The Ministry of New and Renewable Energy (MNRE) has urged financial institutions to take a calibrated approach when funding solar projects, while also exploring and expanding their solar PV manufacturing portfolios.
The ministry on Sunday clarified that it has not issued any advisory instructing lenders to halt financing for renewable energy power projects or equipment manufacturing facilities.
Calibrated Funding
However, MNRE has circulated information to the Department of Financial Services and non-banking financial companies such as PFC, REC, and IREDA on the current domestic manufacturing capacities across various segments of solar PV production. These include solar modules, upstream stages such as solar cells, ingots-wafers, polysilicon, and ancillary equipment like solar glass and aluminum frames. The move aims to help financial institutions adopt a well-informed approach when evaluating financing proposals and to encourage expansion beyond module manufacturing into upstream and ancillary segments.
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, the ministry said.
As of October 31, the country’s installed capacity from non-fossil sources stood at about 259 GW, with 31.2 GW added in the current financial year through October 2025.
Achieving Self-Reliance
The government remains committed to making India self-reliant in solar PV manufacturing and establishing the country as a key 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,” MNRE said.
The country’s solar module manufacturing capacity has surged to around 122 GW listed in the Approved List of Models and Manufacturers (ALMM) today, up from just 2.3 GW in 2014.
India has set a target of achieving 500 GW of renewable energy capacity by 2030, with plans to develop a fully indigenous solar value chain.
“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,” it said in a statement.