Government is likely to relax Bureau of Indian Standards (BIS) norms on import of AC compressors, reported CNBC-Awaaz citing sources.
The relaxation is likely for AC compressors with capacity less than 2 tonnes, the channel reported on April 22.
Grooved AC copper tubes are also likely to get import relaxations. The channel reported that government wants to ensure demand in heat wave gets met.
According to available data, 90% of the AC sales volumes are for models that are two tonnes or less.
Shares of AC companies Blue Star and Voltas were trading 2% higher at Rs 2,082 and Rs 1,346 apiece, respectively.
On March 31, the India Meteorological Department (IMD) said that India is expected to experience hotter-than-usual temperatures from April to June, with more heatwave days in central and eastern India and the northwestern plains.
Most parts of the country will see higher-than-normal maximum temperatures, except for some areas in western and eastern India where the temperatures are expected to be normal.
IMD chief Mrutyunjay Mohapatra said in an online press conference. "From April to June, most parts of north and east India, central India, and the plains of northwest India are expected to experience two to four more heatwave days than normal."
The room AC industry is still dependent on imports of crucial components such as compressors, PCBs, and fan motors, mainly from China, and is anxiously looking at the tariff standoff triggered by the Trump administration, reported PTI earlier this month.
The Indian room air-conditioner market is one of the fastest-growing markets globally, in which over 12-15 companies compete. The market is estimated to be around 15 million units.
In the current season, the number of sales and enquiries for heavy-duty air conditioners with high tonnage capacity and copper condensers guaranteeing improved longevity and heat transfer are on the rise.
RAC units with higher energy efficiency and heavy duty are in demand as customers are also looking for powerful cooling solutions for extreme temperatures in summers like last year, besides saving on electricity costs while purchasing.
With inputs from PTI
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