In a major shakeup for the solar power sector, the government has axed a key provision allowing duty-free imports for solar power generation. Starting December 17, solar modules brought into India will no longer benefit from the Manufacturing and Other Operations in Warehouse Regulations (MOOWR), which previously enabled businesses to import and store goods without immediate customs duty payments. The MOOWR scheme, introduced in 1996 and overhauled in 2019, allowed companies to operate customs-bonded warehouses, where imported goods could be processed, manufactured, or even exported—all without paying customs duty upfront. For solar modules, this meant avoiding a hefty 40% basic customs duty on modules and 25% on cells. But that’s history now, following the latest notification from the Central Board of Indirect Taxes and Customs (CBIC). For solar plants operating under Power Purchase Agreements (PPAs) that don’t account for tariff adjustments due to regulatory changes, the financial burden could be severe. These operators might see profitability dwindle as cash flows tighten and project costs escalate.