Reliance Retail to shelve UP, Orissa plans
Peeved by the treatment meted out to its UP and Orissa retail ventures, it is now shelving its Rs 13,000-cr roll out plans.business Updated: Sep 29, 2007 21:33 IST
Peeved by the treatment meted out to its retail venture by Uttar Pradesh and Orissa governments, Reliance Industries is understood to be shelving its estimated Rs 13,000 crore roll out plans in the two states, putting at least 10,000 jobs at stake.
Reliance Retail had planned to invest around Rs 8,000-Rs 10,000 crore in Uttar Pradesh for retail operation, including about 200 'Reliance Fresh' stores in three years as also the back-end logistic chain. However, in the wake of state government asking it to shut down the outlets, the company has decided to put the plans on hold, sources said.
Similarly, the company is having a rethink on its strategy in Orissa, where it had planned to open an initial 14 stores in Bhubaneswar and Cuttack. The overall investment in the state is estimated to be about Rs 3,000 crore.
Reliance suffered a setback in Orissa two days back, when it was forced to down shutters as soon as its three outlets were opened following protests by local traders.
When contacted, company officials declined to comment. It is, however, learnt that the company has decided to focus on states which are favourable to its retail venture.
Reliance's move will put at stake about 10,000 direct and indirect jobs in Uttar Pradesh and Orissa. These people are involved in the company's back-end as well as front-end operations, the sources said.
Already, about 1,000 people, 60 per cent of whom are directly employed, have been sacked in the northern state as the company starts folding up its retail operations, they added.
First Published: Sep 29, 2007 21:25 IST