The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal to set up 12,000 mw of solar projects in the next four years, by state firms using domestic equipment. It gives a fillip to local manufacturers facing an onslaught by cheaper Chinese imports in auctioned projects.The government will give viability gap funding support of Rs 8,580 crore by Central or state entities for the projects, which would generate investment of Rs 48,000 crore in four years and keep local equipment plants running well for three to four years, it said.“The scheme will mandate use of both solar photovoltaic (SPV) cells and modules manufactured domestically as per specifications and testing requirements fixed by the ministry of new and renewable energy ,” said the CCEA.The scheme will also help boost Make in lndia by encouraging procurement of locally made solar equipment. “The scheme will create sufficient demand for domestically-produced SPV cells and modules for the next three to four years,” said the committee.India’s efforts to mandate local equipment has faced obstacles from the World Trade Organization when such conditions are imposed in auctions. However, officials said that if the government is setting up solar projects itself without inviting competitive bids, it can ask for local equipment to be used.The proposal will provide direct employment to around 60,000 people for about a year in pre-commissioning activities and construction phase, and around 18,000 persons for 25 years in operation and maintenance period, it said. More than 120,000 additional job opportunities will be created for the local population.