New Delhi, Feb 7 (IANS): The government on Wednesday approved a proposal for setting up of 12,000 MW of solar power projects by state-run producers.

According to the Cabinet Committee on Economic Affairs (CCEA), the producers will be provided with a viability gap funding support of Rs 8,580 crore for self-use or use by both central and state government entities.

The Ministry of New & Renewable Energy's proposal -- Central Public Sector Undertaking Scheme Phase-II -- envisages to set up 12,000 MW grid-connected solar photovoltaic (PV) power projects in four years period.

The CCEA decided that 12,000 MW or more of grid connected solar PV power projects would be set up by government producers in 4 years i.e. 2019-20 to 2022-23, thereby creating investment of about Rs 48,000 crores, an official statement said.

"The scheme will also help in giving a push to 'Make-in-lndia' by encouraging government producers to procure solar cells and modules from domestic manufacturers. The scheme will create sufficient demand for domestically produced solar PV cells and modules for next 3 to 4 years."

The scheme will mandate use of both solar photovoltaic cells and modules manufactured domestically as per specifications and testing requirements fixed by the ministry.

As per the statement, the proposal will provide direct employment to around 60,000 persons for about one year in the construction phase and around 18,000 persons for about 25 years in the operation and maintenance period.

In addition, more than 120,000 additional employment opportunities will be created for the local population by way of involvement in setting up of solar power projects and also in manufacturing of domestically produced cells and modules.