Union Ministry Clarifies Misconceptions on Financing Status

New Delhi: The Union Ministry of New and Renewable Energy (MNRE) on Sunday clarified that the government has not issued any advisory directing Financial Institutions to stop lending to renewable energy projects, countering media reports that claimed otherwise.

In an official statement, the ministry emphasised that no directive has been issued to pause financing of new green energy projects or renewable energy equipment manufacturing units.

However, MNRE confirmed that it has shared the latest status of domestic manufacturing capacity in the solar PV sector with the Department of Financial Services and non-banking financial companies (NBFCs) such as PFC, REC and IREDA. The ministry said this information was circulated to enable a calibrated and well-informed approach while evaluating funding proposals.

According to the government, the objective is to encourage financial institutions to expand their solar PV manufacturing portfolios beyond module production to upstream segments, including solar cells, ingots-wafers, polysilicon, and ancillary components such as solar glass and aluminium frames.

The ministry reiterated the government’s commitment to making India self-reliant in solar PV manufacturing and establishing the country as a key global player in the renewable energy value chain. A combination of initiatives, including the PLI Scheme for High-Efficiency Solar PV Modules and policies providing a level playing field for domestic manufacturers, has supported this progress.

India’s solar module manufacturing capacity has surged from 2.3 GW in 2014 to 122 GW today, registered under MNRE’s Approved List of Models and Manufacturers (ALMM). The ministry said this growth underscores the success of India’s green energy strategy through collective efforts of the renewable energy industry, state governments, and the Centre.

MNRE reaffirmed its commitment to strengthening India’s solar manufacturing ecosystem through policy support, innovation and infrastructure development, while continuing stakeholder consultations to ensure India’s renewable energy transition remains competitive, future-ready and inclusive.

India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of its Paris Agreement target. As of 31 October, the installed capacity from non-fossil sources stands at around 259 GW, with 31.2 GW added during FY 2025 up to October, the ministry added.

IANS

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