The Ministry of New and Renewable Energy (MNRE) has issued a clear statement denying reports that it advised financial institutions to halt lending for renewable energy projects. This clarification comes amidst discussions in the industry regarding concerns over potential excess capacity in domestic solar module manufacturing.
Clarifying the Intent Behind Data Sharing
In an official statement released on Sunday, the ministry explained its actions. It stated that it merely shared the current status of India's domestic solar manufacturing capacity with key stakeholders. These stakeholders include the Department of Financial Services and major public sector lenders to the renewable sector, such as Power Finance Corporation (PFC), REC Limited, and the Indian Renewable Energy Development Agency (IREDA).
The ministry emphasized that the intent behind sharing this data was to enable these financial institutions to make "calibrated, well-informed" decisions. The goal is to guide a balanced evaluation of investment opportunities across the entire solar value chain, not to stifle funding.
India's Green Energy Milestone and Manufacturing Push
Highlighting a significant national achievement, MNRE pointed out that India has already met 50% of its installed electricity capacity from non-fossil fuel sources. This milestone was achieved a full five years ahead of the target set under its Nationally Determined Contributions (NDCs) for the Paris Agreement.
As of October 31, the country's total non-fossil fuel-based capacity stands impressively at 259 gigawatts (GW). A substantial 31.2 GW of this capacity was added in the current financial year alone, showcasing rapid growth.
The ministry stressed that financing focus should broaden. It should not be confined only to module manufacturing but must expand to include critical upstream segments. These include solar cells, ingots, wafers, and polysilicon, as well as essential ancillaries like solar glass and aluminium frames.
Policy Support for a Self-Reliant Solar Future
The government reiterated its firm commitment to establishing India as a self-reliant (Aatmanirbhar) powerhouse in solar photovoltaic (PV) manufacturing. This aims to strengthen the country's position within the global solar value chain.
This vision is being actively supported by schemes like the Production Linked Incentive (PLI) for high-efficiency solar modules. Thanks to such policy initiatives, India's domestic module manufacturing capacity has seen a meteoric rise. It has jumped from a mere 2.3 GW in 2014 to a listed capacity of 122 GW on the Approved List of Models and Manufacturers (ALMM).
The MNRE concluded by affirming its dedication to continuing robust policy support, infrastructure development, and stakeholder engagement. This multi-pronged approach is designed to ensure India's solar sector remains "inclusive, competitive and future-ready" for the challenges and opportunities ahead.
