The government has reportedly exempted certain critical air-conditioner and refrigerator components from mandatory Bureau of Indian Standards (BIS) certification. According to a report in Economic Times, the exemption from BIS certification is aimed to prevent an acute shortage as India braces for a harsh summer. The Department for Promotion of Industry and Internal Trade (DPIIT) has reportedly lifted the BIS certification of factory requirement for Grooved Copper Tubes and AC compressors of 2 tonnes and above capacity. The exemption also includes those imported from China, as asked by the industry.
“We expect a BIS waiver for refrigerator compressors and those used in ACs with below two-tonne capacity,” an industry executive told ET. “The AC compressor BIS waiver is immediately required since local capacities are still just 40-45% of the demand, while the situation is better for refrigerator compressors as some companies like LG, Godrej and Samsung manufactures them locally.”
Why ‘BIS’ exemption is good news for AC buyers
The exemption is good news for AC buyers as the shortage of key components would have hampered production of ACs and refrigerators in turn raising their prices. For buyers, the exemptions promise continued availability and affordability of cooling appliances as demand peaks.
As the report says, the government decision comes after AC and refrigerator manufacturers in the country had flagged possibilities of acute shortage of products this summer due to non-BIS certification of their copper and compressor vendors in China and nearby countries.
The exemptions address a critical gap in local manufacturing capacity, which meets only 40-45% of AC compressor demand and struggles to keep pace with rising needs amid an early summer onset. A leading AC brand’s CEO, speaking anonymously, noted that domestic copper tube prices far exceed those from Chinese vendors, making the BIS waiver a “breather” for the industry.
BIS exemption averts potential disruption for AC manufacturers
DPIIT also permitted imports of copper tubes up to 25% of last year’s total value between January and March. While smaller AC compressors (below 2 tonnes) and refrigerator compressors await similar relief, three senior industry executives anticipate an imminent government notification expanding the exemptions.
The move follows pleas from manufacturers, including Amber Enterprises, which flagged potential production disruptions in April due to component shortages. Industry bodies have reportedly long pushed for BIS waivers until domestic capacity improves, especially as BIS approvals for key Chinese suppliers like Wanbao Group and Highly Group’s plants lapse in 2024, reducing certified vendors from eight to two. Without renewals, supply chains could tighten further.
