12.1.16

Andhra announces Retail policy

The Andhra Pradesh government has announced its retail policy -the first state to do so. It offered greater flexibility in labour laws pertaining to working hours for ease of doing business in the retail sector.
The state has included food and grocery retail enterprises under the Essential Services Maintenance Act (ESMA) to dissuade strikes. It has also declared distribution centres and warehouses of retail enterprises as public utilities under the Industrial Disputes Act, 1947, to prevent flash labour strikes.
The state, which currently accounts for nearly 8% of India's total retail market of 13 million stores, hopes to attract at least Rs.5,000 crore investment by 2020.` After unveiling the retail policy during the three-day Partnership Summit organised with the Confederation of Indian Industry (CII) in Visakhapatnam, chief minister N Chandrababu Naidu announced signing of some memoranda of understandings.
Retail giants such as Walmart, Future group, Spencer's and Arvind Lifestyle are among those who have agreed to set up large format stores, involving an aggregate investment of at least Rs.1,500 crore. Together, they promised to provide at least 25,000 new jobs.
Naidu said, “We expect the new retail policy to help Andhra Padesh emerge as a hub for retail logistics and promote setting up of warehouses and distribution centres. We also hope it will help accelerate investment flows and socio-economic development.“
Highlighting the advantages Andhra offers to retailers in the form of produce in agriculture, horticulture, dairy and poultry , Naidu said his state has the potential to emerge as the retail hub in India.
Other key points include removal of stock limits for essential commodities and allowing retailers to engage part-time employees. Enterprises may engage workers on hourly basis, operate distribution centers and warehouses through the day, apart from generating electronic bills for customers in place of physical bills.
Enterprises will also be able to stay open through the week for extended hours of up to 15 hours a day to begin with. Apart from granting approvals through single desk system, the Andhra government will allot land to retailers to set up distribution centres and warehouses under the commercial category to be valid for a period of 33 years.
It proposes to extend tailormade incentives to mega retail enterprises with investments of Rs.100 crore or employ at least 2,000 people.

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