Announcing this in the Assembly today, Chief Minister VS Achuthanandan lambasted the Centre for its policies on retail chains. He said the state government or the local bodies currently had no powers to ban the entry of retail majors into the state as the Centre had repealed the law in this regard in 2001.

To combat the retail invasion, the government would bring in a legislation for putting a check on the retail biggies' foray into Kerala. The state government had, almost a year ago, said the same but the law is yet to be enacted, irking the traditional traders in the state.

Achuthananthan, replying to a submission in the House, said the government would not shy away from imposing surcharge and additional taxes on outlets run by the retail chain players.

Adding that even the Kerala High Court had taken a favourable stand toward the big retail players, the chief minister said the state government would overcome all hurdles in its way to help and support the trader community in the state.

The protests against the entry of retail chains have generated much heat. Adding to the woes of the government and big retail companies, the traders in the state were on strike today.

The traders under the aegis of the Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES) succeeded in bringing businesses to a complete halt as tens of thousands of medium and small shop owners participated in the daylong strike. However, hotels and medical shops were exempted.

The traders also urged the state government to keep its promise of enacting a legislation to check the entry of retail chain firms.