The Centre is examining concerns over the alleged misuse of the Manufacture and Other Operations in Warehouse Regulations (MOOWR) route by battery energy storage system (BESS) developers to defer customs duties on imported battery systems for up to 10-12 years, amid fears that the mechanism could distort India’s rapidly expanding storage market, weaken domestic manufacturing and defer customs liabilities running into several thousand crore rupees. The issue assumes significance as India aggressively scales up battery storage deployment to support renewable energy integration and rising evening peak electricity demand, with more than 43 GWh of viability gap funding-backed BESS capacity already announced.