The Ministry of New & Renewable Energy (MNRE) has issued a clarification refuting media reports suggesting that lenders were advised to pause or halt fresh financing for renewable energy (RE) projects due to concerns over excess capacity in the solar manufacturing sector. In an official statement released on Sunday, the Ministry stressed that no such advisory has been issued and reaffirmed its commitment to supporting India’s clean energy expansion through informed and strategic financing decisions.
MNRE highlighted that India has already achieved a major climate milestone by securing 50% of its installed electricity capacity from non-fossil fuel sources five years ahead of the target outlined in its Nationally Determined Contributions (NDCs) under the Paris Agreement. As of 31 October 2025, the nation’s non-fossil energy capacity stands at approximately 259 GW, with a notable addition of 31.2 GW during the current financial year alone.
Clarifying its recent communication with financial institutions, the Ministry explained that it has not directed banks or non-banking financial companies to stop lending to renewable power projects or solar manufacturing units. Instead, MNRE has shared updated data on domestic solar PV manufacturing capacities with the Department of Financial Services and major renewable energy lenders such as PFC, REC and IREDA. The intention is to help lenders adopt a calibrated and well-informed approach when assessing new financing proposals. The Ministry encouraged institutions to diversify their investments across the solar value chain, including upstream components such as solar cells, wafers, ingots, polysilicon, and ancillary materials like solar glass and aluminium frames, rather than focusing exclusively on solar module manufacturing.
India’s solar manufacturing capability has expanded dramatically over the past decade. The country’s module manufacturing capacity has grown from just 2.3 GW in 2014 to around 122 GW now listed under the Approved List of Models and Manufacturers (ALMM). MNRE credited this rapid growth to supportive government measures, including the Production-Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules and policy interventions aimed at ensuring a level playing field for domestic manufacturers. These efforts, coupled with industry and state government cooperation, have significantly strengthened the nation’s position in the global solar supply chain.
Reaffirming its long-term vision, the Ministry stated that it remains committed to making India self-reliant in solar PV manufacturing and elevating the country’s role in global renewable energy markets. To achieve this, MNRE will continue to provide policy support, invest in infrastructure development and encourage innovation within the solar sector. The Ministry also emphasised ongoing engagement with stakeholders to ensure that India’s solar journey remains inclusive, competitive and aligned with the nation’s goal of reaching 500 GW of non-fossil fuel capacity by 2030.
