The Ministry of New & Renewable Energy (MNRE) has reaffirmed that it has not issued any advisory directing financial institutions to pause or halt lending to renewable energy projects or solar manufacturing facilities. The clarification comes amid media reports suggesting that the Ministry had urged lenders to suspend new financing due to concerns of overcapacity within India’s solar manufacturing sector.
MNRE clarified that no such directive has been issued and that renewable energy financing remains fully supported as part of India’s long-term clean energy transition.
India achieves major milestone in non-fossil fuel capacity
India has already achieved 50 per cent of its installed electricity capacity from non-fossil fuel sources, reaching this target five years ahead of the deadline set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. As of 31 October 2025, the country’s installed non-fossil capacity stands at approximately 259 GW, including 31.2 GW added in the current financial year up to October 2025. This milestone underscores India’s rapid progress towards a low-carbon energy system.
Emphasis on informed calibrated financing
MNRE explained that it has shared the current status of domestic manufacturing capacities with the Department of Financial Services and key non-banking financial institutions such as PFC, REC and IREDA. The purpose, the Ministry said, is to enable financial institutions to adopt a calibrated, well-informed approach when assessing proposals in the solar manufacturing space.
The Ministry encouraged lenders to broaden their financing scope beyond solar module manufacturing and to explore upstream components such as solar cells, ingots, wafers and polysilicon, as well as ancillary manufacturing for solar glass and aluminium frames. This approach aims to create a more balanced and robust domestic solar manufacturing ecosystem, reducing reliance on imports and strengthening India’s position in the global solar value chain.
Government commitment to solar self-reliance
The Government of India continues to prioritise self-reliance in solar PV manufacturing, supported by initiatives including the Production-Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules and policy measures designed to ensure a level playing field for domestic manufacturers.
These interventions have had a transformative impact. India’s solar module manufacturing capacity has surged from 2.3 GW in 2014 to around 122 GW enlisted today under MNRE’s Approved List of Models and Manufacturers (ALMM). This rapid scaling highlights the success of India’s manufacturing ecosystem, driven by industry, central and state governments, and consistent policy support.
The Ministry noted that this growth reinforces India’s commitment to achieving 500 GW of non-fossil fuel energy capacity by 2030, while contributing significantly to global decarbonisation efforts.
Future-ready, competitive and inclusive growth
MNRE stated that it remains dedicated to strengthening the solar manufacturing ecosystem through continued policy support, infrastructure development and technology innovation. The Ministry will maintain close engagement with stakeholders across the renewable energy sector to ensure India’s solar industry remains inclusive, globally competitive and future-ready.
The clarification underscores the government’s continued confidence in renewable energy expansion and its commitment to fostering a sustainable, diversified and resilient solar manufacturing value chain.
