New Delhi: India has achieved a significant clean energy milestone, reaching 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of its 2030 target set under the Paris Agreement’s Nationally Determined Contributions (NDCs). As of October 31, 2025, the total installed non-fossil capacity stands at approximately 259 GW, with 31.2 GW added in the current financial year up to that date.
The Ministry of New & Renewable Energy (MNRE) has, however, issued a clarification following reports that an advisory was issued to lenders to pause fresh financing for Renewable Energy (RE) projects amidst overcapacity concerns.
The Ministry categorically denied issuing any advisory to financial institutions to stop lending to either renewable energy power projects or RE equipment manufacturing facilities.
Instead, the MNRE has circulated a document to the Department of Financial Services and Non-Banking Financial Companies (NBFCs) like PFC, REC, and IREDA. This document provides the status of present installed domestic manufacturing capacities across the solar PV manufacturing value chain. The purpose is to enable financial institutions to adopt a “calibrated and well-informed approach” when evaluating financing proposals.
The Ministry’s guidance encourages lenders to expand their solar PV manufacturing portfolio to upstream stages such as solar cells, ingots-wafers, and polysilicon, as well as ancillary equipment like solar glass and aluminium frames. This is intended to prevent a singular focus on financing only solar PV module manufacturing facilities, where significant expansion has already occurred.
The Government of India remains committed to making India self-reliant in solar PV manufacturing and establishing the country as a major player in the global value chain. Initiatives like the PLI Scheme for High Efficiency Solar PV Modules and measures to provide a level playing field have been instrumental.
This policy support has spurred a massive expansion in solar module manufacturing capacity, rising from just 2.3 GW in 2014 to around 122 GW enlisted in the MNRE’s Approved List of Models and Manufacturers (ALMM) today. This rapid growth reinforces India’s commitment to achieving a total 500 GW of non-fossil fuel capacity by 2030 and contributing significantly to global decarbonization efforts. The MNRE affirmed its dedication to further strengthening the solar manufacturing ecosystem through continued policy support, infrastructure development, and innovation.