MNRE reaffirms push to strengthen India’s position in the global solar value chain

India has reached a major clean-energy milestone by achieving 50 per cent of its installed electricity capacity from non-fossil fuel sources—five years ahead of the deadline set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. As of 31 October 2025, the country’s non-fossil capacity stands at about 259 GW, with 31.2 GW added during the current financial year up to October.

MNRE denies reports of advisory to pause renewable energy financing

The Ministry of New & Renewable Energy (MNRE) clarified that it has not issued any advisory directing financial institutions to halt or pause fresh lending to renewable energy projects or renewable-energy equipment manufacturing facilities.

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The Ministry noted that some reports had incorrectly suggested that lenders were being asked to reconsider their exposure to the sector due to concerns over overcapacity. MNRE emphasised that no such instructions have been issued.

Circulation of manufacturing capacity data to lenders

According to MNRE, it has shared detailed information on domestic solar PV manufacturing capacities with the Department of Financial Services and major financial institutions, including PFC, REC, and IREDA. This data covers various stages of the solar manufacturing value chain—solar modules, solar cells, ingots and wafers, polysilicon, and ancillary components such as solar glass and aluminium frames.

The objective, the Ministry said, is to enable lenders to adopt a calibrated, well-informed approach when evaluating new financing proposals. MNRE encouraged financial institutions to broaden their support to upstream manufacturing segments rather than focusing predominantly on module manufacturing.

India’s solar manufacturing capacity expands sharply

The Government reiterated its commitment to making India self-reliant in solar PV manufacturing and positioning the country as a major global player. Support measures involve PLI for high-efficiency solar photovoltaic (PV) modules and initiatives to promote an equal playing ground for domestic manufacturers.

These interventions have led to rapid growth in India’s manufacturing ecosystem: solar module capacity has expanded from 2.3 GW in 2014 to about 122 GW currently listed under MNRE’s Approved List of Models and Manufacturers (ALMM).

MNRE said this progress highlights the collective efforts of industry stakeholders, State Governments, and the Central Government, and strengthens India’s pathway toward achieving 500 GW of non-fossil fuel capacity by 2030. The Ministry reaffirmed its commitment to supporting infrastructure development, innovation, and stakeholder engagement to ensure that India’s solar sector remains competitive, future-ready, and globally significant.