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DPIIT Extends Hermetic Compressor Import Exemptions Until March 2027

The Department for Promotion of Industry and Internal Trade has extended conditional import exemptions for specified hermetic compressors until March 31, 2027. The exemptions allow manufacturers to import up to 40% of reciprocating compressors below 2 TR and up to 30% of rotary compressors below 2 TR. For higher-capacity applications, imports of up to 90% are permitted for scroll and rotary compressors of 2 TR and above, with 100% allowed for VRF systems. The move aims to ensure supply-chain continuity while promoting localisation and strengthening domestic manufacturing under India's quality control framework.

Key Points: DPIIT Extends Hermetic Compressor Import Exemptions Till 2027

  • Exemptions extended till March 31, 2027
  • Imports allowed up to 40% for reciprocating compressors below 2 TR
  • Up to 90% allowed for high-capacity scroll and rotary compressors
  • 100% import allowed for VRF system compressors
  • Manufacturers must submit monthly records and indigenisation roadmap
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DPIIT extends conditional import exemptions for hermetic compressors till March 2027

DPIIT extends conditional exemptions for importing hermetic compressors until March 2027, with limits based on FY25 volumes, to boost domestic manufacturing.

"The move is aimed at ensuring supply-chain continuity for domestic manufacturers while simultaneously encouraging localisation and strengthening domestic manufacturing capabilities under India's quality control framework. - DPIIT Notification"

New Delhi, May 8

The Department for Promotion of Industry and Internal Trade has extended conditional exemptions for the import of specified hermetic compressors used in air conditioning and refrigeration manufacturing till March 31, 2027, according to a notification issued by the Ministry of Commerce and Industry on Friday.

The amendment, notified through the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, allows manufacturers to continue importing certain categories of compressors for captive manufacturing purposes under prescribed limits linked to their FY25 import volumes.

Under the revised framework for FY27, manufacturers will be permitted to import up to 40 per cent of reciprocating hermetic compressors below 2 Ton of Refrigeration (TR) capacity used in refrigerators and similar appliances.

The notification also allows up to 30 per cent imports of rotary hermetic compressors below 2 TR capacity meant for air-conditioners and heat pumps.

For higher-capacity applications, the Union government has permitted imports of up to 90 per cent for scroll and rotary hermetic compressors of 2 TR and above used in refrigeration, air conditioning and heat pump equipment.

In the case of Variable Refrigerant Flow (VRF) air-conditioning systems, manufacturers will be allowed to import up to 100 per cent of rotary hermetic compressors of 2 TR and above.

The DPIIT has directed manufacturers availing the exemption to maintain monthly import records and submit the details to the concerned authorities along with a phased indigenisation roadmap to the Central government.

The amendment has come into force with immediate effect following its publication in the Official Gazette.

The move is aimed at ensuring supply-chain continuity for domestic manufacturers while simultaneously encouraging localisation and strengthening domestic manufacturing capabilities under India's quality control framework.

- IANS

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Reader Comments

S
Sarah B
Interesting to see India's phased approach. 100% import for VRF compressors makes sense as these are specialised tech. But will the 30% and 40% limits for smaller compressors actually push Indian companies to invest in local production, or just create a paperwork burden?
V
Vikram M
As someone working in AC manufacturing, this is a pragmatic decision. The phased indigenisation roadmap requirement is key - companies can't just keep importing forever. The government should monitor this closely to avoid exploitation though. Let's hope Make in India actually benefits from this.
E
Emma D
The monthly record-keeping requirement seems bureaucratic. Why not focus on outcome-based targets instead? Also, are we confident Indian manufacturers can produce compressors matching global quality standards by 2027? Need to see the actual indigenisation plans first.
P
Priya S
Finally! This is the kind of nuanced policy India needs. Not a complete ban on imports, but a carefully calibrated system to balance local production and consumer needs. The 90% for high-capacity compressors is practical as we don't have that tech yet in India. Good move DPIIT! 🇮🇳
R
Rohit P
Question is - will this actually lead to price stability for consumers? Or will companies pass on the costs of indigenisation to us? Also, the 40% cap on fridge compressors might not be enough if demand spikes in summer. Could have kept it flexible for emergency scenarios.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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