The central government has extended Quality Control Order (QCO)-related import exemptions for several compressor categories used in air-conditioners, refrigerators and heat pumps, giving manufacturers additional time to strengthen domestic production capabilities while ensuring uninterrupted supplies, as per news reports.
According to the latest notification, manufacturers of air-conditioning and refrigeration equipment will continue to receive limited import exemptions for specified compressor categories until March 31, 2027.
The decision is aimed at helping appliance makers gradually localise manufacturing without disrupting production amid tighter quality standards.
Industry participants had raised concerns regarding supply shortages and rising compliance pressure under the QCO framework, particularly for advanced compressor technologies where domestic production remains limited.
The government has therefore permitted higher import relaxations for specialised and high-capacity cooling systems that currently lack sufficient local manufacturing capacity.
The revised framework allows companies to import compressors for captive use without full quality-control restrictions, subject to limits linked to their import volumes during FY25.
For small reciprocating compressors used in refrigerators, imports will be allowed up to 40% of previous import volumes. Small rotary compressors used in air-conditioners and heat pumps will be permitted up to 30%.
Larger scroll and rotary compressors will receive significantly higher relief with import allowances of up to 90%. Meanwhile, large rotary compressors used in Variable Refrigerant Flow (VRF) systems will continue to enjoy full import flexibility of up to 100%.
The extension is expected to support air-conditioner, refrigeration and consumer durable manufacturers ahead of peak summer demand when cooling appliance sales typically increase sharply.
The notification also requires manufacturers to maintain monthly records of imported products and submit indigenisation plans outlining efforts to expand local manufacturing capabilities over time.
The move reflects the government’s attempt to balance domestic manufacturing goals with immediate industry supply requirements as India’s cooling appliance market continues to expand.
The extended import relaxation is likely to provide short-term operational relief to appliance manufacturers while giving the industry more time to build local capacity for advanced compressor technologies in India.
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Published on: May 11, 2026, 10:51 AM IST
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