Economy

CEAMA welcomes mandatory star labelling programme extension

Our Bureau Mumbai | Updated on November 23, 2021

The extension will prevent obsolescence of 3 million units of AC’s and prevent losses to the tune of ₹6,500-6,700 crore

Consumer Electronics and Appliances Manufacturers Association (CEAMA), the apex body representing consumer electronics and home appliances, has welcomed the 6-month extension for the Star Labelling Programme by the Ministry of Power.

The extension is applicable to segments of air conditioners, refrigerators, and television. Keeping in view, the interests and greater good of the industry, CEAMA had proposed an extension of the programme to the Ministry of power.

Obsolescence prevented

In consultation with the Ministry of power, CEAMA highlighted the current Industry situation in the air conditioner, refrigerator and TV segment. In the Air Conditioner segment, the extension will prevent obsolescence of 3 million units of AC’s and prevent losses to the tune of ₹6,500-6,700 Crore. In the Refrigerator segment, the extension would ease the burden on industry and make the process less onerous in terms of cost. In the television segment, the extension would help in ease of doing business.

Also read: Consumer durables sector see moderate H1 despite premium push

CEAMA proposal also highlighted that it is a win-win situation for both the sellers and the buyers. The seller can curtail its production cost due to the extension and ultimately the buyer’s purchasing power won’t be hurt.

Eric Braganza, President-CEAMA, said, “CEAMA welcomes the move by the government. The change in energy ratings requires large investments from manufacturers. The additional investment leads to a price hike and this ultimately impacts consumer demand. Thus, the extension should bring some respite to the manufacturers in these tough times. It would also aid in preventing financial losses. CEAMA has been constantly striving to deliberate challenges, opportunities and possible solutions for the sustainable growth of the industry.”

Published on November 23, 2021

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