In what will be a big blow to global multi-brand retailers making them even more wary about investing in India, the Delhi government has decided not to allow them to set up outlets in the capital.

The New Year has begun well for Posco India, reviving its dream of setting up a mega steel project in the state of Odisha.

According to sources close to the company, a crucial revalidation of its environmental clearance has been granted. The company had resized its plans in 2013 because of the stiff opposition it faced over a land acquisition in the coastal district of Jagatsinghpur, 10km south of the port town Paradeep, to a smaller plant of 8 mt. In 2013, the Supreme Court had given a favourable judgement clearing the way for the Centre to proceed with allocation of the iron ore mine recommended for the company’s project.

South Korean steel company Pohang Steel Company (Posco) has sought Cabinet Secretary Ajit Kumar Seth’s intervention in renewing the green clearance for its project in Orissa.

Joon-gyu Lee, South Korea’s ambassador to India, on Monday said the foundation stone for Posco India’s 12-million-tonne steel project in Orissa is likely to be laid early next year. He added that the president of South Korea might do the honours.

“The state government has successfully completed land acquisition for the project. I hope everything will be ready for construction to begin,” he said.