Seeking to develop Haryana as a major hub for retail industry in the country, the Manohar lal Khattar Government will soon roll out “State retail policy” which envisages a slew of initiatives including opening of 24X7 stores, fiscal incentives, online clearances among others.

The draft retail policy has proposed measures towards ease of doing business, initiatives for strengthening infrastructure, simplified labour laws, rationalization of inspection system, support for human capital development and regulatory simplification. 

Aimed at providing strategic direction for development of the retail sector in Haryana in the coming years, the first state retail policy has proposed to attract investment to the tune of Rs  10,000 crore and generate new employment of 150,000 in retail sector by 2022, increase the contribution of retail sector in state GDP by 25 percent by 2022 and develop world class mega distribution centres, warehouses and mega retail hubs in Haryana. 

The Chief Minister Manohar lal had in last December during his Dubai visit announced to come out with a liberal retail policy in Haryana. 

“The master plans developed by planning authorities in the state shall reserve land for retail development and mixed land use will be considered as well. Recognizing the investment potential in warehouses/distribution centres in Haryana, the government shall grant industrial status to this segment,” reads the draft policy. 

“The retail enterprises shall be allowed to operate 24 X 7 (in three shifts), provided employees work in a maximum of two shifts with a minimum of one hour rest period. The employees should also be given compensatory, compulsory weekly offs on a preferential basis without any deduction of benefits. Also, working hours of the employees will be a maximum of 9 hours per day and not more than 48 hours in a week,” stated the draft laying out stress on simplified labour laws. 

For women employees, the policy stated, “They shall be permitted to work in all shifts provided employer ensures occupational health, equal opportunity for women workers, safety, adequate protection of their dignity, honour and transportation from the company premises to their residence. The decision, however, shall remain with the respective female employee as to whether she chooses to work in such shifts or not and the companies employing women staff in night shifts shall come out with specific policy regarding safety measures.” 

To facilitate creation of distribution centres or warehouses across the state, the government has proposed providing financial assistance to the tune of 50 percent of total project cost with maximum limit of Rs 10 crore to promoter or developer of world class distribution centres or warehouses developed over minimum area of 25 acres.  Apart from this, the projects involving fixed capital investment (i.e. land, building, plant and machinery) of Rs 100 crore and above will be accorded mega retail enterprise status and Government shall sanction special packages for mega retail hubs. 

To facilitate use of alternatives such as bags made from paper, cotton, jute etc, the State Government has proposed to provide capital subsidy to units engaged in manufacturing of alternatives at 15 percent of cost of plant and machinery or Rs 10 lakh whichever is less.

A single window system for online clearances which is already in place in the state will facilitate all clearances to set up retail enterprise in Haryana in maximum of 45 days. The State Government’s constituted three-tier grievance redressal system (district level grievances committee, state level grievances committee, apex level grievances committee) will also facilitate resolution of issues related to various departments in respect of functioning of the retail enterprises.

Further, the State Government will also encourage retail enterprises to conduct skill development training programmes by reimbursing 75 percent of the total cost of these programmes subject to a maximum cost of Rs 10,000 per trainee. In lieu of this assistance, retail enterprises shall assure 75 percent guaranteed placement of the trainees (at least for one year). For this, an initial provision of Rs 20 crores is proposed to be made for the said initiative.

Among other provisions in the policy, inspection of retail shops shall be undertaken only with the approval of the Head of the Departments and after prior intimation, setting up of franchised development center and inclusion of Food, Grocery and Pharmacy business retail enterprise under the state’s Essential Services Maintenance Act as ‘Essential Services‘.

The State Government had in the past also introduced IT and ESDM Policy, Start Up policy textile policy among other policies to put in place a mechanism to facilitate various sectors in Haryana.