Andhra Pradesh relaxes norms for retail sector

New policy allows more flexibility in employing part-time workers

The Andhra Pradesh government has unveiled a new retail trade policy, under which retail enterprises are given greater flexibility in terms of open hours, engaging part-time employees, and removal of stock limits for essential commodities, among others. Touted to be the first-of-its-kind policy in the country to have attempted by any state, the policy also offers various incentives and the ease of doing business applicable to other sectors.

Under the policy, unveiled by Chief Minister N Chandrababu Naidu on the sidelines of the Confederation of Indian Industry Partnership Summit here, retail enterprises can stay open seven days a week from 6 am to 11 pm. They can also employ people on an hourly basis, but the number of workers should not exceed 25 per cent of the total employees of the firm. Retail chains will now be allowed to generate customer bills in an electronic form instead of giving them the physical bills.

The distribution centres and warehouses of the retail enterprises are not only allowed to function on a 24/7 basis, they are also declared ‘public utility’ under the Industrial Disputes Act, 1947, to prevent strikes.

POLICY PROPOSALS

• The policy seeks to attract Rs 5,000 crore-investment in the retail sector by 2020
   
• It offers various incentives and the ease of doing business applicable to other sectors
   
• Retail enterprises can stay open seven days a week from 6 am to 11 pm
   
• People can be employed on an hourly basis
   
• The number of workers should not exceed 25 per cent of the total employees of the firm

The state government, through its nodal agency Andhra Pradesh Industrial Infrastructure Corporation, will allot land to set up the distribution centres as well as warehouses under the commercial category for a period of 33 years.

While the government extends the existing single desk policy of approvals for all retail enterprises irrespective of their size, the policy has provided tailor-made incentives for mega retail enterprises, which are defined as the projects that come with an investment of at least Rs 100 crore or those that can give a direct employment to 2,000 people.

Andhra Pradesh constitutes eight per cent of the total estimated retail market of 13 million stores.  The policy seeks to attract Rs 5,000 crore investments in the retail sector by 2020.

Meanwhile, four leading retail chains — Walmart, Future Group, Spencer’s and Arvind — have signed MoUs to invest Rs 1,500 crore in Andhra Pradesh with a total commitment to provide 25,000 new jobs in the retail space.  

Besides, K Raheja Corporation group president Neel Raheja announced the group had identified four cities to establish new shopping malls.

Walmart India president and chief executive Krish Iyer said the company would establish 15 new stores in the state, apart from setting up a centre for sourcing agriculture products from small and marginal farmers.