MNRE: No Advisory to Stop Finance for Renewables

New Delhi, Dec 7 (PTI) The Ministry of New & Renewable Energy on Sunday clarified that it has not issued any advisory to financial institutions to stop lending to renewable energy projects or to RE equipment manufacturing facilities.

This comes amid reports suggesting that the Ministry of New & Renewable Energy (MNRE) has issued an advisory to lenders to pause fresh financing to renewable energy projects amid significant overcapacity concerns, an MNRE statement said on Sunday.

"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," it said.

However, it stated that the MNRE has circulated to the Department of Financial Services and NBFCs like PFC, REC and IREDA, the status of present installed domestic manufacturing capacities across various sectors of solar PV manufacturing 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.

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, it stated.

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 Indian manufacturers, it said.

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, it added.

The ministry will continue engaging with stakeholders to ensure India's solar journey remains inclusive, competitive, and future ready, it stated.

India has already achieved 50 per cent 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 October 31, 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, it stated.