Maharashtra's draft Retail Policy covers e-commerce too

* Focusses on creating Retail Entertainment Zones, accelerate investment flow to under-developed regions
By Kartik Lokhande 
Maharashtra Government, on Thursday, released draft of the Retail Trade Policy-2015 becoming the first state to do so. The draft policy defines retailer, multi-brand retail or supermarket, and single-brand retailer, and also covers direct selling as well as sale of goods through e-commerce, television, mobile phone or tablet, and other new-age platforms.
The draft will become full-fledged policy once approved, and it will be applicable for five years. The policy has been drafted with a vision to boost State’s economic competitiveness by promoting and facilitating world-class logistics and warehouse chain, minimising wastage and transaction cost within retail enterprise, and giving the best value for money to consumer while maximising returns to producers, farmers, and small and medium enterprises. It also aims at making Maharashtra the most favoured ‘economic magnet’ within the country and across the globe.
The draft policy has been prepared to further accelerate investment flow to underdeveloped regions of Maharashtra. Sources said that this particular clause may benefit Vidarbha region, which has seen a tremendous rise in retail trade with multi-brand retailers or supermarkets already available here. Further, the sale of goods through e-commerce and other new-age platforms like mobile and tablet is picking up very fast in Vidarbha region. It has been mentioned in the policy draft that it aims at creating more employment opportunities and to educate youth, especially in rural areas to take part in retail trade.
Apurva Chandra, Principal Secretary (Industries), Government of Maharashtra, told ‘The Hitavada’ that the draft was prepared after giving much thought to rise of retail segment in Maharashtra through various platforms. “It will boost economic activity in the State. As per the draft, we are offering relaxations, exemptions, and co-operation to retail investors and the proposed policy does not involve any financial burden on the State,” he said.
Among the relaxations are exemption to retail enterprises from maintaining physical records for attendance and salary, and these shall have an option for self-certification and filing of consolidated annual returns under 13 laws administered by Labour Department. Interestingly, the option to employ housewives and students on part-time basis has been considered while preparing the draft of the policy. As a result, the minimum ‘per hour wage rate’ shall be determined proportionately in accordance with minimum monthly/daily wage rate specified under Minimum Wages Act. The part-time workers shall be exempted from other laws. However, the draft makes it clear that a retail unit cannot engage more than 25 per cent of its employees as part-time employees.
The policy takes care of training to youths and has set eyes on training one lakh youths over a period of five years. For the purpose, Skill Development Department shall make an initial provision of Rs 10 crore. Targets and allocation of funds shall be done on year-to-year basis, later on.
State Government has spelt out that it shall come out with a notification rationalising the ‘onus/actions/fines’ for non-compliance of provisions of Legal Metrology Act, 2009, and rules made thereunder, to be taken against manufacturer, packer, importer or wholesaler/retailer. In such cases, wholesaler/retail dealer will be made a party or witness to establish case against manufacturer, packer, importer. The policy draft also states that different outlets of single-brand retail organisation for the same offence, and only the store should be held liable for non-compliance of norms.

Retail Entertainment Zones
As per the draft policy, Development Control Regulations (DCR) shall reserve spaces for retail and entertainment on the same lines as reservations for essential services and restaurants, to make retail ‘more affordable’. At present, space is not reserved for shopping and recreational needs of citizens.
The draft policy states that the Government shall make efforts to provide retail areas with direct access to mass public transport systems, secure a long-term traffic plan, secure all year round connections of electricity, water, gas, sewage, and Information Technology. “Creating a zone for retail and recreation would ensure that there is an increase in consumption and more importantly would raise the standard of well-being of citizens,” it states.
Under the proposed policy, State Government proposes to consider the concept of Retail Park or Retail Entertainment Zone (REZ) under master plan for city. Such park or REZ should be preferably adjacent to a highway and with an integrated public transport system.
A provision is proposed to be made in master plan for city to reserve land for retail development. Under DCR, various modifications have been proposed. These include higher ground coverage subject to fire safety regulations, recreation ground area for customers, floor-to-floor height limit to be raised to 5.5 metres, larger parking space without FSI implication etc. Further, ‘to enhance viability and quality of development’ for retail centres, the Government has proposed to admit up to 50 per cent additional FSI for development of retail and shopping centre, subject to payment of full applicable premium as per the prevailing Ready Reckoner rates.

Key initiatives proposed in
draft Retail Trade Policy  

* Appointment of nodal officer under Ministry of Industries to facilitate single-window clearance. 

* Relaxation of rules under Shops and Establishment Act with regard to working hours, work shifts, and employment of part-time workers and maintenance of records.
* Inclusion of food and grocery retailing in essential services.
* Relaxation in stocking limits under Essential Commodities Act.
* Creation of Retail Entertainment Zones.
* Treating distribution centres at par with industries.
* Exemption from Agricultural Produce Marketing Committee regulations, and exclusion of retail trade from prior permission and charges with regards to store sign boards
* Rationalisation of power tariff for retail trade, and allowing Open Access for power for retail trade set-ups having power supply requirements above 1 MW.
* Formation of State-level Empowered Committee to monitor implementation of the policy and develop procedures, and making amendments ‘whenever and wherever’ required’. 

(30-07-15)