• Posted on: 8 March 2016
  • By: admin

"As of 2015, India's retailing industry is largely owner-manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employ about 40 million employees (3.3% of Indian population)....

The growing middle class is an important factor contributing to the growth of retail in India. By 2030, it is estimated that 91 million households will be ‘middle class’, up from 21 million today. Also by 2030, 570 million people are expected to live in cities, nearly twice the population of the United States of America today....

The State of Maharashtra is a leading State in Retail Business. The retail trade comprises enterprises engaged in retailing goods and services. These enterprises fall into various segments, which include food and grocery, apparel, footwear, consumer durables, home appliances and equipment, restaurants, cinema halls, multiplexes, home furnishing and furniture, jewelry, books, music, watches, pharmaceuticals, beauty and healthcare. These enterprises sell various categories of items and use multiple channels including brick and mortar, direct selling, e-commerce and other channels..."

 

"Multi-brand Retail" or "Supermarket" or "Hypermarket" is where many items are sold under a single roof, e.g. Big Bazaar, Central, InOrbit etc.

"Single Brand Retailer" is the one who sells its own branded goods across its own outlets. Single-brand retailer owns whole supply chain and is the manufacturer, packer, importer and wholesaler of all goods.

 

VISION

To create an efficient and seamless internal trade opportunity and to boost the economic competitiveness of the State's economy by promoting and facilitating world-class logistics and warehouse chain, minimizing wastage and transaction cost within the retail enterprise, giving the best value for money to the ultimate consumer while at the same time maximizing returns to the producers, particularly farmers and SMEs.


MISSION

To prepare strategies to provide a globally competitive and sustainable investment environment, thereby making Maharashtra one of the most favoured economic magnets and centers of unlimited opportunities within the country and across the globe.


POLICY OBJECTIVES

• To uphold Maharashtra’s leadership position in the Retail Trade within the country

• To further accelerate investment flow to underdeveloped regions of the state

• To create more employment opportunities, to educate the youth of all sections of the society across the region, especially in rural areas to take part in Retail Trade

• Leverage Retail Trade as a tool for socio-economic development of the State

• To strengthen existing unorganized small retailers to face globalization.


Key Initiatives

Appointment of a Nodal Officer:


Industries Department will appoint a Nodal officer from MAITRI (Maharashtra Industry, Trade & Investment Facilitation Cell). The Nodal Officer shall coordinate with all the departments and Ministries of Maharashtra vis-a-vis Central Government and members of industry to facilitate licensing, development and growth of retail enterprises. MAITRI will provide an interface to resolve issues posed by the small and organized retail industry of the state


Relaxations under the Shops and Establishment Act :

Self-employed establishment or establishments where less than 9 employees are in working condition:

• Online registration facility under Shop & Establishment Act and exemption from ‘Inspection’ or ‘approval’ under other labour laws

• Online Registration for Value Added Tax (VAT) with exemption from ‘Inspection’

• If in any case complaint of the specific nature is received, without prior permission of a District Officer, general inspection of shops will not be carried out by Labour Department, Sales Department, etc.


With regard to working hours, work shifts and employment of part-time workers and maintenance of records:

i) Retail enterprise shall be allowed to stay open every day of the year to cater to the needs of the working class and other class of customers, provided that the employees are given compulsory weekly offs on a preferential basis.

ii) Retail enterprise dealing in all goods and commodities shall be allowed to conduct retail operations between 5 am and 11 pm. The enterprises can remain open between 11 pm and 5 am only for logistics and supply purposes.

iii) Women employees shall be permitted to work up to 10 pm, provided precautions are taken for ensuring their safety during such time and provisions made for dropping them to their respective homes safely in the event they work till late in the night by concerned Management. The decision shall remain with the respective female employee as to whether she chooses to work such shifts or not. iv. Retail enterprise shall be exempted from maintaining physical records for attendance and salary.

v. Self-certification and filing of consolidated annual returns under 13 Acts administered by the Labour Department as below:

