The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) has completed 11 years since its launch on 17 September 2015 by the Ministry of Mines. As on July 2026, the scheme has sanctioned 4,70,020 projects worth Rs 1,09,938 crore through District Mineral Foundations in 656 districts across 23 states. The milestone shows how a share of mining royalty is now directly funding drinking water, health, education and livelihoods in mining affected areas.
What Is the PMKKKY Scheme?
The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is a central welfare programme that uses a share of mining income for the development of mining affected villages and towns. The Ministry of Mines launched the scheme on 17 September 2015 and directs state governments to implement it through District Mineral Foundations (DMFs). In simple words, money earned from minerals found under the land is spent on the people living on that land.
The full name of the scheme explains its purpose clearly. Khanij means mineral in English, Kshetra means area or field, and Kalyan means welfare. So the complete English meaning is Prime Minister Mineral Area Welfare Scheme. The name captures the core idea that those who bear the cost of mining in the form of dust, displacement and loss of farms must also share its gains.
The Ministry of Mines has fixed three clear objectives for PMKKKY. First, the scheme must carry out development and welfare works in mining affected areas that add to existing central and state schemes. Second, it must reduce the damage caused by mining during operations and after mines close, especially to the environment, health and incomes of local families. Third, it must create long term and sustainable livelihoods so that affected people do not remain dependent on mining alone.
Legal Framework Under the Mines and Minerals Act
The Mines and Minerals (Development and Regulation) Act, 1957, usually called the MMDR Act, is the main law that controls mining of major minerals in India. The 2015 amendment to this law, which came into effect from 12 January 2015, created a new Section 9B for District Mineral Foundations. Section 9B says that every state government must set up a non profit trust called the District Mineral Foundation in each district affected by mining operations.
The same 2015 amendment also changed the system of giving mining leases. It replaced the earlier first come first served method with transparent auction through competitive bidding. It also created the National Mineral Exploration Trust under Section 9C for detailed mineral exploration. Together, these changes linked mining reform with local welfare for the first time.
PMKKKY itself is not a separate fund. The central government framed PMKKKY guidelines in September 2015 and used powers under Section 20A of the MMDR Act to direct states to include the scheme in their DMF rules. The MMDR Amendment Act, 2021 later gave the central government clear power to issue directions on the composition of DMFs and the use of their money. This legal backing prevents diversion of funds and keeps control at the district level.
Nodal Ministry and Implementation Through District Mineral Foundation
The Ministry of Mines is the nodal ministry for PMKKKY. The Ministry frames the guidelines, runs the National DMF Portal at dmfindia.mines.gov.in, and monitors performance with state governments. State geology and mining departments act as the state level nodal point, while the actual planning and spending happen at the district level.
District Mineral Foundation (DMF) in mining means a district level non profit trust that works only for the interest and benefit of persons and areas affected by mining related operations. Each DMF is governed by a Governing Council headed by the District Collector, with members that include elected representatives such as Members of Parliament, Members of Legislative Assembly and Members of Legislative Council. The Governing Council approves projects and expenditure, and no sanction can be given at the state level.
The Ministry of Mines reports that DMFs have been set up in 656 districts across 23 states (as of September 2026). Each state has framed its own DMF rules within the national framework. The rules also give special protection to Scheduled Areas. While making rules, states must follow Article 244 read with the Fifth and Sixth Schedules of the Constitution, along with the Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Forest Rights Act, 2006. This matters because many mining districts in Odisha, Jharkhand and Chhattisgarh have large tribal populations.
How Is the DMF Fund Collected and Used?
The DMF fund is the money collected at the district level from mining lease holders in addition to royalty. Royalty is the payment a mining company makes to the government for the mineral it extracts. A part of this royalty flows into the local DMF trust instead of going only to the general government account.
The Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 fix the contribution rates. Holders of mining leases granted on or after 12 January 2015 pay an amount equal to 10 percent of royalty to the DMF. Holders of leases granted before 12 January 2015 pay an amount equal to 30 percent of royalty. The payment is made in the same cycle as royalty payment, with interest for delay.
PMKKKY divides spending into two clear baskets under the Revised PMKKKY Guidelines 2024, issued on 15 January 2024. The earlier 2015 guidelines had prescribed a 60 to 40 split, which the 2024 revision changed to a 70 to 30 split to give more weight to basic needs. At least 70 percent of PMKKKY money must go to high priority sectors, while up to 30 percent can go to other priority sectors. At least 70 percent of total DMF money must also be spent only in directly affected areas, which are villages within about 15 km of mines, while indirectly affected areas extend to about 25 km.
| Fund Use | Share | Sectors Covered |
|---|---|---|
| High priority sectors | At least 70 percent | Drinking water supply, environment preservation and pollution control, health care, education, welfare of women and children, welfare of aged and differently abled persons, skill development and livelihood generation, sanitation, housing, agriculture and animal husbandry |
| Other priority sectors | Up to 30 percent | Physical infrastructure such as roads and bridges, irrigation, energy and watershed development, and any other work that improves environmental quality in the mining district |
The guidelines also set aside up to 5 percent of annual receipts for administrative and monitoring costs, and require districts with annual collection of ₹10 crore or more to keep an endowment fund of up to 10 percent for future livelihoods after mines close.
