Mines Schemes

PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA (PMKKKY) -- Detailed Notes

Purpose: To ensure certain minimum provisions for development programme by all District Mineral Foundations (DMFs) Legal recognition: Launched in 2015 by Centre under Mines and Minerals (Development and Regulation) or MMDR Act, 1957 Beneficiaries: Directly affected people and directly or indirectly affected areas Accountability: Provides for yearly audit of the accounts of the DMFs Quick Facts To implement various developmental and welfare projects/programs in mining affected areas , and complement the existing ongoing schemes/projects of State and Central Government.

To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts. To ensure long-term sustainable livelihoods for the affected people in mining areas. Objective DMF: DMF is a non-profit trust under MMDR Act , 1957 set up by the State Governments in all mining- affected districts. Chairman of Governing Council and Managing Committee of DMF shall be the District Magistrate/ Deputy Commissioner/ Collector of the district.

• Mining companies are required to contribute 10% and 30% of the royalty (depending on the date of mining lease granted) to DMFs , in addition to the royalty paid to state governments Affected areas: The DMF shall prepare and maintain an updated list of affected areas by mining related operations Directly affected areas: An area within such radius from a mine or cluster of mines as may be specified by the state government but shall not extend beyond 15 Km from the boundary of mines of minerals (other than minor minerals) Indirectly affected areas: An area within such radius from a mine or cluster of mines as may be specified by the state government but shall not extend beyond 25 Km from the boundary of mines Salient Features

of minerals (other than minor minerals), irrespective of whether it falls with the district concerned or adjacent districts. Affected people: The DMF shall prepare and maintain an updated list of such affected persons/local communities which incorporates ‘Affected family’ as well as ‘displaced family’ as defined under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Any other as appropriately identified by the concerned Gram Sabha. Utilisation of Funds:

High priority Sectors (at least 70% of PMKKKY funds to be utilized): Drinking water supply; Environment preservation and pollution control measures; Health care; Education; Welfare of Women and Children; Welfare of aged and differently abled; Skill development and Livelihood generation; Sanitation; Housing; Agriculture; Animal Husbandry. Other priority Sectors (Up to 30% of the PMKKKY funds to be utilized): Physical infrastructure; Irrigation; Energy and Watershed Development; Any other measures for enhancing environmental quality in the mining affected district.

Distribution of funds in directly and indirectly affected areas: A minimum of 70% of the DMF funds shall be spent only in the directly affected area. Endowment fund: It should be used for creating & sustaining livelihoods in areas where mining activity has stopped due to any reason including exhaustion of mineral. Sum not exceeding 10% of the annual receipts should be kept as endowment fund in the districts having annual collection of Rs. 10 crore or more. The endowment fund may be invested in government securities/bonds and FDs of scheduled banks and other instruments as are permitted by the State Government.

Project Management Units (PMUs): The DMF with annual collection in the excess of Rs. 50 crore shall set up a PMU Unit for planning, technical, accounting and monitoring support. Direct Benefit Transfer (DBT): Transfer of fund to all executing agencies and beneficiaries shall be through DBT only into their bank account. Baseline survey for planning: Districts shall conduct a baseline survey for perspective plan formulation. Gram Sabha/Local Bodies may aid in preparation of need assessment reports.

Five years Perspective Plan: Based on the findings and gaps as identified through the baseline survey or any such survey/ assessment, the DMF shall prepare a strategy for five years and the same shall be included in the Perspective Plan. PMKKKY calls for Convergence of Schemes DMFs shall focus on convergence with ongoing central and state schemes for achieving the SDGs in mining- affected areas. Efforts shall be made to achieve convergence with the State and the District Plans so that the activities taken up by the DMF supplement welfare activities and are treated as extra- budgetary resources for the State Plan.

Perspective Plan. PMKKKY calls for Convergence of Schemes DMFs shall focus on convergence with ongoing central and state schemes for achieving the SDGs in mining- affected areas. Efforts shall be made to achieve convergence with the State and the District Plans so that the activities taken up by the DMF supplement welfare activities and are treated as extra- budgetary resources for the State Plan.

Priority should be given to achieving targets under Aspirational Districts Programme and Aspirational Blocks Programme. Activities meant to be taken up under the ‘polluter pays principle’ should not be taken up under the PMKKKY. Provisions guiding the process for utilization of PMKKKY funds in the scheduled areas Article 244 read with Schedule V and Schedule VI to the Constitution relating to administration of the Scheduled Areas and Tribal Areas Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

Annual Plans: The Annual Plans of the DMF shall be based upon the five-year perspective plan and success achieved in fulfilling its targets in earlier years. The Annual Plans may include some other works and expenditures considered urgent in nature although not included in the perspective plan to a maximum extent of 10% of the annual plan. Key provisionsd for enuring Transparency & Accountability List of areas and people affected by mining, 5 years Perspective Plan, details of investment of endowment fund, etc. shall be displayed on a website by DMF Voluntary disclosures under RTI Act, 2005 Central Government shall develop an online portal for approval of projects, release of funds and monitoring of implementation of the project Accounts of the DMF shall be audited by the CAG, and by a Chartered Accountant appointed by the DMF or by such other manner as the Government may specify. Such audit report shall be placed in the public Grievance Redressal: The DMFs shall devise and implement a grievance redressal mechanism so that each grievance is redressed, and a suitable reply is given to the complainant within 30 days of making a complaint to the Collector or any other officer as may be notified.

Compliance mechanism: Penalty provisions for DMF in case of failure to comply with specific provisions.