Mining can generate employment and revenue, but communities living in mining-affected areas can also face challenges related to infrastructure, health, education, water and livelihoods. To address some of these local needs, the Government of India operates the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
The scheme uses funds collected through District Mineral Foundations (DMFs) to support people and areas affected by mining activities. The government recently highlighted PMKKKY in a September 2026 factsheet.
What is PMKKKY?
The Pradhan Mantri Khanij Kshetra Kalyan Yojana was introduced to ensure that people living in mining-affected areas receive benefits from mineral development.
The scheme works through District Mineral Foundations, which are established in mining districts.
Funds collected by these foundations are used for development and welfare projects in areas affected by mining operations.
Who can benefit?
The beneficiaries are primarily people living in mining-affected areas.
This can include communities that are directly affected by mining as well as people living in areas indirectly impacted by mining-related activities.
The exact projects and beneficiaries depend on the district's identified mining-affected areas and the priorities approved by the relevant authorities.
What kind of projects are covered?
PMKKKY focuses on basic services and infrastructure in mining-affected areas.
Projects can cover areas such as:
- Drinking water supply
- Healthcare
- Education
- Sanitation
- Skill development
- Livelihood generation
- Environmental protection
- Women's and children's welfare
- Rural infrastructure
This means the scheme is not designed as a direct cash-transfer programme for every resident of a mining district.
Instead, funds are generally used for development projects that benefit affected communities.
How are the funds generated?
District Mineral Foundations receive contributions from mining lease holders.
The amount contributed depends on the applicable mining regulations and the date on which the mining lease was granted.
These funds are then used for projects approved under the DMF framework.
This creates a mechanism through which part of the economic value generated from mining can be directed towards development in affected communities.
What does this mean for ordinary residents?
A person living in a mining-affected village may benefit through infrastructure or public services created using DMF funds.
For example, a district could use available funds to improve a local drinking-water system, construct healthcare infrastructure, upgrade schools or develop roads and other facilities.
However, the availability of a particular benefit depends on the projects approved in that district.
Who decides where the money is spent?
District-level authorities play an important role in identifying mining-affected areas and planning projects.
The framework provides for prioritisation of sectors and implementation of projects according to the requirements of affected communities.
Therefore, PMKKKY projects can differ considerably from one mining district to another.
Can individuals apply for PMKKKY money?
PMKKKY is different from schemes where individuals submit an application to receive a fixed financial benefit.
In many cases, the benefit reaches residents through community infrastructure and welfare projects.
People living in mining-affected areas can therefore contact their District Mineral Foundation or district administration to find out which projects are approved or being implemented locally.
Why is the scheme important?
Mining activities can have effects beyond the boundaries of an individual mining site.
Communities may require better infrastructure, healthcare, education, drinking water and livelihood opportunities as mining activity develops.
PMKKKY provides a framework for directing DMF resources towards these development needs.
The government has included PMKKKY among its current programmes related to mineral-sector development and mining-affected communities.
What should residents do?
If you live in an area where mining takes place, you can check whether your village or locality has been identified as a mining-affected area.
You can also approach the district administration or the District Mineral Foundation to find information about:
- Approved DMF projects
- Ongoing infrastructure works
- Healthcare and education projects
- Skill-development programmes
- Drinking-water initiatives
- Livelihood programmes
- Projects proposed for your locality
Local residents can also check whether their district publishes DMF project information online.
Bottom line
The Pradhan Mantri Khanij Kshetra Kalyan Yojana is designed to channel District Mineral Foundation funds towards development and welfare in mining-affected areas.
Unlike a direct cash-transfer scheme, PMKKKY generally benefits communities through projects involving healthcare, education, drinking water, infrastructure, livelihoods and other essential services.
