The Ministry of New and Renewable Energy’s (MNRE) recent advisory to banks and financial institutions, calling for prudence in lending to standalone solar module manufacturing, has been welcomed by the renewable energy sector. Stakeholders say capital should flow into parts of the renewable energy ecosystem that have remained underdeveloped. In an office memorandum, MNRE urged the Department of Financial Services to ensure that financing decisions “adopt a calibrated and well-informed approach” when lending to module manufacturing amid overcapacity.