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South Korean firm Posco pulls out of $5.3 billion steel plant planned in southern India

South Korean steel giant Posco says it has pulled out of a proposed $5.3 billion steel plant in southern India due to delays in acquiring land for the project.

The company says Tuesday it has scrapped the project in Karnataka state because of delays stemming from opposition to the land acquisition by local people.

However, the company says it will go ahead with a separate $12 billion steel plant in eastern Orissa state.

The proposed plant in Orissa is India's biggest foreign investment. That project too has been hit by snags in getting environmental clearances and land.

Earlier this month, the Karnataka state government returned $10 million to Posco that the company had deposited as an initial down payment for acquiring land for the steel plant.