• The Maharashtra Shops and Establishment Act, 1948 • The Minimum Wages Act, 1948 • The Payment of Wages Act, 1936 • The Apprentices Act, 1961 • The Contract Labour (Regulation and Abolition) Act, 1970 • The Child Labour (Prohibition and Regulation) Act, 1986 • The Payment of Gratuity Act, 1972 • The Equal Remuneration Act, 1976 • The Payment of Bonus Act, 1964 • The Employment Exchanges (Compulsory Notification of Vacancies Act), 1959 • The Workman’s Compensation Act, 1923 • Inter State Migrant Workman (Regulation of Employment & Conditions of Services) Act, 1979 • The Factories Act, 1948


Retail enterprise can offer part-time employment to such individuals like Housewives and women, provided the worker is not ready to work full time. For this purpose, the consent of the worker shall be taken before hand. Minimum per hour wage rate shall be proportionately determined in accordance with minimum monthly / daily wage rate specified under Minimum Wages Act. These part-timers shall be exempted from other laws. The retail unit cannot engage more than 25% of its employees as part-time employees.


Inclusion of Food and Grocery Business in Essential Services

Only perishable goods/items from Food and Grocery business to be included in Essential Services Maintenance Act (ESMA).


Relaxation of Stocking Limit under Essential Commodities Act

Ministry of Food and Civil Supplies will either repeal order issued under Essential Commodities Act or will increase stocking limits specified under these orders:

1) Implementation of ESSCOM Orders’ (Essential Commodities) shall be rationalized,

2) permissible stocking limits for which license is required shall be enhanced

3)  procedures for getting license and its renewal shall be reduced and simplified.

4) stocking limits in godowns in rural areas shall be higher

5) Greater storage limits for retail chain stores


Human Resource Development and Skill Development

Special emphasis needs to be given to the development of human resources and skill development for the Retail industry. It would be available to make mandatory for retail establishments to employ certified personnel / staff. The required staff for the different retail sectors should be skilled as per National Skill Qualification Framework aligned modules formulated or approved by the appropriate authorities for the concerned retail segments. The State-run agencies and well-known private institutions will institute training-based certification and placement programmes. They would collaborate with retailer's associations as well as the local retail industry to understand their resource requirements.

Skill Development Programme for the Tribal and Rural Youth: This scheme is proposed to develop various skills and knowledge for economic growth and social development of tribal and rural youth. The tribal and rural youth will be trained in various fields of the retail enterprise, retail marketing, human resource development and health conservation under their on-going schemes.

Centre of Excellence: Centre of excellence would be set up on public private partnership (PPP) mode by Maharashtra Industrial Development Corporation. 


Implementation Of Packaged Commodity Regulations

All pre-packaged commodities should have certain declarations as specified by the Act & Rules- Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011.

The State Government shall come out with a notification rationalizing the onus / actions / fines for non-compliance under S. 36 of provisions of the Legal Metrology Act 2009, and the rules made thereunder to be taken against the manufacturer / packer / importer as per the provisions of the Act and its rules, and / or against the wholesaler / retailer for the first and subsequent offences, if any. The wholesale / retail dealer from whom goods have been found or seized will be made a party or witness so as to establish the case against the manufacturer / packer / importer. In single brand environment, the store should be held liable for non-compliance.


Retail Entertainment Zones ( REZ )

Retail shall be considered as an ‘essential amenity’. The Regional Plan / Development Plan shall reserve spaces for retail and entertainment on the same lines as reservations for essential services and restaurants in order to make retail more affordable.


The state government shall recognize the need for shopping and recreational areas to create much needed balance in urban places between residential, commercial, industrial, shopping and recreational areas. Efforts will be made for providing retail areas with direct access to mass public transport systems; secure a traffic plan designed for the long term; secure all year round electricity, water, gas, sewage and IT connections.


