In News:

During the latest 23^rd interaction through PRAGATI, the Prime Minister reviewed the progress in implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

Background:

In 2015, the Union government announced the launch of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

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

Objective of PMKKKY scheme include:

• 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;
• To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and
• To ensure long-term sustainable livelihoods for the affected people in mining areas.

Implementation

• The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) will be implemented by the District Mineral Foundations (DMFs) of the respective districts using the funds accruing to the DMF.

Utilisation of Funds

High priority areas – at least 60% of PMKKKY funds to be utilized under following heads:

• Drinking water supply
• Environment preservation and pollution control measures
• Health care
• Education
• Welfare of Women and Children
• Skill development
• Sanitation

Other priority Areas – Up to 40% of the PMKKKY to be utilized under following heads:

• Physical infrastructure like roads, bridges, railways etc.
• Irrigation
• Energy and Watershed Development
• Any other measures for enhancing environmental quality in mining district.

What are the District Mineral Foundations (DMFs)?

• 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.
• The Central Government has notified the rates of contribution payable by miners to the DMFs.
• 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^th January 2015, the rate of contribution would be 10% of the royalty payable.

Source: PIB & Vikaspedia