The Ministry of New & Renewable Energy recently stated that there was no directive issued to halt new funding in the sector. Emphasizing the importance of strategic financial support within the solar manufacturing industry, the Ministry highlighted that such funding practices would foster sustainable growth.
Dismissing claims suggesting that financial institutions were advised to suspend lending to Renewable Energy Projects due to overcapacity concerns, the Ministry clarified its stance. There has been no official communication from the Ministry of New & Renewable Energy to lenders regarding a halt in financing for renewable energy projects or manufacturing facilities.
This clarification was prompted by reports from Reuters claiming that the Ministry had recommended caution in financing new solar module plants. However, the Ministry refuted these reports, asserting that no specific advisory had been issued to stakeholders in the industry.
Furthermore, the MNRE has shared information on the current domestic manufacturing capacities in solar PV manufacturing sectors with financial entities such as the Department of Financial Services and NBFCs like Power Finance Corporation and others. This data aims to enable financial institutions to approach financing decisions with a well-informed strategy.
The government anticipates that this informed approach will assist financial institutions in evaluating proposals for solar PV manufacturing facilities and expanding their involvement in upstream stages of solar production. These stages include solar cells, ingots, wafers, and polysilicon.
In conclusion, the Ministry reaffirmed the government’s commitment to bolstering India’s self-reliance in solar PV manufacturing and positioning the country as a key player in the global solar industry value chain.