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Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) launched by Government of India

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The Central Government announced the launch of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) aimed to provide basic amenities and for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs).

(Minister of mines and steel – Shri Narendra Singh Tomar)

  • On January 12, 2015 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.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) launched by Government of India

Objective of Scheme

  • To implement various developmental and welfare projects/programs in mining affected areas
  • To minimize the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts
  • To ensure long-term sustainable livelihoods for the affected people in mining areas.


Government notified the rates of contribution payable by miners to the DMF as follows:

  • Mining leases executed before 12th January, 2015 miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs.
  • Mining leases are granted after 12th January, 2015 the rate of contribution would be 10% of the royalty payable.
  • The DMFs in all districts will use this additional income for implementation of Pradhan Mantri Khanij Kshetra Kalyan Yojana.

Utilisation of Funds

Under the PMKKKY, the government has put special emphasis on several aspects of what can be defined as a healthy lifestyle.

  • In High priority areas at least 60% of PMKKKY funds to be utilized like drinking water supply, health care, sanitation, education, skill development, women and child care, welfare of aged and disabled people, skill development and environment conservation.
  • For other priority Areas up to 40% of the PMKKKY to be utilized like on making roads, bridges, railways, waterways projects, irrigation and alternative energy sources.


  • The Central Government has issued guidelines to the State Governments, under Section 20A of the MMDR Act, 1957, for implementation of PMKKKY and directing the States to incorporate the same rules framed by them for the DMFs.
  • Centre Government directed the DMFs to maintain the utmost transparency in their functioning and provide periodic reports on the various projects and schemes taken up by them.