RE: FOR ATTN : SHRI Narendrabhai Modiji

Shop Open  24 / 7  ?  Can be a Game Changer  !

-      And dismantle  Inspector  Raj  !

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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

My following blogs , show how this initiative could help reduce UNEMPLOYMENT

Friday, 24 June 2016

50 MILLION NEW JOBS in 5 MONTHS ?

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 :

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06  July  2017

www.hemenparekh.in / blogs