AC manufacturers commit to export 50% of sales

26 Feb 2021 CW Staff

The association also said that the segment might increase domestic value addition in room ACs to 75%, from the current 25%.

The industry's commitment to the NITI Aayog and the Department for Promotion of Industry and Internal Trade (DPIIT) comes in the wake of the government's production linked incentive (PLI) scheme.

As we reported earlier, the announcement for this sector was made in November, with an outlay of Rs 6,238 crore for white goods—which comprise ACs and light emitting diodes (LEDs). The government is finalising the final modalities of the scheme after its meetings with stakeholders.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

As part of the announcement, the Centre has earmarked over Rs 1.46 trillion for ten sectors under the scheme. The government has noted that its aim for the AC industry is two pronged:

To have a very high potential of domestic value addition and to make these products globally competitive. It says the PLI scheme for this segment will lead to more domestic manufacturing and increase exports.

Currently, India has only 0.5% of the global export market of room ACs, in terms of volume. This could go up to 10% by 2025 if the PLI scheme takes off. While 75% of the world's room AC manufacturing takes place in China, 75% of the global demand is also met by China and Thailand.

India imports 30% of the total value of sales of finished ACs from China. A striking contrast can be noted by the fact that China produced over 100 million room ACs in 2019, while India made a mere 7 million in the same year.

The industry got much less than what it had asked the nodal ministry as outlay under the PLI scheme of Rs 20,000 crore. Now it has to share a smaller outlay with LED manufacturers as well.

Image: Under the PLI scheme, the approved financial outlay is for a period of five years.

Also read: Blue Star to intensify commercial refrigeration ops

Also read: Moving out of China? India among best alternatives

The Refrigeration and Air Conditioning Manufacturers Association of India (RAMA) has committed to the government an export target of 50% of its sales of over Rs 1 trillion in the next five years from air conditioners (ACs). The association also said that the segment might increase domestic value addition in room ACs to 75%, from the current 25%. The industry's commitment to the NITI Aayog and the Department for Promotion of Industry and Internal Trade (DPIIT) comes in the wake of the government's production linked incentive (PLI) scheme. As we reported earlier, the announcement for this sector was made in November, with an outlay of Rs 6,238 crore for white goods—which comprise ACs and light emitting diodes (LEDs). The government is finalising the final modalities of the scheme after its meetings with stakeholders.4th Indian Cement Review Conference 202117-18 March Click for event info As part of the announcement, the Centre has earmarked over Rs 1.46 trillion for ten sectors under the scheme. The government has noted that its aim for the AC industry is two pronged: To have a very high potential of domestic value addition and to make these products globally competitive. It says the PLI scheme for this segment will lead to more domestic manufacturing and increase exports. Currently, India has only 0.5% of the global export market of room ACs, in terms of volume. This could go up to 10% by 2025 if the PLI scheme takes off. While 75% of the world's room AC manufacturing takes place in China, 75% of the global demand is also met by China and Thailand. India imports 30% of the total value of sales of finished ACs from China. A striking contrast can be noted by the fact that China produced over 100 million room ACs in 2019, while India made a mere 7 million in the same year. The industry got much less than what it had asked the nodal ministry as outlay under the PLI scheme of Rs 20,000 crore. Now it has to share a smaller outlay with LED manufacturers as well. Image: Under the PLI scheme, the approved financial outlay is for a period of five years.Also read: Blue Star to intensify commercial refrigeration ops Also read: Moving out of China? India among best alternatives

Infrastructure Transport

18 Dec 2025

RVNL secures Rs 1.65 billion railway bridge project from North Eastern Railway

Rail Vikas Nigam (RVNL) has received a Letter of Award (LoA) from North Eastern Railway for a Rs 1.65 billion railway infrastructure project, strengthening its order book and showcasing its expertise in complex railway construction.The project involves constructing the substructure of a major railway bridge over the Gandak River, located between Paniyahwa and Valmikinagar stations. This is part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section, aimed at improving line capacity and operational efficiency.The bridge will feature 14 spans of 61 metres each, built on double D-t..

Infrastructure Transport

18 Dec 2025

Raebareli’s Modern Coach Factory rolls out 15,000th railway coach

The Modern Coach Factory (MCF) at Raebareli in Uttar Pradesh has achieved a major manufacturing milestone with the rollout of its 15,000th railway coach on December 15, the Ministry of Railways said.In a press note, the ministry said that MCF has already produced 1,310 coaches in the current financial year 2025–26, reflecting sustained high output at one of Indian Railways’ most advanced passenger coach manufacturing units.Established in 2007 at Lalganj in Raebareli district, MCF was built at a cost of Rs 31.92 billion with an initial annual production capacity of 1,000 coaches. The factor..

Infrastructure Transport

18 Dec 2025

RailTel wins Rs 260.88 million IT infrastructure order from VOC Port

Navratna public sector undertaking RailTel Corporation of India has secured an IT infrastructure order worth Rs 260.88 million from V.O. Chidambaranar Port Authority (VOC Port), strengthening its presence in port-led digital transformation projects.According to an exchange filing dated December 16, 2025, RailTel has received a Letter of Acceptance (LoA) from VOC Port Authority for the implementation of advanced IT infrastructure at the port. The project is domestic in nature and is scheduled to be completed by August 15, 2026.The company said the order has been awarded in the normal course of ..