To give a big push to the National Solar Mission, which aims at tapping 20,000 MW of solar power by 2022, the Union Cabinet, at a meeting on Thursday, approved a scheme that will help in providing funds for the projects under the mission.

The meeting, chaired by Prime Minister Manmohan Singh, cleared the payment security scheme that will help in financial closure of the projects by extending Rs. 486 crore in Gross Budgetary Support to the New and Renewable Energy Ministry, an official spokesman said.

It will help the Ministry in case the State utilities default on payment to NTPC Vidyut Vyapar Nigam, which will buy solar power from the developers and sell it to the utilities bundled with unallocated thermal power available from NTPC utilities.

The spokesman said the scheme would facilitate the setting up of 1000 MW grid-connected power projects to achieve the targets of the Mission launched last year.

The scheme's core component is to create Solar Payment Security Account financed from Gross Budgetary Support to the New and Renewable Energy Ministry to ensure adequate funds to address all possible payment-related risks.

A fund management committee will oversee the implementation of this scheme. The Ministry will be empowered to remove any hurdle in the implementation.