It’s good news for retailers and related businesses operating in the state of Andhra Pradesh as the Retail Parks Policy 2021-26 comes into force. Currently, Andhra Pradesh holds the No. 1 position in the Department for Promotion of Industry and Internal Trade’s (DPIIT) ranking on ‘Ease of Doing Business’ (EODB) among States in India. This policy will give a further fillip to the ‘Ease of Doing Business’ in the state for retailers and businesses operating in the retail ecosystem, said Retailers Association of India (RAI).
Speaking about the policy, Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said “The Retail Parks Policy 2021-26 is a welcome initiative by the Andhra Pradesh government. The reforms in the policy such as the single desk online clearance for licenses, setting up of retail hub, and simplified labour laws that include night-shifts for women workers among others are progressive steps that will help take retail in the state to the next level. We hope others states too will follow suit.”
While the policy has several measures for enhancing ease of doing business like single Desk Portal for Online Clearances and ease of compliance, RAI highlighted two benefits.
External Infrastructure: The Mega Retail Park developer will be eligible for reimbursement of 50 percent of cost of external infrastructure for the park with a specified cap based on the employment, whichever is lower. The minimum reimbursement being INR 3 crores and maximum being Rs 5 crores.
Stamp Duty: Reimbursement of 100 percent of stamp duty for lease / sale of retail units within Mega Retail Parks on first transaction only.
The Andhra Pradesh Retail Parks Policy 2021-26, will boost retail trade within the State of Andhra Pradesh thereby increasing the GSDP. This policy is said to attract investments into retail to the tune of Rs.5,000 crore in the sector by 2026. Moreover, it will help create around 50,000 additional direct employment and several indirect employment opportunities in the state’s retail sector by 2026.