Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

Context: Over the past decade, nearly ₹1-lakh crore has been collected through the DMFs, but more than 50% of this amount remains unspent.

About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

• Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) was launched in 2015 by the Central Government to improve the living conditions of people in mining-affected regions.
• It is implemented through the (District Mineral Foundation) DMF funds, ensuring that mining revenue directly benefits affected communities.

Objectives of PMKKKY

• Improve health, education, and skill development in mining areas.
• Provide better drinking water, sanitation, and welfare measures for women and children.
• Improve housing and electrification in affected districts.
• Focus on land restoration, reforestation, and pollution control.
• Implement measures to mitigate environmental damage caused by mining.

Fund Allocation Guidelines Under PMKKKY

The government mandates a balanced allocation of DMF funds:

• 60% of funds: For high-priority areas such as healthcare, education, skill development, and sanitation.
• 40% of funds: For other projects like physical infrastructure, irrigation, and environmental protection.

Challenges & Issues in DMF Fund Utilization

• Bureaucratic Inefficiencies & Delayed Implementation: Many districts lack a proper mechanism to identify the most pressing needs of mining-affected communities.
• Diversion of Funds to Non-Priority Areas: Funds are diverted to infrastructure projects that do not directly benefit mining-affected people, instead of focusing on skill development, healthcare and livelihood etc.
• Lack of Transparency & Public Participation: Limited public oversight on fund allocation, leading to misuse and mismanagement.
• Underutilization of Funds for Livelihood & Skill Development: More focus on short-term infrastructure projects has overshadowed long-term economic development initiatives.

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