Energetica india Magazine

FEATURE STORY energetica INDIA- February_2026 54 Funding Realignment: A Strategic Shift? In a memorandum, MNRE urged the Department of Finan - cial Services (DFS) to issue appropriate guidance to banks, NBFCs, and renewable-energy lenders such as PFC, REC and IREDA to align lending decisions with market realities and long-term sectoral trends to ensure financial sustainabil - ity. It has recommended that banks and non-banking lenders prioritise financing integrated manufacturing projects and upstream segments such as polysilicon, ingots, wafers, and critical ancillaries like solar glass, rather than focusing on standalone solar module and cells projects. “This represents a structurally positive shift in policy direc - tion. The emphasis on upstream segments, which are signifi - cantly more capital-intensive, technologically complex, and execution-heavy, is likely to ensure that only well-capitalised and technically capable players undertake such investments, thereby improving overall industry quality and sustainabili - ty,” remarked Arya. He further added, “Over the medium term, this shift in fi - nancing is expected to reshape India’s solar manufacturing ecosystem towards deeper vertical integration, enhancing supply-chain resilience, reducing geopolitical and import de - pendence risks, and improving cost competitiveness.” Chanana voiced that this policy direction is likely to strength - en the sector structurally over the medium term. “Increased focus on upstream segments such as wafers and ingots will help India move from assembly-led manufacturing to deep - er technology participation. Developing domestic upstream capacity can reduce exposure to global price volatility and geopolitical supply disruptions. Furthermore, more selective financing is expected to encourage long-term, committed in - vestments, leading to a more resilient and sustainable manu - facturing ecosystem,” he said. Thadani added, “By ensuring steady investment in the raw materials segment, manufacturers of modules and cells will have access to high-quality inputs, which improves efficiency and product reliability. In the medium term, this approach is likely to make the industry more resilient and competitive globally. It encourages a balanced growth across the entire value chain, supports innovation, and provides confidence for both manufacturers and project developers to plan and scale sustainably.”