The Hindu Business Line : Call for 100% relaxation of floor space index

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New Delhi Feb. 26 With the Union Budget round the corner, the measures the retail industry would like the Finance Minister, Mr P. Chidambaram, to consider to support the growth in the sector include relaxation of floor space index (FSI) by 100 per cent, levy of property tax for retail establishments at the same level as that of residential areas and total exemption of excise duties on all private labels manufactured by retailers.

According to Mr Gibson G. Vedamani, CEO, Retailers Association of India (RAI), "Modern organised retail today is around 9 per cent of the total retail industry size of over $320 billion. According to AT Kearney's 2006 report, the organised retail sector in the country is poised to grow at around 35 per cent compounded annual growth rate (CAGR) for the next few years. It's time to recognise the sector and extend benefits to it so that the growth in retail is supported adequately."

Recognising real estate as an important element for the growth of the retail sector, RAI has suggested 100 per cent relaxation of the floor space index for designated retail projects. The organisation also hoped for an industry-friendly and supporting environment through a single window interface for issuing licences and permissions.

The sector would also like the Government to allow organised retail to work 24 hours a day throughout the year, thus exempting it from the applicable provisions of related Acts and Rules. Besides, part-time employment should be allowed, and the sector should be given full-fledged `industry' status making it eligible for capital subsidy benefits. Also, it should be granted a 100 per cent waiver of registration fee for purchase or lease of land/building for retailing purposes.

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