In written reply to a question in the House, Tourism Minister K Chiranjeevi said the Japan International Cooperation Agency (JICA) took the decision after inspecting some project sites in July last year.
"After inspection of some of the project sites in July 2012, JICA had conveyed that ground realities have changed since signing of the loan agreement in 2005 and continuation of the project would not be possible since implementation of the proposal would have enhanced adverse impact on environment and society," the minister said.
JICA also noted that the project would require compliance under a different category, he said.
"In view of the above observation of JICA, it has been decided to discontinue and drop the Uttar Pradesh Buddhist Development Project," Chiranjeevi said.
The Loan Agreement was signed between Indian Government and JICA in March 2005 for implementation of Phase-II of the Project at a total cost of JPY 9495 million (approximately Rs 396 crore).
The minister was replying to a question on the present status of the project and the time by which it is likely to be completed.
New Delhi: Observing that implementation of Baudh Paripath Project in Uttar Pradesh could have adverse impact on environment, Japan has decided to discontinue its loan agreement worth around Rs 396 crore for it, the government told the Lok Sabha on Friday.
First Published: Friday, March 22, 2013, 15:25