The Impressive TimesNew Delhi : The Ministry of New & Renewable Energy (MNRE) has called for a calibrated and well-informed financing approach across the solar manufacturing ecosystem to ensure sustainable and balanced growth of the renewable energy sector. The Ministry also reaffirmed that no advisory has been issued to financial institutions to pause or halt fresh lending to renewable energy (RE) projects.
India continues to strengthen its clean energy footprint, having already achieved 50% of its installed electricity capacity from non-fossil fuel sources—a milestone reached five years ahead of the target 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 259 GW, with 31.2 GW added in the current financial year alone.
In response to reports claiming that MNRE had urged lenders to stop financing RE projects due to concerns over overcapacity, the Ministry issued a clear clarification. MNRE confirmed that no such advisory has been issued to banks or financial institutions regarding lending restrictions on renewable energy power projects or equipment manufacturing facilities.
However, MNRE has shared updated data with the Department of Financial Services and key NBFCs—including PFC, REC, and IREDA—regarding the current domestic manufacturing capacities across the solar PV value chain. This includes solar modules, cells, ingots-wafers, polysilicon, and ancillary components such as solar glass and aluminium frames. The objective is to help institutions make strategic, informed investment decisions and encourage them to diversify lending across upstream and ancillary segments, rather than concentrating mainly on module manufacturing.
The Government of India remains committed to building a self-reliant, globally competitive solar manufacturing ecosystem. Backed by initiatives such as the PLI Scheme for High-Efficiency Solar PV Modules, India’s manufacturing capacity has witnessed remarkable growth—from 2.3 GW in 2014 to nearly 122 GW enlisted in MNRE’s Approved List of Models and Manufacturers (ALMM) today.
This rapid expansion underscores the success of India’s solar manufacturing journey, driven by strong collaboration between industry stakeholders, State Governments, and the Central Government. It also reaffirms India’s pledge to achieve 500 GW of non-fossil fuel capacity by 2030, significantly contributing to global decarbonisation efforts.
MNRE reiterated its commitment to further strengthening the solar ecosystem through continued policy support, infrastructure expansion, research and innovation, and close engagement with stakeholders to ensure that India’s solar transition remains inclusive, competitive, and future-ready.
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