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MNRE Clarifies: No Instructions Issued to Halt Financing for New Renewable Energy Projects

The Ministry of New and Renewable Energy (MNRE) has clarified that it has not asked financial institutions to stop providing loans for renewable energy power projects or for setting up manufacturing facilities in the clean-energy sector. The statement follows reports suggesting that the ministry had advised lenders to pause fresh funding due to concerns over potential overcapacity.

According to MNRE, these reports are incorrect. The ministry stated that some platforms had misrepresented its communication, prompting the need for an official clarification.

As of October 31, 2025, India’s non-fossil fuel capacity has reached 259 GW, with 31.2 GW added during the current financial year up to October.

Earlier, as reported by Energetica India, MNRE had shared updated information with the Department of Financial Services and major NBFCs such as PFC, REC, and IREDA regarding India’s current domestic manufacturing capabilities across the solar value chain. This includes modules, solar cells, ingots, wafers, polysilicon, and crucial components such as solar glass and aluminium frames.

The intent behind sharing this data is to encourage lenders to adopt a more calibrated and well-informed approach when assessing financing proposals in the solar manufacturing sector. MNRE has urged institutions to extend their support to upstream manufacturing—such as solar cells, wafers, ingots, and polysilicon—instead of focusing predominantly on module manufacturing alone.

The Government of India remains committed to expanding domestic solar manufacturing and positioning India as a major global player in the renewable energy supply chain. This vision is supported by initiatives like the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules and various measures that strengthen the competitiveness of Indian manufacturers.

These policy interventions have significantly expanded the country’s solar module manufacturing capacity—from 2.3 GW in 2014 to approximately 122 GW now listed under MNRE’s Approved List of Models and Manufacturers (ALMM).

MNRE reiterated that it will continue to support the sector through sustained policy measures, infrastructure development, and technological innovation. The ministry also affirmed that it will keep engaging with industry stakeholders to ensure India’s solar growth remains resilient, inclusive, and future-ready.