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.
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Dharmasthala case: Vakalatnama filed on behalf of Shri Kshetra Dharmasthala at Belthangady court
Belthangady: In connection with the Dharmasthala case that has attracted nationwide attention, a vakalatnama has been filed on behalf of Shri Kshetra Dharmasthala before the Belthangady court.
Senior advocate C. V. Nagesh from Bengaluru and advocate Mahesh Kaje from Puttur have filed the vakalatnama in relation to Case No. 39/2025 registered at the Dharmasthala Police Station. On December 31, the advocates appeared before the Belthangady court and presented arguments on behalf of Shri Kshetra Dharmasthala. After hearing the submissions, the court adjourned the matter to January 3.
An SIT is currently investigating the case and has submitted a report to the Belthangady court. In its report, the SIT has alleged that a conspiracy was hatched against Dharmasthala and has named six individuals in this regard. However, no action has so far been taken against the accused. The SIT’s application seeking permission to proceed against them is still pending before the court.
This marks the first time that Shri Kshetra Dharmasthala has directly joined the proceedings and presented arguments in the case.
Speaking to the media after the hearing, advocate Mahesh Kaje stated that the vakalatnama was filed on behalf of Dharmasthala in the capacity of a victim. He said the temple has been repeatedly referred to in the case and, as an affected party, should be given an opportunity to participate directly in the proceedings. Accordingly, an application has been filed seeking permission to present arguments on behalf of Dharmasthala.
The court has fixed January 3 as the next date of hearing. Supporting documents have been submitted, and no objections have been raised so far. It was also stated that allegations had earlier been made against Dharmasthala in a public interest litigation filed before the Supreme Court, in which the institution was explicitly named.
In light of this, Shri Kshetra Dharmasthala has sought permission to participate in the case as a victim and present its submissions. Further legal steps will be taken based on the court’s subsequent orders.
