The Union Cabinet cleared the Payment Security Scheme to enable financial closure of projects under the mission by extending Gross Budgetary Support (GBS) amounting to Rs 486 crore to the New and Renewable Energy Ministry (MNRE),
The scheme will help MNRE in the event of defaults in payment by the state utilities to NTPC Vidyut Vyapar Nigam (NVVN), the Central Agency which will purchase solar power from the developers and sell it to the utilities bundled with unallocated thermal power available from NTPC utilities.
The scheme will facilitate setting up 1000 MW grid connected solar power projects to achieve targets of the National Solar Mission, the spokesperson said.
The National Solar Mission was launched by the Government last year for deployment of 20,000 MW of solar power by 2022.