Posco for Karnataka Pullout

Posco for Karnataka Pullout

South Korea's Posco confirmed its withdrawal on plan to build a steel plant in India's Karnataka state with its failing to secure land and infrastructure due to local opposition.

Delays in securing mining rights as well as opposition to the project led the company to drop the project, an initial agreement was to build the $5.3 billion facility in the southwestern state in June 2010.

The Wall Street Journal reported the decision Monday, citing people familiar with the matter.

For the Indian government, trying to woo foreign investment to boost its economy, Posco's decision is a setback, as it confounds the message officials are trying to relay to potential investors.
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