- Why in news
- On 17 September 2026, PIB marked the PMKKKY's launch anniversary (launched 17 September 2015) with an explainer. It reports over 4.70 lakh projects sanctioned and DMFs set up in 656 districts across 23 States.
- What it is
- PMKKKY is a welfare scheme for areas and people affected by mining. It is implemented by District Mineral Foundations, which are non-profit trusts set up under the MMDR Act, 1957 as amended in 2015. DMF money comes from contributions by mining lease holders and is spent on mining-affected areas.
- Legal basis
- DMFs were created by the 2015 amendment to the MMDR Act, 1957. They are non-profit trusts under State Government jurisdiction.
- Coverage
- DMFs have been set up in 656 districts across 23 States. Each State has framed its own DMF rules.
- Tribal safeguards
- State rules must follow the provisions on Scheduled and Tribal Areas, the PESA Act 1996 and the Forest Rights Act 2006.
Don’t confuse with DMF vs PMKKKY: DMF is the district trust that collects the money. PMKKKY is the scheme under which DMF funds are spent.
Don’t confuse with DMF vs National Mineral Exploration Trust: DMF serves mining-affected districts. NMET funds mineral exploration and is funded by 2% of royalty.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Returns a share of mining revenue to people who bear displacement, pollution and loss of livelihood.
- Supports tribal and remote areas through safeguards linked to PESA and the Forest Rights Act.
- Funds drinking water, health, education and livelihoods in mining districts.
Problems
- Many projects remain unfinished: of 4.70 lakh sanctioned, 2.92 lakh are completed.
- Each State has its own DMF rules, so quality of planning and local participation varies.
- Gram sabha consultation in Scheduled Areas can be weak, and affected people may have little say in priorities.
Way forward
- Strengthen gram sabha involvement in planning, as the 2024 guidelines aim to do.
- Publish project and fund data openly on the National DMF Portal and audit outcomes, not only spending.
- Build capacity in district administrations to plan and complete projects on time.
Put in your answer
Coverage: DMFs exist in 656 districts across 23 States.
Revised guidelines: Revised PMKKKY guidelines were issued in January 2024 to update planning and execution of projects.
- 2016Mains GS4 · Q10Plight of mining-displaced communities and inadequate compensation; ways to address
- 2025Mains GS3 · Q17Mining as environmental hazard; remedial measures needed
- 2016Prelims Q62Purposes of District Mineral Foundations; which statements are correct
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The Pradhan Mantri Khanij Kshetra Kalyan Yojana is implemented by the District Mineral Foundations, which were introduced through the 2015 amendment to the Mines and Minerals (Development and Regulation) Act, 1957.
- 2.For mining leases granted before 12 January 2015, the contribution to the District Mineral Foundation is 10 per cent of the royalty.
- 3.Under the scheme, irrigation and physical infrastructure fall among the high-priority sectors that must receive at least 70 per cent of the funds.
Which of the statements given above is/are correct?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.PMKKKY is implemented by the District Mineral Foundations using funds that accrue to them under the MMDR Act.
True. DMFs implement the scheme with their own funds.
2.District Mineral Foundations were introduced through the 2015 amendment to the Mines and Minerals (Development and Regulation) Act, 1957.
True. The 2015 amendment introduced DMFs.
3.At least 70 per cent of PMKKKY funds must be used for high-priority sectors including drinking water, health care and education.
True. At least 70% goes to high-priority sectors.
4.Irrigation and physical infrastructure are high-priority sectors under PMKKKY.
False. They are other priority sectors, with up to 30% of funds.
5.DMFs are statutory trusts run for profit, with funds pooled at the national level.
False. DMFs are non-profit trusts and funds are collected at the district level.
6.In framing DMF rules, States are expected to follow the PESA Act, 1996 and the Forest Rights Act, 2006.
True. State rules follow PESA and FRA provisions for Scheduled and Tribal Areas.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Pradhan Mantri Khanij Kshetra Kalyan Yojana completed nine years since its launch in 2015, with District Mineral Foundations set up in 656 districts across 23 States and over 4.70 lakh projects sanctioned. Examine the provisions of the scheme and the District Mineral Foundation framework. Discuss the challenges in ensuring that mining-affected communities, particularly Scheduled Tribes, actually benefit.
Worth revising until Prelims 2028: most news questions come within two years of the event.