Miners to pay 10 per cent royalty to tribal welfare

Q.  Centre has notified which scheme making it mandatory for mining companies to contribute 10 to 30 percent royalty for tribal welfare and other affected persons in mining areas?
- Published on 17 Sep 15

a. Prime Minister Jan Dhan Yojana
b. Pradhan Mantri Kaushal Vikas Yojana
c. Pradhan Mantri Khanij Kshetra Kalyan Yojana
d. None of the above

ANSWER: Pradhan Mantri Khanij Kshetra Kalyan Yojana
 
PM has promised INR 6000 crore for tribal development in areas where mining is carried out.

Each district where mining activity has to be carried out will have to set up a District Mineral Foundation under DM or DC. Foundation will identify persons affected by mining and work undertaken for their welfare. In case of all mining leases executed prior to January 12, 2015, mines will have to pay around 30% of the royalty to DMFs. Where mining leases are granted following January 12 2015, rate of contribution will be 10% of royalty. Close 60% of the funds under PMKKKY have to be used for high priority areas such as schools, primary health care centres, women and child development, drinking water supply , environment preservation and pollution control measures. Around 40% funds can be used for infrastructure projects such as physical infrastructure, irrigation, energy and watershed development and any other measures for enhancing environment quality in mining districts. INR 6,000 crore is the expected amount under this scheme as total royalty for major minerals is INR 20,000 crore.

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