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Performance
Karnataka

Report No. 7/ 2025 of the CAG of India on Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) including District Mineral Foundation Trust (DMFT)

Date on which Report Tabled:
Wed 17 Dec, 2025
Date of sending the report to Government
Tue 04 Nov, 2025
Government Type
State
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Sector Industry and Commerce

Overview

With a view to ensure welfare of areas and people affected by mining related operations using the funds generated by District Mineral Foundations (DMFs), Government of India launched Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in September 2015. The objectives of PMKKKY are (a) 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 (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

The District Mineral Foundation Trusts (DMFTs) have collected an amount of ₹ 4,003.51 crore and incurred expenditure to the tune of ₹ 1,826.46 crore since the scheme initiation till the end of March 2023. 

The DMFTs sanctioned 10,865 projects under PMKKKY and allocated funds to the extent of ₹ 3,902.00 crore as on March 2023.

To assess the extent of utilization of DMF funds for the interest and benefit of persons and areas affected by mining related operations, a Performance Audit has been conducted to evaluate the creation of District Mineral Foundations Trusts (DMFTs), available corpus of the DMFTs and compliance to administrative and accountability mechanism for their utilisation in the State, as envisaged in the scheme, Acts and rules notified. 

This Performance Audit covers the administrative aspects of implementation of PMKKKY, other important aspects of socio-cultural and socio-psychological issues, impact on livelihood, health, etc. relating to migration/displacement of tribal/local population due to mining activities.

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