Maharashtra is moving quickly to formulate its policy on organised retail. According to the draft framework being discussed with stakeholders, the government seems to be willing to go all out to give a boost to retail development. The draft policy not only proposes to give significant real estate sops to retailers, but also seeks to provide more employment opportunities.
The state is looking to revive the sliding fortunes of brick and mortar retail. The state government is working towards a new multi-brand retail policy and the draft note promises a big boost to both retailers as well as real estate players.
The draft policy proposes single window clearances for license procurement and creation of retail entertainment zones.
A big thrust on retail space development is also on the cards, and the state government is looking to amend development control regulations to facilitate the same.
The proposed changes include giving malls a higher ground coverage of up to 70 percent and raising the floor to floor height limit to 5.5 meters. Developers may also be allowed to build larger car parks without having to pay for additional FSI or floor space index.
Next comes relaxing mall and other retail establishment timings. This will be done by amending the Shops and Establishments Act to allow retail enterprises in the state to stay open from 5 am to 11 pm.
Another major change in the draft retail policy is the proposal to amend the APMC Act so that farmers can sell their produce directly to retailers.
The draft also suggests allowing organized retailers to set up warehouses on agricultural land and on a PPP basis.
Maharashtra government is still inviting comments on this draft policy, and initial views indicate that small traders may not be very happy with some of the proposed changes. Interestingly, while the draft policy addresses several critical areas, it is strangely silent on the issue of FDI in multi-brand retail.
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