8-Dec-2021: Allocation of Funds to Pradhan Mantri Khanij Kshetra Kalyan Yojana

Fund is allocated from the District Mineral Fund (DMF) to various projects to be taken up through Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY).

Ministry of Mines has circulated guidelines for Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY) on 16.09.2015 to be implemented by the District Mineral Foundations (DMF) for taking up development and welfare projects/programs in mining affected areas and other directions from time to time. As per the guidelines, the DMFs have been instructed to spend majority of funds on the areas directly affected by mining i.e. areas where direct mining-related operations such as excavation, mining, blasting, beneficiation and waste disposal (overburdened dumps, tailing ponds, transport corridors etc.), etc. are located and a percentage of the funds on indirectly affected areas where local population gets affected on account of economic, social and environmental consequences due to mining-related operations.

Ministry of Mines issued PMKKKY guidelines vide Order dated 16.09.2015 which states that “The developmental and welfare activities to be taken up under the PMKKKY should be, as far as possible, in the nature of complementing the ongoing schemes/projects being funded by the State as well Central Government. However, without prejudice to the powers of the Foundation, efforts shall be made to achieve convergence with the State and the District Plans so that the activities taken up by the Foundation supplement the development and welfare activities and are treated as extra budgetary resources for the State Plan.”

The contribution to DMF is not related to utilization of DMF funds. Also, in exercise of the powers conferred by sub-sections (5) and (6) of Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, the holder of a mining lease or a prospecting licence-cum-mining lease, in addition to the royalty, shall pay amount as prescribed under Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 to the District Mineral Foundation.

26-Jul-2021: Implementation of Pradhan Mantri Khanij Kshetra Kalyan Yojana

As per the Information available with Ministry of Mines, District Mineral Foundations (DMFs) have been constituted in 600 districts in 22 States. All these States have incorporated PMKKKY guidelines into their DMF Rules. The overall objective of PMKKKY scheme will be (a) to implement various developmental and welfare projects/programs in mining affected areas, and these projects/programs will be complementing the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

The Mines and Minerals (Development and Regulation) Amendment Act, 2021which came into effect on 28.03.2021 further empowers the Central Government to issue directions to the State Governments with respect to composition and functions of DMF. Accordingly Central Government issued order on 23.04.2021 to all the States to include MPs, MLAs and MLCs in the Governing Council in the larger public interest. Moreover, Ministry of Mines issued order dated 12.7.2021 to ensure that the fund available in DMF shall not be transferred/spent to any fund or purposes other than as prescribed under MMDR Act.

4-Mar-2019: Chhattisgarh govt revises District Mineral Foundation Trust composition

The new Congress-led government in Chhattisgarh has revised the composition of the governing council of District Mineral Foundation Trusts (DMFTs), and placed the minister in-charge of the respective districts at the head of the governing bodies.  

Earlier, these were headed by the District Collector (DC). The change has been brought about by introducing amendments to the Chhattisgarh District Mineral Foundation Trust Rules (2015), through a notification dated February 26, 2019.

The move follows the Chhattisgarh government’s observation that DMFTs have not been functioning optimally to benefit mining-affected people and the worst affected areas. The decision has been taken to improve participation of people through the representatives selected by them. This is to ensure that the needs of mining-affected areas are reflected well. The effort is to ensure that DMFs work in an accountable manner.

In a recent collectors' conference held with Chief Minister Bhupesh Baghel, clear instructions were given by him to all DCs to focus on the directly-affected areas and stop sanctioning works in non-DMF and urban areas. The general opinion of the government was to increase people’s representation in the governing council in order to stop these irregularities.

Background: A DMF is a non-profit trust instituted under the Mines and Minerals (Development and Regulation) Amendment Act, 2015 to “work for the interest and benefit of persons, and areas affected by mining”. DMFTs which have been set up in various mining districts, including all districts of Chhattisgarh, have a two-tier administrative structure, a Governing Council (GC) and a Managing Committee (MC) with differential responsibilities. The idea of a two-tier structure was to have appropriate checks and balances in decision-making. However, the DMFT body as developed under most state rules, including in Chhattisgarh, provide little scope for balanced decision-making.

