**Executive Summary**
This document clarifies that the Ministry of New and Renewable Energy (MNRE) has not issued any advisory to financial institutions to halt lending to renewable energy power projects or renewable energy equipment manufacturing facilities. MNRE has circulated information on domestic manufacturing capacities in the solar PV sector to encourage a calibrated and well-informed approach to financing. The MNRE reaffirms its commitment to strengthening India's position in the global solar value chain to make India self-reliant in solar PV manufacturing. The aim is to achieve 500 GW of non-fossil fuel capacity by 2030.
**Key Points / Main Content**
* **Clarification on Financing:**
* MNRE has not issued any advisory to financial institutions to stop lending to renewable energy power projects or renewable energy equipment manufacturing facilities.
* **Approach to Financing:**
* Financial institutions should adopt a calibrated and well-informed approach when evaluating proposals for financing solar PV manufacturing facilities.
* They should explore and expand their solar PV manufacturing portfolio to include upstream stages (solar cells, ingots-wafers, polysilicon) and ancillaries (solar glass, aluminum frames).
* **Government Commitment:**
* The Government of India is committed to making India self-reliant in solar PV manufacturing.
* The government aims to establish India as a major player in the global value chain.
* This commitment is supported by initiatives like the PLI Scheme for High Efficiency Solar PV Modules.
* **Capacity Expansion:**
* Solar module manufacturing capacity has expanded from 2.3 GW in 2014 to approximately 122 GW in MNRE's Approved List of Models and Manufacturers (ALMM).
* **Renewable Energy Target:**
* India is committed to achieving 500 GW of non-fossil fuel capacity by 2030.
**Impact Analysis**
**Financial Institutions**
* **Impact:** Need to adopt a calibrated approach to evaluating financing proposals for solar PV manufacturing, expanding portfolios beyond just solar modules.
* **Action Required:** Consider financing upstream stages (solar cells, ingots-wafers, polysilicon) and ancillaries (solar glass, aluminum frames).
**Solar PV Manufacturers**
* **Impact:** Potential for increased investment and support in upstream and ancillary manufacturing.
* **Action Required:** N/A
**Government of India (MNRE)**
* **Impact:** Responsible for continuing policy support, infrastructure development, and innovation.
* **Action Required:** Continue engaging with stakeholders to ensure India's solar journey remains inclusive, competitive, and future ready.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The primary ministry responsible for policies related to renewable energy, including solar PV manufacturing, and the issuer of the clarified stance.
PLI Scheme for High Efficiency Solar PV Modules: A scheme designed to boost solar PV manufacturing in India.
Approved List of Models and Manufacturers (ALMM): A list maintained by MNRE, indicating approved manufacturers and models of solar PV modules.
Department of Financial Services: The department to which MNRE circulated the status of domestic manufacturing capacities.
PFC, REC and IREDA: NBFCs (Non-Banking Financial Companies) to which MNRE circulated the status of domestic manufacturing capacities.
Ministry of New and Renewable Energy
MNRE Calls for Calibrated, Well-Informed
Financing Across the Solar Manufacturing
Ecosystem to Drive Sustainable Industry Growth
MNRE Reaffirms Commitment to Strengthening India’s
Position in the Global Solar Value Chain
No Advisory Has Been Issued to Pause or Halt New RE
Financing
Posted On: 07 DEC 2025 11:00AM by PIB Delhi
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 stands at about 259 GW, with 31.2
GW added in the current financial year up to October 2025.
At several places it is being reported that Ministry of New & Renewable Energy (MNRE) has issued
advisory to lenders to pause fresh financing to Renewable Energy Projects amid significant overcapacity
concerns.
It is hereby clarified that MNRE has not issued any advisory to Financial Institutions for stopping
lending to either renewable energy power projects or to renewable energy equipment
manufacturing facilities.
However, MNRE, has circulated to Department of Financial Servies and NBFCs like PFC, REC and
IREDA, the status of present installed domestic manufacturing capacities across various sectors of solar
PV manufacturing, including solar modules and upstream stages like solar cells, ingots-wafers, polysilicon
as well as ancillary equipment like solar glass and aluminium frames, so that the financial institutions can
adopt a calibrated and well-informed approach while evaluating proposals for financing any
manufacturing facility in 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, etc. as well, rather than being limited to
financing solar PV module manufacturing facilities alone.
The Government of India is committed to make India self-reliant in solar PV manufacturing and establish
the country as a major player in the global value chain. This commitment is supported through a
comprehensive set of initiatives, including the PLI Scheme for High Efficiency Solar PV Modules and
measures to provide a level playing field for the Indian manufacturers. The catalytic effect of these
interventions has resulted in an expansion in solar module manufacturing capacity, from just 2.3 GW in
2014 to around 122 GW enlisted in MNRE’s Approved List of Models and Manufacturers (ALMM) today.This expansion underscores the success of Indian solar PV manufacturing story through the collective
efforts of industry, various State Governments and the Government of India, while also reinforcing India’s
commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and contributing meaningfully to
global decarbonization efforts. MNRE remains committed to further strengthening the solar manufacturing
ecosystem through continued policy support, infrastructure development, and innovation. The Ministry
will continue engaging with stakeholders to ensure India’s solar journey remains inclusive, competitive,
and future ready.
***
Navin Sreejith
(Release ID: 2199964) Visitor Counter : 3128
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