The Department for Promotion of Industry and Internal Trade (DPIIT) has extended conditional exemptions for the import of specified hermetic compressors used in air conditioning and refrigeration manufacturing until March 31, 2027. The Ministry of Commerce and Industry issued a notification regarding this amendment. Manufacturers are now allowed to import certain categories of compressors for captive manufacturing purposes under prescribed limits linked to their FY25 import volumes.
Under the revised framework for FY27, manufacturers can import up to 40% of reciprocating hermetic compressors below 2 Ton of Refrigeration (TR) capacity used in refrigerators and similar appliances. Additionally, up to 30% imports of rotary hermetic compressors below 2 TR capacity meant for air-conditioners and heat pumps are permitted.
For higher-capacity applications, the Union government has approved imports of up to 90% for scroll and rotary hermetic compressors of 2 TR and above used in refrigeration, air conditioning, and heat pump equipment. Manufacturers of Variable Refrigerant Flow (VRF) air-conditioning systems can import up to 100% of rotary hermetic compressors of 2 TR and above.
Manufacturers availing the exemption are directed by DPIIT to maintain monthly import records and submit details to the concerned authorities along with a phased indigenisation roadmap to the Central government. The amendment, effective immediately upon publication in the Official Gazette, aims to ensure supply-chain continuity for domestic manufacturers, promote localisation, and enhance domestic manufacturing capabilities under India’s quality control framework.
