mining-affected areas, benefiting local communities through better infrastructure, livelihoods and basic services.
• Mining lease holders pay royalty on minerals extracted.
• In addition to royalty, contributions are made to DMFs.

Utilization of PMKKKY Funds

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• The scheme divides expenditure into High-Priority Sectors and Other Priority Sectors.
• High-Priority Sectors – At least 70%
  • Funds are directed towards,
    • Drinking water supply
    • Environment preservation and pollution control
    • Healthcare and education
    • Welfare of women, children, elderly persons and persons with disabilities
    • Skill development and livelihood generation
      Sanitation and housing
    • Agriculture and animal husbandry
• Other Priority Sectors – Up to 30%
  • These include:
    • Physical infrastructure
    • Irrigation
    • Energy
    • Watershed development
    • Other measures aimed at improving environmental quality in mining districts.
• The 70:30 allocation reflects an emphasis on basic human development and livelihood security, while also allowing resources for infrastructure and environmental improvement.

Safeguards foe Scheduled and Tribal Areas

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• Mining activities often occur in remote and relatively less-developed regions where vulnerable communities, particularly Scheduled Tribes, may be significantly affected.
• Therefore, State governments are required to frame DMF rules while taking into account:
  • Constitutional provisions relating to Scheduled and Tribal Areas;
  • Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA); and
  • Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA).
• This connects mining governance with tribal rights, decentralisation and community participation.

Significance for India

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• PMKKKY attempts to ensure that the economic benefits of mineral extraction reach communities that experience its local costs.
• It provides resources for pollution control and environmental improvement in mining districts.
• Its safeguards connect mining governance with constitutional provisions and laws protecting Scheduled Tribes and forest-dwelling communities.
• Spending on drinking water, health, education, sanitation and housing can improve basic living conditions in mining-affected regions.
• Skill development, agriculture, animal husbandry and livelihood-generation projects can reduce excessive dependence on mining.
• The scheme attempts to balance mineral extraction and economic growth with environmental protection and local welfare.

Challenges

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• Ensuring that benefits actually reach the most affected households;
• Effective identification of mining-affected areas and communities;
• Avoiding duplication with existing Central and State schemes;
• Ensuring transparency and accountability in DMF expenditure;
  meaningful participation of local communities;
• Balancing infrastructure creation with long-term livelihood generation; and
• Ensuring that environmental restoration accompanies mineral extraction.

Conclusion

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PMKKKY seeks to ensure that the benefits of mineral development reach the communities that bear its social and environmental costs. By directing DMF funds towards basic services, livelihoods, infrastructure and environmental protection, the scheme aims to make mining-led growth more inclusive, sustainable and community-oriented.

UPSC Prelims Practice Question

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Consider the following statements regarding the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):

1. PMKKKY is implemented through District Mineral Foundations in mining-affected areas.
2. At least 70% of PMKKKY funds are earmarked for high-priority sectors such as drinking water, healthcare, education and livelihood generation.
3. DMF contributions are fixed at 10% of royalty for all mining leases irrespective of the date of the lease.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

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