Banks tighten lending to India's solar module makers.

Banks tighten lending to India's solar module makers. India's solar module manufacturers face a credit crunch as banks grow cautious about financing new capacity. The clean energy ministry warned lenders in December about overcapacity risks, while a preliminary 126% US tariff threatens the sector's primary export market. Lenders are reducing loan-to-cost ratios and intensifying due diligence to avoid bad loans. With solar module makers mushrooming domestically while demand remains weak, banks now scrutinize promoter track records and project viability more closely. This consolidation mirrors patterns in other emerging sectors like electric vehicles, where only scaled players typically survive as industries mature.