Reliance Fresh outlets left high and dry in UP

Lucknow, Aug 26 (UNI) Reliance retail outlets have been left high and dry as Uttar Pradesh government still sticks to its decision to close down Company's Fresh stores in the state even as the industry and farmers have urged the state government to reconsider its decision.

The UP government in rather expected decision, being seen as the major blow to the fledgeling retail sector in the state, had ordered to close down Reliance Fresh stores on August 23, a day after 10 stores were opened in the state capital, citing law and order problems in the wake of traders's protest.

The Chambers of Industries, farmers' community and the consumers in general are miffed at the state government's decision asking the state government to reconsider its decision immediately in the larger interest of the industries and the farmers.

UP chapters of Confederation of Indian Industry (CII) and PHD Chambers of Commerce and Industry( PHDCCI) reacted sharply to the state government's decision, terming it as a retrogative step towards industrialisation of the state.

UP government's decision comes at a time when the Reliance retail is pumping huge amount of money in the state as well as creating a chunk of jobs in the retail sector. Moreover, the possible entry of other reatil chains like 'Subhiksha', Wall Mart and Metro in UP would act as a deterrent to such move.

The state government had also withdrawn its much-hyped new agriculture policy which was hailed as 'pro-retail' sector policy and was announced with fan fare by Chief Minister Mayawati on August 3 last.

''This is not only a deterrent to the retail sector but the entire industry in UP and the potential investors would think twice to come to the state,'' Deepak Mallik, Chairman CII said.

After successful foray of 'Big Bazaar' and 'Spencers' in the UP, Reliance retail was willing a major investment in the state with Reliance Fresh and Reliance Hyper stores being planned in major cities.

10 stores already functioning in Lucknow, the Reliance was planning more stores in Meerut, Allahabad, Bareilly, Varanasi, Kanpur and Agra in coming months.

Lucknow, in fact, the only centre where the Reliance Fresh stores were opened on August 22 only to be shut down on government's order the next day.

Meanwhile, the state government had constituted a high-level committee headed by Cabinet Secretary Shashank Shekhar Singh to study the whole situation and submit its report within a month.

According to industry sources, Mukesh Ambani-led Reliance group was expected to invest Rs 5000-10,000 crore in the retail sector in UP over the next five years and the decision of the state government is likely to have an adverse ''effect'' on such plans.

UNI