India does not advise to stop funding clean energy

The Indian Ministry of Clean Energy said on Sunday that it has not issued an advisory to stop or pause new financing in the sector.

Clarification came after

reported

On Friday, the Ministry of Finance urged lenders to be cautious in their financing of new solar modules plants due to a surplus supply.

Solar manufacturers across the country were rattled by the letter from the clean energy ministry. Many expressed concern that it could cause a financial squeeze on the entire industry.

The Ministry of New and Renewable Energy announced on Sunday that it had requested the Finance Ministry to advise lenders adopting a "calibrated and informed approach" when evaluating requests for additional standalone photovoltaic modules capacity. Citing oversupply risk, the ministry stated they asked the finance minister to give advice to lenders. The advisory did not aim to stop all funding in the clean energy sector.

Solex Energy's chairman and managing director, Chetan Sha, said that if this caution is applied to all solar cells, it could be detrimental.

He said that limiting financing would disrupt projects in progress and increase reliance on imported cell imports.

In recent years, several Indian firms have increased module production to increase exports. The higher American tariffs on Chinese components and the tighter inspection of Indian shipments have hurt exports. This has raised fears about a surplus at home.

According to the Ministry of Clean Energy, India's module production is expected to increase by a third in the next couple of years to 200 gigawatts. Cell output could also quadruple, reaching 100 GW.

It said that the ministry was committed to strengthening solar manufacturing by providing policy support and developing infrastructure. Reporting by Sethuraman N R from Delhi and Jayshree Upadhyay from Mumbai; editing by Thomas Derpinghaus

(source: Reuters)