Maharashtra cabinet clears new retail policy

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The cabinet on Tuesday approved the new retail policy of the state which was mooted five months ago. The new policy provides for women employees to work up to 10 pm, provided precautions are taken for ensuring their safety during such time and provisions made for dropping them home in the event they work till late in the night.

The decision will rest with the respective female employee as to whether she chooses to work such shifts or not.

The new policy also allows increasing stocking limits for retailers. Stock storage limits for retail chain stores will be increased. It will allow retail enterprises to stay open year-round to cater to needs of the working class and other class of customers provided that employees are given compulsory weekly offs on a preferential basis. It also wants such firms to be allowed to conduct retail operations from 5 am to 11 pm. Most shops shut by 9.30 pm.

“Food and Grocery Business in retail shall be included under the Maharashtra Essential Services Maintenance Act (ESMA) as ‘Essential Services’ considering the need of society at large in view of the changed working timings and lifestyle,” the new policy states.

The new policy also talks about creation of retail entertainment zones. These areas will be designated areas reserved in the Development Control Regulations of each city which will reserve spaces for retail and entertainment on the same lines as reservations for essential services and restaurants.

This is expected to attract top retail chains, local and global, who find it tough because of spiralling cost of real estate in major cities and towns.

The policy also calls for amending of Development Control Regulations. It states that retail developments would be allowed higher ground coverage upto 70 per cent. This has been done as malls house various retail components across floors, but customer movement reduces on the higher levels (floors) hence making upper floors less productive.

It also allows floor height limit to be raised to 5.5 meters. The state believes that availability of higher floor to floor height allows the common areas and shop looks spacious and provide relaxed and comfortable shopping environment to customers. The new policy provides Additional FSI for Retail Zone to enhance viability of retail centers. It says 50% of additional Floor Space Index (FSI) for development of retail and shopping centers will be admissible over the base FSI subject to payment of full applicable premium as per prevailing ready reckoner rates. The policy also allows hiring of housewives and students on part-time basis. The retailer cannot, however, engage more than 25% of its employees as part-time employees.