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Posted: Wednesday, January 30 2008. 11:00 AM

Retail Policy stuck because of Minor Hurdle

The Indian government's proposed retail policy seems to be stuck because of an uncleared bill of Rs 16 lakh ($40,000) of The Indian Council for Research on International Economic Relations, ICRIER who was assessing the impact of large retail players on the smaller mom-n-pop stores, by conducting an additional survey on the subject, reports Sify.

The government wants ICRIER to reduce this amount, and it appears it would not submit the report till this bill is cleared by the government. The Director and chief executive Rajiv Kumar has not commented on the issue.

The additional survey was conducted by ICRIER last year because the government wanted to broadbase the study. This was after preliminary presentations were made to the Department of Industrial Policy and Promotion (DIPP) in the commerce and industry ministry.

The Centre is of the opinion that Rs 16 lakh is too big a price-tag for an additional survey.

The government's objective was to draw up a comprehensive retail policy from the findings of the study. Early last year, motivated by Sonia Gandhi, the President of Congreess party, the Prime Minister's Office (PMO) had directed the commerce and industry ministry to get a study done on the impact of organised and big retail on the smaller, mom-n-pop stores.

The preliminary findings of the study had shown that small stores have been able to adjust to the emergence of organised retail and that the impact of modern retail on smaller stores wears off with time.

ICRIER was to submit its study to the government by August 2007, but it got delayed because the think-tank was asked to broad-base it after a preliminary presentation was made to the DIPP.


       

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