Economic Times ( 05 July ) reports :
The Maharashtra Government is giving finishing touches to a bill that would allow most shops - kiranas , tailors , supermarkets etc – in Mumbai to stay open throughout the night , seven days a week
Friday, 24 June 2016
It is reported that the Union Cabinet will soon approve a notification which will allow establishments covered by the Shops and Establishment Act to remain open round the clock ( 24 hours )
Currently , if they remain open for 10 / 12 hours , they end up inviting visits by Inspectors of Establishment Department and the Labour Department , to collect their weekly " haftas "
With official sanction of 24 hours , that would go !
And 24 working hours will enable these shopkeepers to compete with those Foreign Companies bringing in 100 % FDI in retail but working for 8 hours / day !
And as soon as one Grocery store starts working longer hours ( even 12 hours ) , most of the neighbourhood stores will follow suit !
For our 50 million MSMEs to, not only take on these Foreign Giants but to defeat them in competition , is only possible when we stop playing the RETAIL GAME by the Rules of those Foreign Countries , and make them clue-less with our own NEW and OUT-OF-BOX rules !
Possibly half of these may be covered by Factory Act and the remaining half by the Shop and Establishment Act
Between them , they employ 90 % of India's work force of around 500 million
Average of approx 9 persons per MSME
Now , even if only 5 million ( out of 25 million shops ) just add ONE more employee to work longer hours , that would get jobs to 5 million youth !
That is quite a lot ! And without any additional Capital Investment !
Compare this advantage with Capital required to create ONE new job in Start Ups
As per Government , Rs 10,000 cr of " Fund of Funds for Start Ups " , will catalyze an Equity Investment of Rs 60,000 cr , which , in turn will enable raising of Debt of Rs 120,000 cr - totaling Rs 180,000 cr of capital
As per Government , that will generate 18,00,000 jobs ( in 5 years )
That is requirement of Rs 10 LAKH for each new job created in a Start Up !
While welcoming this initiative , I urge the Union Government to take following steps simultaneously , in order to generate , not just 5 million but 50 MILLION new jobs in the MSME sector ( and without additional funds ! ) :
# Abolish all visits by Inspectors ( Labour + Shop & Establishment Departments )
# Allow MSMEs to engage Apprentices under the recently revised Skills Development Regulations / Apprentice Act
# For them , remove the upper limit ( of Apprentices ) which is maximum of 10 % of employee strength
# Let them engage Apprentices up to 100 % of their existing employees
# Let them keep these trainees for 3 years under " Retail Establishment Trainee Scheme "
# Let the stipend be 100 % ( instead of currently prescribed 60-70-80 % ) of semi Skilled Minimum wages
( Minimum Semi Skilled Wages are approx Rs 6,000 per month - so Shopkeeper need to pay Rs 6000 pm )
# Concerned State Governments to subsidize 50 % of this stipend (so, Shopkeeper's burden to be Rs 3,000 pm )
[ STIPEND SUBSIDY DOES NOT VIOLATE WTO ! ]
# To ensure fool-proof compliance with the number of Trainees engaged and Stipends paid , this Scheme
( 24 hr open + 100 % trainees + 100 % Stipend + 50 % Subsidy + 3 year training program + No inspectors ),
will apply ONLY to those Shops which implement , mobile app MAD outlined in my following blog :
06 July 2017
www.hemenparekh.in / blogs