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A PIB Backgrounder reviews the Pradhan Mantri Khanij Kshetra Kalyan Yojana, launched on 17 September 2015 to route a share of mining royalty into the welfare of mining-affected districts.
The scheme is implemented by District Mineral Foundations, non-profit trusts created by the 2015 amendment to the MMDR Act, 1957, and now set up in 656 districts across 23 States.
Lease holders contribute 10 per cent of royalty for leases granted on or after 12 January 2015 and 30 per cent for those granted earlier.
Over 4.70 lakh projects worth more than Rs 1 lakh crore have been sanctioned, of which 2.92 lakh stand completed and 78,809 are under execution as on July 2026.
The parent statute governing mineral concessions and royalty. It requires States to incorporate PMKKKY into the rules they frame for DMFs.
Inserted Section 9B creating District Mineral Foundations in every mining-affected district, and Section 9C creating the National Mineral Exploration Trust.
State Governments must follow it while framing DMF rules. PESA extends Panchayati Raj to Scheduled Areas under Article 244(1) and applies to ten States, vesting powers in the Gram Sabha.
Also binding on States framing DMF rules, since mining-affected areas frequently overlap with forest-dwelling tribal habitations.
Governs the administration of Scheduled Areas, which State Governments must respect in DMF rule-making.
Non-profit trust in every mining-affected district that collects statutory contributions from lease holders and implements PMKKKY projects
Non-profit trust funding regional and detailed exploration of non-coal minerals; financed by 2 per cent of royalty paid by lease holders
Administers PMKKKY, the MMDR Act and the national DMF portal
| Aspect | District Mineral Foundation | National Mineral Exploration Trust |
|---|---|---|
| Section of MMDR Act, 1957 | Section 9B | Section 9C |
| Level | District, under the State Government | National, under the Ministry of Mines |
| Contribution from lease holders | 10 per cent of royalty (leases on or after 12.01.2015); 30 per cent (earlier leases) | 2 per cent of royalty |
| Purpose | Welfare and development of mining-affected people and areas | Regional and detailed exploration of non-coal minerals |
GS Paper 2 > Governance > Welfare Schemes for Vulnerable Sections and their Performance
General Awareness > Government Schemes and Indian Polity
What is/are the purpose/purposes of 'District Mineral Foundations' in India? 1. Promoting mineral exploration activities in mineral-rich districts 2. Protecting the interests of the persons affected by mining operations 3. Authorizing State Governments to issue licences for mineral exploration Select the correct answer using the code given below.
Answer: 2 only
At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006?
Answer: Ministry of Tribal Affairs
Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void?
Answer: Fifth Schedule
The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to
Answer: protect the interests of Scheduled Tribes
Consider the following statements: 1. As per recent amendment to the Indian Forest Act, 1927, forest dwellers have the right to fell the bamboos grown on forest areas. 2. As per the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, bamboo is a minor forest produce. 3. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 allows ownership of minor forest produce to forest dwellers. Which of the statements given above is/are correct?
Answer: 2 and 3 only
The amount a mining lease holder pays in proportion to the quantity of mineral extracted; DMF and NMET contributions are calculated on it.
Areas notified under Article 244(1) and the Fifth Schedule, where special administrative safeguards apply.
A composite concession allowing exploration followed by mining, attracting the 10 per cent DMF contribution when granted on or after 12 January 2015.