HVAC leaders share tips with developers
Technology

HVAC leaders share tips with developers

Tagged a ‘sunrise’ sector, the HVAC&R industry is poised to grow eightfold in the next two decades, according to the India National Cooling Plan. Growing demand from the real-estate sector and the G...

Tagged a ‘sunrise’ sector, the HVAC&R industry is poised to grow eightfold in the next two decades, according to the India National Cooling Plan. Growing demand from the real-estate sector and the Government’s focus on domestic manufacturing to lower dependence on imports are behind this expansion. Production concerns Among the slew of measures introduced to spur domestic manufacturing, a production-linked incentive (PLI) scheme has shown early results, pushing the ratio of domestic value addition from 25 per cent to 45 per cent. However, Mihir Sanghavi, Managing Partner, Auro Group, National President, RATA, Vice President, ISHRAE, and Regional Communication Chair, ASHRAE Region XV, has concerns about this development. “Unlike many OEMs, MSMEs haven’t taken advantage of the PLI as the minimum ticket size [for those opting for the scheme] is Rs.1 billion,” he observes. “This may disrupt the equilibrium of industry where MSMEs contribute up to 46 per cent of GDP.” Sanghavi points out that “restricting imports by cancelling FTAs and implementing BIS will disrupt the industry’s supply chain.” Instead, he would have recommended “phase-wise implementation until India is self-reliant”. Vishal Kapur, Managing Director, MEHO-HCP Air Systems, and National Treasurer and Chair Contractor Forum, RATA, says the industry needs “low-cost funding, investments, infrastructure and a robust supply chain, especially for components, to work towards localised solutions and import substitution.” “Financial stability and low profitability owing to frequently escalating costs, competition pressures and working capital needs are real industry concerns, forcing teams to make wrong pricing decisions,” he adds. GST woes “There is an urgent need to establish parity between the GST rates applied to HVAC services and other sectors,” says Ajit Panicker, CEO, Nova HVAC Systems, Founder, Pureblu Technologies, and Immediate Past President, RATA. “HVAC service providers are charging 18 per cent GST but the department would have conflicting views of invoicing at 28 per cent, the same rate as HVACs themselves,” says Sanghavi. “It is high time this concern of dual taxation is addressed.” Skill shortages The HVAC industry is currently facing an urgent demand for 200,000 skilled technicians to manage installation and maintenance tasks, estimates Panicker. “If this shortage isn’t addressed, the industry’s projected eightfold growth over the next two decades is at risk,” he warns. “Eighty per cent of air conditioning inefficiency stems from inadequate installation, poor maintenance practices and substandard refrigerant management, underscoring the critical need for well-trained professionals,” continues Panicker. “With the phase-out of high global warming potential (GWP) refrigerants, the HVAC industry is increasingly focused on equipping professionals with the necessary skills to manage new refrigerants and advanced systems.” For instance, he highlights that using variable refrigerant flow systems, which modulate refrigerant flow to indoor units based on demand, can result in energy savings of up to 20 per cent compared to traditional HVAC systems. Additionally, smart maintenance platforms that monitor and manage maintenance activities ensure adherence to scheduled checks and enable prompt responses to any issues. Modern indoor air quality (IAQ) management now leverages cutting-edge, filter-less technology. “Vendors need to stay up to date with evolving regulations and standards, technological advancements like digitisation, decarbonisation processes and be ready to adapt to changing market demands,” adds Kapur. “Nowadays, digitisation plays an important role in system maintenance from remote monitoring, early alarms, equipment status and operations logs to indoor condition data.” He points out that while a lot is being attempted by the Government and industry, much more needs to be done collectively.

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