 Zones for Retail in Regional / Development Plans 

The City Development Plans shall reserve land for retail development on the lines of Delhi, wherein they have been able to create specific centers in South and West Delhi for retail. The pre-requisite in Municipal Council will be minimum 12-meter road width & in Municipal Corporations it will be minimum 15-meter road width.


 Simplification in Development Control Regulations (DCR)

Sanctioned Development Plan governs retail development largely as per the norms governing the commercial properties. In reality the business uses and requirements are different for the retail development and hence there is a need to incorporate such specific business needs.

Higher Ground Coverage - The malls house various retail components across floors, but the customer movement reduces on the higher levels (floors), hence, making the upper floors less productive. The retail developments shall be allowed higher ground coverage up to 70%.

Recreation Ground - In a retail environment there are organized players offering various types of recreational facilities and activities on commercial basis, such activities within the applicable norms should be allowed to be set up in the Recreation Ground (RG) are. 

Floor-to-Floor Heights: The floor-to-floor height limit shall be raised to 5.5 meters.

Parking Norms: The parking rules which currently provide that parking in excess of regulation to be considered as FSI, will be changed to allow larger number of car parks in retail development without FSI implication.

Services: 15 % of development will be allowed as service including storage area, in the basements. Accordingly existing rules will be modified to that extent.

Changes: The once approved retail and other user spaces will be allowed to be amalgamated or divided or interchanged with simplified approval process, provided these changes do not affect structural stability of existing building.

Building height - There is a height restriction of 30 meters for buildings which house a multiplex or auditorium. The restriction on building heights, considering other applicable norms like fire safety, etc., will be relaxed looking into the capabilities of Planning Authority as is in the neighboring states.


Additional FSI for Retail Zone

To enhance the viability and quality of development for retail centers, up to 50% of additional Floor Space Index (FSI) for development of retail and shopping center will be admissible over the base FSI on separate land only subject to payment of full applicable premium as per the prevailing ready reckoner rates.


Distribution Centers shall be treated at par with service industries

Distribution centers shall be recognized at par with the service industry.


Exemption from Agricultural Produce Market Committee Regulations

Sourcing the farm produce from APMCs leads to delays and also reduces the quality and shelf life of the farm produce like fruits and vegetables and also adds to the procurement cost. As per the Agricultural Produce Marketing Committee (APMC) Act, a farmer cannot sell his produce directly to the retailers. The APMC Act will be suitably modified so that the farmers can sell their produce like fruits and vegetables directly to the retailers without going through the APMC. 


Formulation of clear operational guidelines for Mathadi Act

 Currently the retail industry employs many people for various functions in retail business including for jobs like loading / unloading of merchandise in the retail stores and distribution centers. They are protected workforce and are either employees of the retailer or are from authorized contractors. Exercising the power conferred under the Section 22 of The Maharashtra Mathadi, Hamal And Other Manual Workers (Regulation Of Employment And Welfare) Act, 1969 State Government shall exempt retail enterprise from the provision of this act provided that:

i) The said classes of the establishments employ the workers on their rolls as permanent employees. These workers are protected and enjoy better benefits than envisaged in the Mathadi Act.

ii) The said classes of the establishments engage contract workers as permanent employees who are getting all the benefits under various sections of the labour law and enjoy better benefits than envisaged in the Mathadi Act.


Permission for Store Sign Boards displaying Trade names of the company

permission of the Commissioner or Chief Officer of Municipal Council or authorized person of Special Planning Authority is required for displaying advertisement hoardings by means of surface or structure erected on ground or any portion of a roof of a building or on/above the parapet, with characters, letters or illustrations applied thereto and displayed in any manner along with payment of prescribed fees. As long as the sky sign is fixed in and out of the self-owned, leased or mortgaged premise of the retail store, by the trader advertising his own business it shall not attract the requirement of permission of the Commissioner or Chief Officer or Competent Authority and payment of fees. This will not be applicable if a trader is advertising for someone else’s business.


Allowing Open Access to Source Electricity


The retail trade set-ups having power requirements above 1 MW will be allowed open access.