Portal, Monitoring and Revised Guidelines 2024
The DMF Portal, also called the PMKKKY portal or National DMF Portal, is the central online system for sanction, fund release and tracking of all DMF projects. The Ministry of Mines developed the portal to provide a live dashboard, project oversight tools and a collection of best practices from districts. Each DMF must update project data, keep its website section current, and move approvals and payments through the online system once notified by the central government.
The Revised PMKKKY Guidelines 2024 added strong checks for accountability. Every district must prepare a five year Perspective Plan based on a baseline survey by academic institutions or reputed agencies, with inputs from Gram Sabha bodies, and split it into yearly action plans. Accounts must be audited, with provision for audit by the Comptroller and Auditor General of India (CAG), which was established in 1860 and derives authority from Article 148 of the Constitution. Districts must also publish annual reports on time.
The guidelines ban any transfer of DMF money to the state exchequer, state level fund, Chief Minister Relief Fund or any other scheme. A State Level Monitoring Committee headed by the Chief Secretary reviews DMF performance at least twice a year. A three level grievance system at district, state and central levels handles complaints on fund misuse or delays. If a DMF fails to maintain its endowment fund, transfers money wrongly, skips audit or ignores transparency rules, the central framework allows suspension of fund release and corrective inquiry.
Eleven Year Milestone: Scale, State Performance and Significance
The Ministry of Mines marked 11 years of PMKKKY on 17 September 2026 with updated national figures up to July 2026. The Ministry reported that 4,70,020 projects with a sanctioned value of ₹1,09,938 crore have been approved under the DMF PMKKKY framework. Out of these, 2,92,156 projects worth ₹49,973 crore stand completed, while 78,809 works are under execution with committed funds of ₹30,512 crore. The growth is sharp when compared with November 2024, when about 3.60 lakh projects had been sanctioned, which shows faster ground execution in the last two years.
| Project Status as on July 2026 | Number of Projects | Amount |
|---|---|---|
| Sanctioned | 4,70,020 | ₹1,09,938 crore |
| Completed | 2,92,156 | ₹49,973 crore |
| Ongoing | 78,809 | ₹30,512 crore committed |
State performance remains highly concentrated in mineral rich states. Odisha leads by a wide margin, with collections crossing ₹31,324 crore, more than double that of Chhattisgarh. Keonjhar in Odisha alone has collected over ₹13,154 crore, the highest for any district in India, followed by Sundargarh and Angul. Chhattisgarh, Jharkhand, Rajasthan and Madhya Pradesh form the next tier, with major mining hubs such as Korba, Dhanbad, Singrauli and Bellary driving collections.
The significance lies in the link between geography and welfare. Mining districts in Odisha, Jharkhand and Chhattisgarh are among the poorest regions in India, with high poverty and poor health and education indicators. PMKKKY directs local mineral wealth into piped water, treatment plants to control air and water pollution from dumps and drainage, primary health centres with staff and equipment, school buildings with hostels and e learning support, and training for alternative jobs. By insisting on convergence with existing schemes and priority for Aspirational Districts and Blocks, the scheme tries to ensure that DMF money adds to government budgets instead of replacing them.
The Way Forward
The Ministry of Mines has asked all states to fully include the Revised PMKKKY Guidelines 2024 in their DMF rules. Eight states, including Odisha, Jharkhand, Maharashtra and Rajasthan, have already done so, while others are in process. Full adoption, regular updating of data on the National DMF Portal, timely audits and five year plans based on village level surveys will decide whether the financial scale of over ₹1 lakh crore turns into lasting gains in water security, health, learning and dignified incomes for mining affected families.
Key Takeaways
- The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) was launched on 17 September 2015 by the Ministry of Mines and is implemented through District Mineral Foundations.
- Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, added by the 2015 amendment effective from 12 January 2015, provides for DMFs as non profit trusts.
- Mining lease holders pay 10 percent of royalty for leases granted on or after 12 January 2015 and 30 percent of royalty for older leases into the DMF fund.
- Under the Revised PMKKKY Guidelines 2024, at least 70 percent of funds must go to high priority sectors and up to 30 percent to other priority sectors.
- As on July 2026, 4,70,020 projects worth ₹1,09,938 crore were sanctioned, of which 2,92,156 projects are completed, across 656 districts in 23 states.
- Odisha leads DMF collections with over ₹31,324 crore, and Keonjhar district alone has collected over ₹13,154 crore, the highest in India.