Both the GC and the MC were being headed by the DC. The other members of these bodies predominantly comprise officials and elected representatives. There is practically no representation of mining-affected people in the body to have their voice and representation in decision-making. In order to have a more balanced structure, the Chhattisgarh government has now removed the DC as chairperson of the GC. Also, all members of legislative assembly (MLA) of the concerned mining district have been made GC members.

Composition of DMFT Governing Council in Chhattisgarh 

18-Jan-2019: 1st National Level workshop on DMF/ PMKKKY on 18.01.2019 held in New Delhi

Ministry of Mines organized the 1st National level workshop on District Mineral Foundation (DMF)/ Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) on 18.01.2019 in New Delhi. District Collectors/District Magistrate/ CEOs/ Zila Parishad, officials from State Mining departments, senior officials of other central ministries including Health, Women and Child dev., Rural Development and others participated. The main objective of the workshop was to discuss various issues to expedite implementation of DMF and developing strategies to address the challenges in DMF implementation, audit and reconciliation, improving PMKKKY guidelines, criteria for identification of affected people and areas, etc.

2. Hon’ble Union minister of Mines Shri Narendra Singh Tomar in his address highlighted the notable turnaround in the mining affected areas after implementation of DMF/PMKKKY. He emphasized that the districts should have target based projects and should focus on timely deliveries and also increase the percentage share of fund utilization for bringing significant relief to mining affected regions and people. With the accrual of Rs 23,606 crores, DMF has ushered a positive perception about mining industry. Estimated accrual of more than 2.5 lakh crore in next 25 years in DMF and its optimum utilisation in implementation of PMKKKY has the potential of changing the landscape of area affected by mining and also change in the life of people affected by mining. This workshop is an attempt to showcase the developmental works that are being carried out in the districts and also brainstorm on the challenges incurred by districts in implementation of projects under PMKKKY, learning from success stories for districts for replication.

3. During the workshop, book titled ‘Transform Mining’ was also released by Hon’ble Union Mines Minister showcasing the developmental projects implemented in the districts and the funds utilized thereunder. It also showcases the best practices of DMF utilization in mining affected districts.

4. There were two technical sessions in the workshop to discuss various issues faced by the districts in the implementation of PMKKKY. In the first technical session, District Collectors from 10 districts presented the best practices adopted in their district for implementation of projects under PMKKKY. Also, Ministry of Health, Woman and Child development and Rural development made presentations highlighting ways of converging their schemes with DMF schemes. In the second technical session, participants from state mining departments, DMs/ CEOs / Zila parishad from districts were divided in groups to share their experience and discuss on various issues such improving PMKKKY guidelines, auditing and fund management, etc. The team leaders made presentation on the outcome of the discussions. Discussions held during both sessions were highly appreciated.

5. The workshop on DMF/ PMKKKY, first of its kind, will go a long way in strengthening the efforts of the Ministry in enabling the mining sector to contribute its fullest to foster socio- economic development of mining affected areas and also contribute in the growth of national economy. These efforts will help the central government to further improve policy environment to promote best practices across all regions.

23-Nov-2017: Centre asks states to step-up spending under District Mineral Fund.

The Prime Minister reviewed the progress in implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). He said that funds accruing to the District Mineral Foundations (DMFs) should be utilized to strategically focus upon and eliminate major development issues or deficits that these districts currently face. He said this should be done in a focused way, so as to achieve the greatest possible, tangible results by 2022, which marks 75 years of independence.

The programme is meant to provide for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs).

The scheme aims to'

1. implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.
2. minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
3. ensure long-term sustainable livelihoods for the affected people in mining areas.

High priority areas 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 will get at least 60 % share of the funds. For creating a supportive and conducive living environment, balance funds will be spent on making roads, bridges, railways, waterways projects, irrigation and alternative energy sources.

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. In case of all mining leases executed before 12th January, 2015 (the date of coming into force of the Amendment Act) miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs. Where mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable.