Retailers want single window clearance for setting up outlets

In an effort to make setting up of retail outlets in the country hassle-free, the Retailers Association of India has demanded a ‘single window clearance’ system.

In an effort to make setting up of retail outlets in the country hassle-free, the Retailers Association of India (Rai) has demanded a ‘single window clearance’ system. Though global surveys have put India at the top spot for its international retail expansion attractiveness, retailers continue to grapple with numerous licensing formalities.

“Introduction of a single window clearance system to clear an application within seven days would be desirable. In case the retailer already has an existing store in the state, he should be able to obtain a licence for a new one by merely applying to the concerned branch and taking an extension,” said Gibson Vedamani, CEO of Rai.

A single retail outlet to begin operations typically requires between 20-33 licences from various central, state and local authorities. “The delay in obtaining the requisite licences can vary anywhere between three and six months on a case-to-case and state-to-state basis,” said Vedamani.

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Most of these licences fall under the regulations stated in Shops and Establishments Act and labour laws. The various clearances apart from sales and excise taxation include glow sign board, copyright music licence and parking licence. In some states such as Andhra Pradesh, the licensing process has been made simpler by introducing online permissions thereby significantly reducing the time lag. “Such an online clearance mechanism should be adopted by other states as well,” Vedamani said.

Retailers advocate a rational and logical route for clearances. “A huge amount of time, money and effort is spent on procuring these licences through multiple state agencies. Given the wrong perceptions about organised retailing in the government circles and due to the vested local interests, it is unlikely that government would move forward in this direction to ease the current situation,” said Subhiksha Trading Services managing director R Subramanian.