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Dated: 09.05.2026

DPIIT Amends Quality Control Regulations for Air Conditioner Compressor Parts: New Exemptions and Indigenisation Requirements for Manufacturers

The Government of India has issued a significant amendment to the regulations governing the import and indigenous production of air conditioner compressor parts. This move, under the Bureau of Indian Standards Act, 2016, aims to balance quality control, support domestic manufacturing, and ensure a smooth transition for manufacturers.

Key Highlights of the Amendment

1. Order Title and Enforcement
   • The amendment is officially called the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026.
   • It comes into force from the date of its publication in the Official Gazette.
2. Exemptions for Manufacturers
   • The order introduces new provisos exempting certain compressor parts from quality control requirements for manufacturers importing them for their own production, until 31st March 2027.
   • These exemptions are subject to specific volume limits based on imports during the financial year 2024–25.
3. Volume Limits for Imports (2026–27)
   • The amendment specifies the following limits for different types of compressors:
     1. Reciprocating hermetic compressors (<2 tons, refrigerators): Up to 40% of 2024–25 import volume.
     2. Rotary hermetic compressors (<2 tons, air conditioners/heat pumps): Up to 30% of 2024–25 import volume.
     3. Scroll and rotary hermetic compressors (≥2 tons, refrigeration/AC/heat pumps): Up to 90% of 2024–25 import volume.
     4. Rotary hermetic compressors (≥2 tons, VRF AC systems): Up to 100% of 2024–25 import volume.
4. Record-Keeping and Indigenisation Plan
   • Manufacturers must maintain monthly records of the exempted goods and submit them to authorities, signed by an authorised signatory.
   • A plan for indigenisation (local production) of these goods must also be submitted to the Central Government.

Rationale and Impact

• Public Interest: The amendment is designed to serve public interest by ensuring manufacturers have access to necessary parts while transitioning to domestic production.
• Support for Domestic Industry: By requiring indigenisation plans, the government encourages manufacturers to gradually shift towards local sourcing and production.
• Regulatory Continuity: The amendment builds on previous orders, ensuring regulatory clarity and continuity for stakeholders.

Historical Context

The principal order was first published in December 2019 and has undergone several amendments to adapt to industry needs and technological advancements. The latest amendment reflects ongoing efforts to balance import flexibility with the push for domestic manufacturing.

Compliance Requirements

• Manufacturers must strictly adhere to the specified import volume limits.
• Monthly records and indigenisation plans are mandatory for compliance.

Conclusion

This amendment represents a strategic step by the Indian government to regulate the import and production of air conditioner compressor parts, supporting both quality standards and the growth of indigenous manufacturing. Manufacturers should ensure compliance with the new requirements and actively participate in the indigenisation process.

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Source: DPIIT

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