Reliance in dilemma over opening retail outlets

It has also put Rs 1,200-cr investment plan in Uttarakhand's agriculture sector on hold.

After quitting Uttar Pradesh, Mukesh Ambani-led Reliance Industries Ltd (RIL) appears to be in dilemma over its planned RelianceFresh outlets in Uttarakhand and its proposed Rs 1,200-crore investment in the agriculture sector of the state.

Top officials in the state government said RIL was expecting Uttarakhand to enact Agriculture Produce Marketing Committee (APMC) Act which would give it direct access to mandis.

"The APMC Act may be one of the reasons for the company not to open its outlets in our state," an official said.

The company has put its plan of Rs 1,200-crore investment in the agriculture sector also on hold, the official said.

In September, Reliance faced stiff opposition from local green grocers and wholesalers for venturing into retail business in the state. Vegetable mandis and vendors in Uttarakhand had remained closed for a day protesting against what they called "invasion" of the RIL into their daily business.

Traders under the aegis of Uttarakhand Vegetable and Trade Association had submitted a memorandum to Chief Minister BC Khanduri calling for a ban on entry of organised retail business in the state. Traders had also threatened to launch a massive agitation if the government allowed the retail outlets open shops in the state.

RIL has plans to open four RelianceFresh outlets in Dehradun. The company planned to further open more outlets in the state.

When contacted, the state agriculture minister, Trivendra Singh Rawat, said he had no information as to why the RIL was not opening its outlets in the state.