Peeved by the treatment meted out to its retail venture by Uttar Pradesh and Orissa governments, Reliance Industries [Get Quote] is understood to be shelving its estimated Rs 13,000 crore (Rs 130 billion) roll out plans in the two states, putting at least 10,000 jobs at stake.

Reliance Retail planned to invest around Rs 8,000-Rs10,000 crore (Rs 80-100 billion) in Uttar Pradesh for its retail operation, including about 200 'Reliance Fresh' stores in three years as also the back-end logistic chain. However, in the wake of the state governments asking it to shut down the outlets, the company has decided to put the plans on hold, sources said.

Similarly, the company is rethinking its strategy in Orissa, where it had planned to open 14 stores in Bhubaneswar and Cuttack initially. The overall investment in the state was estimated at about Rs 3,000 crore (Rs 30 billion).

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 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.