Pradhan Mantri Khanij Kshetra Kalyan Yojana

Section 9B of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 provides for establishment of District Mineral Foundation(DMF) in each district affected by mining related operation.

The DMF is to be funded by statutory contributions from holders of mining lease. Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) will be implemented through fund collected under DMFs for welfare and development of mining affected areas and people.

Directions in this regard have been issued under section 20A of MMDR Act on 16.09.2015 to all the States Governments to incorporate the PMKKKY into the rules framed by them for the DMF.

The Ministry of Mines has notified the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015, on 17.9.2015, which prescribes the rate of contribution to DMF as follows:

I. 10% of royalty in respect of mining leases granted on or after 12.1.2015; and

II. 30% of royalty in respect of mining leases granted before 12.1.2015.

Out of 12 mineral rich states of the country, 11 States [i.e. Goa, Karnataka, Chhattisgarh, Odisha, Jharkhand, Madhya Pradesh, Rajasthan, Telangana, Andhra Pradesh, Gujarat and Maharashtra] have framed DMF rules and DMF has been set up in 263 districts as per details given.

Power related to sanctioning of fund; preparation of annual action plan and utilization of fund under DMF for the development of the areas affected by mining related operations have been delegated to DMF trust established by State Government by the name of respective district, a non-profit body, with an objective to work for the interest and benefit of persons, and areas affected by mining related operations. Details in this regard are not maintained centrally.

S.No State Total Number of districts in which DMF has been set up Whether rules for DMF notified Date of setting up of DMF  for Major Minerals
1 Goa 2 Yes 15.01.2016
2 Karnataka 30 Yes 11.01.2016
3 Chhattisgarh 27 Yes 02.01.2016
4 Odisha 30 Yes 18.08.2015
5 Madhya Pradesh 51 Yes 15.05.2015
6 Jharkhand 24 Yes 22.03.2016
7 Rajasthan 33 Yes 31.05.2016
8 Telangana 10 Yes 21.06.2016
9 Andhra Pradesh 13 Yes 14.03.2016
10 Gujarat 32 Yes 01.04.2016
11 Maharashtra 11 Yes 01.09.2016
12 Tamilnadu 0 No —–
Total   263