PMKKKY – UPSC GS3

 Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
This 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).
Objectives of the scheme:
  • to implement various developmental and welfare projects/programs in mining affected areas that complement 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
  • to ensure long-term sustainable livelihoods for the affected people in mining areas
Areas of focus:
  • High priority areas like drinking water supply, health care, sanitation, education, skill development, women and child care, welfare of aged and disabled people, 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.
About 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.
  • 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.
States like Maharashtra, Orissa, Chhattisgarh, Jharkhand and Karnataka have launched exercise for the establishment of District Mineral Foundation Trust (DMFT). Critically examine the role and significance of DMFT. (200 Words)
MMDR Act 2015 had provisions for formation of District Mineral Foundation in every district affected by mining for providing relief to the project-affected people and areas in the district
  1. Funding pattern – Centre notified that part of the royalty paid by miner to state government to be utilised for this purpose, this move mandates the state government to allocate money for the project affected people
  2. Capacity building – Most people who lose land are farmers who needs alternative livelihoods in spite of the fact that they receive compensation for the land. The funds under DMFT will be used for conducting skill development programs and capacity building for taking up self-employment
  3. Infrastructure development – Emphasis has been laid on creation of infrastructure or maintenance and development of existing infrastructure this is very critical as it impacts directly the socioeconomic status of any area
On flipside certain limitations which needs to be looked at like
  1. Representation – The guidelines of central government doesn’t contain the provision for mining affected people to be represented in the DMFT which is against the decentralised approach
  2. Coordination – There are already certain programs run by various departments, DMFT’s objectives overlap with them. So a convergence needs to be arrived at
  3. Environment impact – Mining causes huge environmental impacts, though it is a very critical aspect there are no specific guidelines by centre to combat this through the DMFT
DMFT if successful would provide path for such policies to be extended for all the project affected people in various sectors