Latest context: The Centre has inserted a new clause into the Mines and Minerals (Development and Regulation) Amendment Act, 2021, that allows the Central Government to control the composition and utilisation of the District Mineral Foundation (DMF) funds.
Aspirants would find this topic very helpful while preparing for the IAS Exam.
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About Pradhan Mantri Khanij Kshetra Kalyan Yojana
The Ministry of Mines launched Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in 2015 for the welfare of areas and people affected by mining-related operations, using the funds generated by District Mineral Foundations (DMFs).
Objectives of PMKKKY
- To implement various developmental and welfare projects/programs in mining-affected areas, and these projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government;
- To minimise/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and
- To ensure long-term sustainable livelihoods for the affected people in mining areas.
Utilisation of funds under PMKKKY
The guidelines say that 60% of the DMF funds must be utilised for ‘high priority sectors’ and 40% is to be utilised for ‘other priority sectors’.
High priority sectors
Other priority sectors
Identification of affected areas and people to be covered under the PMKKKY
|Directly affected areas – where direct mining-related operations such as excavation, mining, blasting, beneficiation and waste disposal (overburdened dumps, tailing ponds, transport corridors etc.), etc. are located.
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Provisions of Pradhan Mantri Khanij Kshetra Kalyan Yojana
- Activities meant to be taken up under the ‘polluter pays principle’ should not be taken up under the PMKKKY. However, efforts shall be made to achieve convergence with the State and the District Plans so that the activities taken up by the Foundation supplement the development and welfare activities and are treated as extrabudgetary resources for the State Plan.
- The process to be adopted for utilisation of PMKKKY funds in the scheduled areas shall be guided by
- Provisions contained in Article 244 read with schedule V and Schedule VI to the Constitution relating to the administration of the Scheduled Areas and Tribal Areas
- The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996
- The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. Read more about the act the given link forest rights act
- Each Foundation will prepare and maintain a website, on which information will be hosted and kept updated.
- Implementation of Works / Contracts
- The DMF may procure works/goods after following the due procedure prescribed by the respective state governments for such procurements.
- Transfer of funds to all agencies and beneficiaries shall be into their bank account.
|Note: The new MMDR Amendment Act, 2021; Provided that the Central Government may give directions regarding composition and utilisation of funds by the District Mineral Foundation.
What is District Mineral Foundation?
- PMKKKY is implemented by the District Mineral Foundations (DMFs) of the respective districts.
- It is a non-profit body set up in those districts affected by the mining works.
- District Mineral Foundation (DMF) is a trust set up under Mines and Minerals (Development & Regulation) Amendment Act, 2015.
- The DMFs have been directed to take all major decisions in a participatory mode, in consultation with the ‘gram sabhas’ of the respective villages.
|Mines Minerals development Regulation Amendment Act 2015||IAS Salary|
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