The Ministry of New and Renewable Energy (MNRE) has clarified that it has not issued any advisory directing financial institutions to pause or halt fresh financing to renewable energy projects or equipment manufacturing facilities. The clarification comes amid reports suggesting that lending to the renewable sector was being discouraged due to concerns over overcapacity.
The ministry said India has already achieved 50 percent of its installed electricity capacity from non-fossil fuel sources, five years ahead of its Nationally Determined Contributions (NDC) target under the Paris Agreement. As of October 31, 2025, installed non-fossil capacity stands at about 259 GW with 31.2 GW added during the current financial year up to October.
MNRE stated that it has only shared information on the current status of domestic solar photovoltaic manufacturing capacities with the Department of Financial Services and financial institutions such as Power Finance Corporation Ltd (PFC), REC Ltd and Indian Renewable Energy Development Agency Ltd (IREDA). This includes capacities across the solar value chain covering modules solar cells ingot wafers polysilicon and ancillary equipment such as solar glass and aluminium frames.
The ministry said the intent of this communication was to enable lenders to adopt a calibrated and well informed approach while evaluating proposals for financing solar PV manufacturing units. Financial institutions have also been encouraged to expand financing beyond module manufacturing alone and explore upstream segments such as solar cells ingot wafers and polysilicon as well as balance of system components.
MNRE reiterated the government’s commitment to making India self-reliant in solar PV manufacturing and strengthening its position in the global solar value chain. It highlighted that supported by policy measures such as the Production Linked Incentive (PLI) scheme for high efficiency solar PV modules and market enabling interventions India’s solar module manufacturing capacity has expanded from 2.3 GW in 2014 to around 122 GW currently enlisted under the Approved List of Models and Manufacturers.
The ministry said this growth reflects coordinated efforts across industry state governments and the centre and aligns with India’s target of achieving 500 GW of non-fossil fuel capacity by 2030. MNRE added that it will continue engaging with stakeholders to ensure the solar manufacturing ecosystem remains competitive inclusive and future ready.
