Voltas, which caused a flutter in the market by offering a summer line with 42 new models, has introduced a zero per cent interest installment scheme for its buyers.

Amtrex Appliances, another leading player in the air-conditioner market, also offers a zero per cent interest scheme.

Fedders Lloyd, which has launched a range of air-conditioners, has come up with an exchange offer for its range, including payment by installment at nominal interest rates.

Godrej Appliances also has an easy installment scheme at an interest rate of 8.99 per cent on a 36-month tenure.

DCM Shriram also launched a new range of air-conditioners this summer for retail and industrial consumption.

This apart, there is also competition overdelivery thrown in with Amtrex promising delivery in ``two hours flat'' while Fedders Lloyd offers a free home-delivery system.

Interestingly, air-conditioners have become affordable with the prices ranging from Rs 21,000 onwards for a one-tonne model and Rs 25,000 for a 1.5-tonne model. These prices are equivalent to the prices of, say, a premium 21-inch colour television model.

But even though air-conditioners are not too heavy on the pocket, their retail market is infinitesimal. The main reason is the high cost of maintenance. According to one manufacturer, the cost of maintaining an air-conditioner is 10 times the buying price. Thus, the retail segment for air-conditioners has not picked up at all. Another reason is air-conditioners also run up heavy electricity bills. Air-coolers are more popular.

The grey market for air-conditioners, which is booming in India, contributes to more than 60 per cent of the sales. Assembled air-conditioners are cheaper than the branded ones, although manufacturerssay that the cost of maintaining these is higher than that of the branded models.

But in spite of this state of affairs, India is seen as having the highest potential for the air-conditioner market.

Many foreign players have announced their plans to enter into the air-conditioner market in India. Matsushita of Japan is setting up a plant near Chennai, which has an annual capacity of one million units.

The plant is expected to go on-line commercially by 1999.their players like LG Electronics, Whirlpool and Samsung have also voiced their plans to tap this market. LG introduced a few models in the country earlier this year and plans to come up with some more next year.