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The Ministry of New and Renewable Energy (MNRE) on Sunday clarified that it has not issued any advisory to financial institutions to stop lending to renewable energy projects or renewable energy equipment manufacturers.
The clarification came after reports claimed that the ministry had asked lenders to pause new financing for renewable projects due to concerns about overcapacity. "MNRE calls for calibrated, well-informed financing across the solar manufacturing ecosystem to drive sustainable industry growth. MNRE reaffirms commitment to strengthening India's position in the global solar value chain. No advisory has been issued to pause or halt new RE financing," the Ministry added in a release. India has already achieved 50 per cent of its installed electricity capacity from non-fossil fuel sources, five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement. As of October 31, the installed capacity from non-fossil sources stands at about 259 GW, with 31.2 GW added in the current financial year up to October 2025. The release added that the MNRE has shared the status of current domestic manufacturing capacities with the Department of Financial Services and NBFCs such as PFC, REC, and IREDA. This includes data across various segments of solar PV manufacturing, including solar modules and upstream components such as solar cells, ingots, wafers, and polysilicon. It also covers ancillary equipment such as solar glass and aluminium frames. The ministry said this information will help financial institutions adopt a calibrated, well-informed approach when evaluating proposals for solar PV manufacturing units. It aims to encourage lenders to expand their portfolios into upstream manufacturing stages and ancillary components, rather than limiting financing to solar module production alone. The Government of India is committed to making India self-reliant in solar PV manufacturing and establishing the country as a major player in the global value chain, the release added. It further added that the commitment is supported through a comprehensive set of initiatives, including the PLI Scheme for High Efficiency Solar PV Modules and measures to provide a level playing field for the Indian manufacturers. The catalytic effect of these interventions has resulted in an expansion in solar module manufacturing capacity, from just 2.3 GW in 2014 to around 122 GW enlisted in MNRE's Approved List of Models and Manufacturers (ALMM) today, the release added. "This expansion underscores the success of India's solar PV manufacturing story through the collective efforts of industry, various State Governments and the Government of India, while also reinforcing India's commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and contributing meaningfully to global decarbonization efforts," the Ministry stated. MNRE further added that the Ministry will continue engaging with stakeholders to ensure India's solar journey remains inclusive, competitive, and future-ready. (ANI)
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