Pradhan Mantri Khanij Kshetra Kalyan Yojana

Mining is the second largest employer in India. Most of India’s minerals are located in forest areas inhabited by tribal, backward and deprived population. 

As the present goverment made necessary amendements to Mines and Minerals Development and Regulation (MMDR) act 2015 the new Act addressed two root issues underlying the mining sector: 

a) Reinvigorating the mining industry by bringing in transparency and laying greater emphasis on exploration 

b) Distributing the fruits of prosperity achieved through mining to affected people for stable mining atmosphere

The Scheme In September 2015, the Ministry of Mines has issued Guidelines for using the funds accruing to DMF. Called as the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), this scheme will be binding on State Governments.

 Encompassing all facets of development, social and economic, immediate and long-term, the Pradhan Mantri Khanij Kshetra Kalyan Yojana rests on three main objectives: 

1. To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government 

2. To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and 

3. To ensure long-term sustainable livelihoods for the affected people in mining areas. The objective has been spelled out clearly so that the end goal remains prominent in its clarity: causing substantial improvement in the quality of life. 

Highlights of the Scheme 

Here are some pertinent facts concerning the scheme, which may come in handy for administrators, legislators and citizens concerned: 

> The Scheme is applicable with effect from January 12, 2015 

>Mining leases executed before 12th January, 2015 will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs 

> Mining leases granted after 12th January, 2015 through auction will contribute an amount equivalent to 10% of the royalty payable 

> The total fund generated under this scheme is expected to be around Rs 6,000 crore per annum