New Delhi: In a bid to expedite development in the mineral-rich districts in the country, the mining firms will have to pay together an additional Rs 10000 crore per year that would be used in the development of such districts.

The pooled in money would be deposited with the District Mine and Mineral Foundation, the formation of which has been proposed in the new Mines & Minerals (Regulation and Development) Bill, 2011.

READ MORE: New Mines Bill approved by Cabinet

The draft MMRD bill is likely to get Cabinet nod in a meeting chaired by the Prime Minister Manmohan Singh on Friday.

Despite opposition from the corporate world, the Centre has asked the mining companies to contribute into the fund for development of the districts where the mining companies extract mines from.

MMDR mandates the coal extracting companies to provide 26 percent of their net profit (post-tax profit) for welfare of the affected people.

The proposed bill suggests non-coal miners like Bauxite, Cobalt, Manganese and Iron Ore firms to share an amount equal to that of royalty with the District Development Funds.

The district fund will be chaired by the District Magistrate (DM) while the District Board Chairman will have a greater say in the spending of the funds for development projects.

The two tier monitoring arrangement is being devised for utilization of the fund.

The new bill also provides for setting up of National Mining Regulatory Authority and Tribunal and formation of District Mineral Foundations in 60 mineral-rich districts across the country.

If the bill is passed, an estimated amount of Rs 10,000 crore will be generated per year from the miners and an average of Rs 180 to 200 crore will be distributed among District Mining Foundations of 60 mineral-rich districts that include 25 naxal-affected districts.