India has already reached 50 per cent of its total electrical generating capacity from non fossil fuel sources five years ahead of schedule as per its Nationally Determined Contributions obligations under the Paris Agreement. As per the press note issued by the Ministry of New and Renewable Energy, as on October 31, 2025, the cumulative installation based on non-fossil fuel sources is approximately 259 GW, and 31.2 GW have been added so far in the ongoing fiscal year.
It is being reported at various instances that the Ministry of New and Renewable Energy (MNRE) has advised lenders to hold back new loans to projects based on renewable energy due to serious instances of overcapacity. It is made clear that there is no advisory issued by MNRE to Financial Institutions regarding halting loans for either renewable energy-based power projects or production facilities for renewable energy equipment.
However, MNRE, has given status information on existing manufactured capacities within various sectors of solar PV manufacturing, namely solar modules and upstream sectors including solar cells, ingots-wafers, polysilicon, as well as solar module ancillaries including solar glasses and aluminum frames, etc. to DFS and NBFCs, like PFC, REC, and IREDA, so that they can have a calibrated and well-informed approach while examining proposals on financing any unit on solar PV manufacturing sector and enable and expand their solar PV manufacturing domain into upstream sectors including solar cells, ingots-wafers, and polysilicon as well as solar module ancillaries including solar glasses and aluminum frames, etc. and not be limited within solar PV module manufacturing facilities alone.
It appears that the Government of India also aims for India to be self-reliant and a prominent player within the global value chain for solar PV. The commitment made by the government is enabled with a holistic package of initiatives, including PLI Scheme for High-Efficiency Solar PV Modules and ensuring that there be a level-playing field for the Indian manufacturers. The catalytic impact of these efforts has caused an increase in solar module production capacity, from 2.3 GW in 2014 to approximately 122 GW listed under MNRE’s Approved List of Models and Manufacturers (ALMM) presently.
It highlights and underlines the success story India has achieved in solar PV manufacturing, and at the same time, it reiterates India’s commitment towards realizing 500 GW of non-fossil fuel capacity by 2030 and making a meaningful contribution towards global de-carbonization efforts. The MNRE continues to be committed to making the solar manufacturing sector more robust. It will continue to engage with stakeholders so that India’s solar experience remains inclusive and competitive.
