Pradhan Mantri Khanij Kshetra Kalyan Yojana and District Mineral Foundation: a mixed bag opportunity

On September 16, 2015, the Central Government launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The scheme has been noted by the Ministry of Mines as “a revolutionary and unprecedented scheme of its kind, which will transform the lives of people living in areas which are affected directly or indirectly by mining”.

The PMKKKY has been allied to the District Mineral Foundations (DMF), to facilitate the implementation of the scheme. The DMF was instituted by introducing amendments to the Mines and Minerals (Development and Regulation) Act (MMDR), 1957, earlier this March, to “work for the interest and benefit of persons, and areas affected by mining-related operations”. For the DMF to serve its objective, a certain amount of money has to be paid by mine lease-holders to the DMF. The PMKKKY will be implemented by the DMFs of various mining district, by using the funds accrued to them.

On September 17, just the next day, the Centre also notified the amounts that mine lease-holders of major minerals, such as coal, iron ore, bauxite etc., are required to pay to the DMF. The amounts were notified through the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015. The Rules require mining lease-holders, or prospecting license-cum-mining lease-holders, to pay ten per cent of the royalty for leases granted on or after January 12, 2015; and thirty per cent of the royalty for leases granted before January 12, 2015.

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