New Delhi, Feb 26 (IANS): The union cabinet Wednesday approved the setting up of 15,000 MW of grid connected solar power projects through the state-run generator NTPC under the National Solar Mission.

"Successful completion of additional 15,000 MW capacity of grid-connected solar photo voltaic power generation projects, mainly in the private sector, with largely private investment, under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power," the cabinet communique said.

This would also help reduce consumption of kerosene and diesel, the release added.

The projects will be executed by NTPC Vidyut Vyapar Nigam (NVVN), an arm of NTPC, in three tranches.

In Tranche-I, the solar plants are based on bundling of solar power with unallocated thermal power.

The bundled power will be allotted to various states that offer to provide land for setting up the solar power projects, and to those which would purchase a major portion of the bundled solar power for consumption within the state and ensure connectivity to the solar power project, the statement said.

One thousand megawatt capacity out of the 3,000 MW under the bundling scheme will be set up on land already identified in Andhra Pradesh.

"The balance 2,000 MW capacity under the Bundling Scheme will be allotted in other interested states that come forward," the cabinet approval said.

"Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules," the statement added.

According to the government, the first phase of the National Solar Mission (2010-2013) had a target of 1,100 MW for grid connected solar power generation capacity, against which 1,685 MW has been set up under various schemes.