Courtesy Karnataka Government, Hero Honda will set up its new plant in the Dharwad district in the land of 500 acres. The initial capacity of the plant will be 1 lakh units employed by 1000 persons. This is in addition to the speculation that the Korean steel maker Posco would stall its plant in the state at an investment of Rs32000 crore. TVS is also in the picture of negotiations for an engineering manufacturing unit in the state of Karnataka.