South Korea’s Pohang Iron and Steel Company (POSCO) is planning to set up a steel plant with an investment of INR320bn ($7bn) in Karnataka, India.

The company will set up the six million-ton plant in Halligudi, Gadag district, reports The Economic Times.

POSCO has made an initial deposit to the Karnataka Industrial Development Board for the acquisition of 12km2 of land, on which the plant will be built.

The company has also applied to the government for an iron ore mining lease.

POSCO recently received environment ministry clearance to set up another steel plant, worth $12bn, in Orissa, India.