India has achieved a significant energy transition milestone, with over 50% of its installed electricity capacity now coming from non-fossil fuel sources, five years ahead of its Nationally Determined Contributions (NDC) commitment under the Paris Agreement.
According to official data, as of 31 October 2025, the country’s installed non-fossil fuel capacity stands at around 259 GW, including 31.2 GW added in the current financial year up to October.
Amid reports suggesting that the Ministry of New & Renewable Energy (MNRE) has instructed lenders to pause financing of renewable energy projects due to excess capacity concerns, the ministry has issued a clarification refuting the claims.
No Directive to Halt Financing, Says Government
MNRE stated that no advisory has been issued to banks, financial institutions, or NBFCs to stop funding renewable energy power projects or equipment manufacturing units.
The ministry clarified that it has only circulated updated information on existing domestic manufacturing capacities—covering modules, solar cells, ingots-wafers, polysilicon and ancillary components such as solar glass and aluminium frames—to bodies including the Department of Financial Services, PFC, REC, and IREDA. The intent, it stated, is to enable lenders to take informed financing decisions and encourage support for upstream solar value chain development rather than focusing solely on module manufacturing.
Government Reaffirms Support for Solar Manufacturing Ecosystem
The ministry reiterated the government’s continued commitment to strengthening domestic solar PV manufacturing with the goal of making India a key global player in the solar value chain. This strategy is supported through policy measures such as the PLI Scheme for High Efficiency Solar PV Modules and ongoing efforts to provide a competitive environment for manufacturers.
The ministry noted that India’s solar module manufacturing capacity has increased from 2.3 GW in 2014 to approximately 122 GW today as listed under the Approved List of Models and Manufacturers (ALMM). This growth, it said, highlights the success of coordinated efforts between the central government, state governments and industry stakeholders.
Advancing Toward 2030 Renewable Energy Goals
India remains committed to achieving its target of 500 GW of non-fossil energy capacity by 2030, further strengthening its role in global decarbonisation efforts.
MNRE emphasized that it will continue policy support, infrastructure expansion and proactive engagement with stakeholders to ensure India’s renewable energy sector remains resilient, competitive and future-ready.
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