Denying reports of issuing any advisory to lenders to pause fresh financing to renewable energy projects amid significant overcapacity concerns, the Ministry
of New & Renewable Energy (MNRE) has clarified that no such advisory has been issued to financial institutions for stopping lending to either renewable energy power projects or renewable energy equipment manufacturing facilities.
However, MNRE has circulated the status of present installed domestic manufacturing capacities across various sectors of solar PV manufacturing to the Department of Financial Services (DFS) and NBFCs like PFC, REC, and IREDA. Sectors of solar PV manufacturing include solar modules as well as upstream stages like solar cells, ingots-wafers, polysilicon, as well as ancillary equipment like solar glass and aluminium frames.
The move is aimed at enabling financial institutions to adopt a "calibrated and well-informed approach while evaluating proposals for financing any manufacturing facility" in the solar PV manufacturing sector and explore and expand their solar PV manufacturing portfolio to upstream stages like solar cells, ingots-wafers and polysilicon, as well as solar module ancillaries like solar glass and aluminium frames. The move intends to prevent financing from being limited to solar PV module manufacturing facilities alone.
India has already achieved 50% 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 31 October 2025, the installed capacity from non-fossil sources stood at about 259 GW, with 31.2 GW added in the current financial year up to October 2025. India aims to achieve 500 GW of non-fossil fuel capacity by 2030.
India aims to become self-reliant in solar PV manufacturing and establish itself as a major player in the global value chain through initiatives like the PLI Scheme for High-Efficiency Solar PV Modules along with measures to provide a level playing field for Indian manufacturers. Solar module manufacturing capacity has expanded from 2.3 GW in 2014 to around 122 GW listed in MNRE’s Approved List of Models and Manufacturers (ALMM) today.
