The Ministry of New and Renewable Energy (MNRE) on Sunday rejected reports that it had asked lenders to stop financing for renewable energy projects, and said no such advisory has been issued to financial institutions, PTI reported.In a statement, the ministry said it has not instructed banks or other lenders to stop lending to renewable energy projects or renewable energy equipment manufacturing facilities. “It is clarified that MNRE has not issued any advisory to financial institutions to stop lending to renewable energy power projects or renewable energy equipment manufacturing facilities,” it said.The clarification comes amid media reports claiming the ministry has cautioned lenders against new financing due to concerns over overcapacity in the sector.MNRE said it has shared information on the current status of domestic manufacturing capacity in the solar photovoltaic (PV) segment only with the Department of Financial Services and non-banking financial companies like PFC, REC and IREDA. It said, its objective is to help financial institutions adopt a considered and informed approach while evaluating proposals for financing solar PV manufacturing facilities.The ministry reiterated that the government is committed to making India self-reliant in solar PV manufacturing and establishing the country as an important player in the global value chain. This incentive is being supported through initiatives such as the Production-Linked Incentive (PLI) Scheme for high-efficiency solar PV modules and measures to provide a level playing field for domestic manufacturers.The ministry said these interventions have led to a sharp expansion in solar module manufacturing capacity, which has increased from 2.3 GW in 2014 to about 122 GW in MNRE’s approved models and manufacturers (ALMM) list.MNRE said it will continue to engage with stakeholders to ensure that India’s renewable energy transition remains inclusive, competitive and future-ready.The statement said India has achieved 50 per cent of its installed power capacity from non-fossil fuel sources, five years ahead of the target set under its Nationally Determined Contribution to the Paris Agreement. By October 31, 2025, the installed non-fossil capacity was about 259 GW, with 31.2 GW added so far in the current financial year.
