The Ministry of New and Renewable Energy on Sunday (December 7) clarified it has not asked lenders to stop financing new solar projects. This came after a Reuters report said the Ministry urged a slow approach to funding new solar module plants due to supply outpacing demand. The Ministry said it requested the Finance Ministry to advise banks to take a "calibrated and well-informed approach" when assessing new standalone solar photovoltaic module capacity proposals. This was meant to manage oversupply risks and not to halt funding for the clean energy sector. Chetan Shah, chairman and managing director of Solex Energy, said, "This broad-based caution, if applied without distinction, could hurt solar cell manufacturing." He warned that "restricting financing now will disrupt under-construction projects and deepen reliance on imported cells." In recent years, many companies increased module production betting on exports to the U.S. However, higher U.S. tariffs and tighter checks on Indian shipments containing Chinese parts have hit these exports. This has raised fears of excess supply in India. India’s solar module capacity is expected to grow by one-third to 200 gigawatts (GW) soon. The output of solar cells could quadruple to 100 GW, the Ministry said. The Ministry remains committed to boosting solar manufacturing with policy support and infrastructure development, it confirmed on Sunday.