BEE's new star ratings to push AC prices up 10 pc, refrigerators by 5 pc from Jan
New Delhi (PTI): Prices of cooling appliances such as room air conditioners and refrigerators may go up 5-10 per cent from January 1, 2026, as the new revised star rating from the Bureau of Energy Efficiency (BEE) comes into force.
This hike, which will be applicable from January 1, 2026, will almost offset the price advantage which the consumers have got from the GST reforms in September this year on room air-conditioners (RAC), where duty was slashed 10 per cent.
Besides the fall of the Indian rupee against the US dollar and global increase of copper prices is also putting pressure on manufacturers' margins.
Despite this, leading manufacturers such as Voltas, Daikin, Blue Star, and Godrej Appliances are unfazed and expect this to help to keep the carbon footprints lower.
The new 5-star AC under the new revised BEE norms is 10 per cent more energy efficient; however, it will also increase the prices by around 10 per cent, said Blue Star Managing Director B Thiagarajan.
"New 5-star is a new product itself, which in today's context, will be equivalent to 6 or 7-star. That new product, which will be introduced, has a price difference of around 10 per cent," he said.
After January 1, 2026, a 5-star of 2025 rating will be downgraded as 4-star. Similarly, a current 4-star as a 3-star and a current 3-star will be 2 star, with a price difference of 5 per cent.
Expressing a similar opinion, Godrej Enterprises Group Business Head & EVP at Appliances Business Kamal Nandi said the durables industry is getting affected by currency depreciation as well as adverse commodity costs and scheduled energy regime changeover from January, which cumulatively will lead to a significant cost increase in cooling categories, with RACs being most impacted.
"In the immediate context, energy regime changeover-linked price hike to the tune of 5-7 per cent for ACs and 3-5 per cent for refrigerators looks likely," said Nandi.
Voltas Senior Business Leader Jayant Balan said India's cooling industry is entering a transformative phase with the upcoming BEE star rating revision effective January 2026.
"These policy shifts are accelerating demand, as trade partners and consumers move early to secure current pricing and mitigate the average expected increase of 7-8 per cent on new inventory, noting that actual changes may differ based on specifications and product categories," he said.
Balan added that consumer behaviour is evolving rapidly in this environment.
Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa said from 2012 to 2024, this is the fifth time that energy labelling standards are going up.
"This industry has been supportive to the government for energy efficiency, which is a big challenge for the country. So, ever since they have taken this into sunrise, we all have been very supportive of these movements," he said.
The AC industry got GST benefits and had also seen an increase in sales. However, the industry is also committed towards sustainability as when the demand goes up, it is also required to balance the energy efficiency.
"Prices will definitely go up, not only because the BEE labelling standards are going up, but copper also has gone up, the raw material cost has been going up, the dollar against the rupee has depreciated," he said.
Asked whether the RAC prices will return to pre-GST reforms time, Jawa said, "It will be around that".
Besides, BEE has also made star-labelling mandatory on a host of appliances, including televisions, LPG gas stoves, cooling towers, and chillers from January 1. This will help customers make an informed choice and ensure standardisation.
It has put energy efficiency norms for air-conditioners stricter, with new requirements to achieve the highest 5-star rating. To meet the new norms, manufacturers are using more expensive components to meet the higher standards, leading to a price increase.
This also means 5-star rated RAC in 2025 are now rated lower as 4-star under the new system.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
791 drone intrusions along IB reported in 2025: Defence Ministry
New Delhi (PTI): A total of 791 drone intrusions -- nine incidents along the International Border in Jammu and Kashmir and 782 along IB in Punjab and Rajasthan -- were reported during 2025, the defence ministry said on Wednesday.
"Effective employment of own spoofers and jammers along the western front significantly countered the drone threat," it said.
During this period, 237 drones were brought down by the Indian forces along IB sector -- "five drones with war-like stores, 72 drones with narcotics and 161 drones without any payload", the ministry said in a year-end review statement.
"A total of 791 drone intrusions (nine incidents along IB in J&K and 782 along IB in Punjab/Rajasthan) were reported during this year," it said.
The ministry said the security situation in J&K remains "firmly under control" due to the relentless efforts of the Indian Army.
People have chosen to follow the path of development and has been actively participating in large numbers in all government and Army-run initiatives, it said.
The 'whole-of-nation' approach has resulted in "reduction in violence levels, scaled down protests and zero incidents of stone pelting".
The statement also underlined Operation Sindoor carried out on May 7 eliminating at least 100 terrorists in response to the horrific Pahalgam terror attack that killed 26 innocent civilians.
Indian armed forces had launched a series of precision missile strikes on nine terror camps in Pakistan and Pakistan-Occupied Kashmir under this military action, which resulted in a four-day conflict between India and Pakistan.
The hostilities ended with an understanding on halting the military actions on May 10 following talks over the hotline between army officials of the two sides.
"After the DGMO talks on May 10 and May 12, the situation remains stable though unpredictable. However, there has been an increase in Pakistan attempts to surreptitiously infiltrate terrorists through the LoC (Line of Control) and IB sector," the ministry said in its review.
"Pakistan attempted to activate Poonch-Rajouri region as a "hotbed for proxy war during the year 2023-24," it said.
Therefore, the deliverables for 2025 were clearly defined in terms of maintaining robust anti-infiltration grid, relentless conduct of operations in mid and higher reaches to dislocate or neutralise terrorists and reduce local recruitment of cadres by creating a conducive environment for development, the statement said.
"Security situation in hinterland continues to witness consistent improvement since 2019," it added.
Functionality of training camps, presence of terrorists in launch pads and continuing infiltration attempts substantiate Pakistan's "persistent intent to prosecute a proxy war strategy", the ministry said.
"Significant efforts are being made by Pakistan to exploit the IB sector not only to smuggle weapons and narcotics using drones, but also to infiltrate large strength of terrorists," it said.
The ministry further said in consideration of "ongoing operational concerns", sanction for emergency procurement in the niche technology domains of drone and counter-drone, weapon systems, precision ammunition, electronic warfare systems, surveillance systems, etc., was accorded.
"A total of 29 capability development schemes have already been contracted and another 16 schemes are likely to be contracted in December 2025," it said in its review.
On manufacturing of drones and achieving 'Aatmanirbharta' in ammunition production, the ministry said that "515 Army Base Workshop and select Corps Z Workshops/EME Battalions have established credible drone manufacturing capability using in-house expertise and collaboration with subject matter experts".
"The facilities are state-of-the-art, which meet the quality requirements of drones. A total of 819 drones (surveillance -193, kamikaze/armed/weaponised -337, first pilot view -289) have been manufactured till date by EME units".
