Karnataka ends land acquisition for luckless Posco

Korean steelmaker Posco's Indian foray seems to be thoroughly jinxed.

Even as its mega project in Andhra Pradesh remains stalled due to local opposition despite finally getting environmental clearance, neighbouring Karnataka too has decided to stop trying to acquire land for the company's steel project in Gadag district.

Amid stiff resistance by local farmers to the acquisition of a proposed over 3,000 acres of land at Halligudi in Gadag district for the project, the state government on Wednesday decided to shift the project and drop the land acquisition process there.

Local farmers have been protesting against the acquisition of land for the mega plant for over a month now. The protest had intensified over the last fortnight as opposition political parties latched on to the cause.

''The land acquisition process for Posco plant in Gadag district has been dropped.

"The state government will not acquire any land from farmers forcibly. Being a farmer's son myself, I have a great concern for farmers. Considering the opposition from farmers, we decided to stop the land acquisition process with immediate effect,'' Karnataka chief minister B S Yeddyurappa announced in New Delhi before returning to Bangalore.