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Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) scheme

By Amigos IAS

Why is it in the news?

  • As per the revised guidelines, 70% of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) funds are now allocated to high priority sectors, and 30% to other priority sectors, marking a shift from the previous ratio of 60% and 40%.
About the PMKKKY

·       Launched in 2015 under the Mines and Minerals (Development and Regulation) Act, 1957, by the Central government.

·       Administered by the Ministry of Mines, the scheme aims to ensure the proper utilization of funds generated from mining activities for the development and welfare of communities affected by mining.

·       District Mineral Foundations (DMFs) are non-profit trusts established under the MMDR Act by state governments in all mining-affected districts. Mining companies are mandated to contribute a portion of their royalty, ranging from 10% to 30%, depending on the date of the mining lease, to DMFs. This contribution is in addition to royalties paid to state governments.

Key objectives:

·       Implement various welfare programs and development projects in mining-affected areas to improve the quality of life for affected communities.

·       Minimize adverse impacts of mining activities on local populations and the environment through targeted interventions.


·       Directly affected individuals include those classified as ‘Affected families’ and ‘Displaced families’ under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013.

·       Other individuals or areas identified by the concerned gram sabha as directly or indirectly affected by mining activities.

High Priority Sectors:

·       Ensuring access to clean and safe drinking water for communities affected by mining activities.

·       Implementing measures to mitigate environmental degradation caused by mining operations and reducing pollution levels.

·       Providing healthcare facilities and services to improve the health outcomes of affected populations.

·       Enhancing educational opportunities and infrastructure to promote literacy and skill development among mining-affected communities.

·       Implementing programs and initiatives to uplift the socio-economic status of women and children in mining-affected areas.

·       Providing support and assistance to elderly and differently-abled individuals in mining-affected communities.

Other Priority Sectors:

·       Constructing and upgrading infrastructure such as roads, bridges, and public buildings to facilitate development in mining-affected regions.

·       Undertaking irrigation initiatives to enhance agricultural productivity and livelihood opportunities for local communities.

·       Promoting renewable energy projects and access to clean energy sources in mining-affected areas.

·       Implementing measures to conserve water resources and improve soil fertility in mining-affected regions.

·       Introducing measures aimed at enhancing environmental quality and mitigating the impact of mining activities on ecosystems and biodiversity in affected districts.

Other Features:

·       Special provisions are included for scheduled areas to address specific needs and challenges faced by tribal communities residing in these regions.

·       Mandates yearly audits of DMF accounts to ensure transparency, accountability, and efficient utilization of funds allocated under the PMKKKY scheme.

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