Mumbai: The Union Ministry of New and Renewable Energy (MNRE) has clarified that it has not issued any advisory asking banks or financial institutions to stop lending to renewable energy power projects or green equipment manufacturing units. The ministry said recent media reports suggesting a lending freeze are incorrect. It stressed that there is no direction to pause funding for clean energy projects.
Why Information Was Shared With Lenders
While denying any lending restrictions, MNRE said it had shared detailed data with the Department of Financial Services and NBFCs such as PFC, REC and IREDA. This information included the current domestic manufacturing capacity across different parts of the solar PV manufacturing chain, including solar modules, cells, ingots, wafers, polysilicon, solar glass and aluminium frames.
The ministry explained that this was done to help financial institutions take more balanced and informed decisions while evaluating loan proposals. It also encouraged lenders to look beyond only solar module units and support investments in upstream manufacturing and supporting equipment.
Strong Push to Make India a Solar Manufacturing Hub
The government said it remains fully committed to making India self-reliant in solar manufacturing and turning the country into a global hub. It highlighted key schemes such as the Production Linked Incentive (PLI) Scheme for high-efficiency solar modules and steps to create a level playing field for Indian manufacturers.
According to the ministry, these policy measures have led to a massive jump in solar module manufacturing capacity in India, from just 2.3 GW in 2014 to about 122 GW today, as listed under MNRE’s Approved List of Models and Manufacturers (ALMM).
India’s Clean Energy Journey Gaining Speed
The MNRE said this rapid expansion shows the success of India’s solar manufacturing journey, driven by combined efforts from industry, state governments and the Centre. The country is firmly moving towards its target of achieving 500 GW of non-fossil fuel capacity by 2030 and contributing to global efforts to cut carbon emissions.
India has already achieved 50 percent of its installed electricity capacity from non-fossil fuel sources, five years ahead of its Paris Agreement commitment.
Current Capacity Status
As of 31 October 2025, India’s installed non-fossil fuel capacity stood at around 259 GW. During the current financial year till October, about 31.2 GW of new green capacity was added, showing strong momentum in the renewable energy sector.
