According to reports, in an effort to fast-track the National Solar Mission, the Government on Thursday approved a scheme which will help in availability of funds for carrying out projects under the mission.
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), an official spokesperson said here.
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 core component of the Payment Security Scheme is to create Solar Payment Security Account (SPSA) financed from GBS to MNRE to have availability of adequate funds to address all possible payment related risks in case of defaults.
The Payment Security Scheme (PSS) will be implemented by the Ministry of New and Renewable Energy (MNRE).
A Fund Management Committee (FMC) will oversee the overall implementation of this scheme and shall be empowered to issue any directions to remove any difficulties with regards to its implementation.