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| South Korea's Posco scraps India steel project after delays | South Korea's Posco scraps India steel project after delays |
| (about 2 hours later) | |
| South Korean firm Posco says it has scrapped a proposed steel project in the Indian state of Karnataka after delays and local opposition. | South Korean firm Posco says it has scrapped a proposed steel project in the Indian state of Karnataka after delays and local opposition. |
| The company said it had dropped the $5.3bn (£3.5bn) project in the state's Gadag area after protests against the acquisition of land for the plant. | The company said it had dropped the $5.3bn (£3.5bn) project in the state's Gadag area after protests against the acquisition of land for the plant. |
| The decision is a blow to India's efforts to attract foreign investment. | The decision is a blow to India's efforts to attract foreign investment. |
| But Posco is proceeding with a planned $12bn plant in eastern Orissa state, which has faced similar protests. | But Posco is proceeding with a planned $12bn plant in eastern Orissa state, which has faced similar protests. |
| The firm blamed its decision to pull out of Karnataka on "the significant delay in the project and inability to get land in Gadag". | The firm blamed its decision to pull out of Karnataka on "the significant delay in the project and inability to get land in Gadag". |
| "Progress on land acquisition was held back due to agitations by some farmers and religious leaders," the firm said in a statement, which made clear that land acquisition talks had come to a halt as far back as July 2011. | "Progress on land acquisition was held back due to agitations by some farmers and religious leaders," the firm said in a statement, which made clear that land acquisition talks had come to a halt as far back as July 2011. |
| Posco and Karnataka had signed the agreement three years ago and the plant, when completed, was to produce 6 million metric tons of steel a year with iron ore to be mined locally. | |
| Earlier this month, the state government returned $10m (£6.6m) to Posco that the firm had deposited as an initial payment for acquiring land for the plant. | |
| Posco, however, said it may consider returning to Karnataka "in future, if we get an attractive business proposal from the state". | |
| The much larger Posco project in Orissa has also faced stiff opposition from local people campaigning to save farmland and woodland. | The much larger Posco project in Orissa has also faced stiff opposition from local people campaigning to save farmland and woodland. |
| But the land acquisition for the project has been completed, and the plans to build the plant are on track. | But the land acquisition for the project has been completed, and the plans to build the plant are on track. |
| The Orissa plant, which will be based in the port city of Paradip, was conceived in 2005 and is India's single biggest foreign investment. | |
| It is expected to create nearly 50,000 jobs. |