German government firm GIZ has confirmed its decision to pull out of project to clean toxic waste from Bhopal-based Union Carbide Plant, which was the site of the world's worst gas disaster in 1984.

GIZ was to airlift the 350-tonnes of toxic waste lying deserted at the plant, and burn it in Germany for a payment of Rs 25 crore ($4.5 million). The toxic waste was resulted from chemicals discarded at the plant before the 1984 disaster, which had killed 15,000 people.

The German company held negative media coverage in Germany responsible for its decision to opt out.

Confirming the decision, GIZ regional director Hans-Hermann Dube said, "We have made an assessment of the situation in Germany and decided that it would be in the best interest of strong Indo-German cooperation not to pursue this project offer further.”

The Group of Ministers on the Bhopal gas disaster headed by finance minister P Chidambaram had assigned the task of disposing the waste to the German firm.

Even during the talks, GIZ and Madhya Pradesh government differed with each other over the issue of accountability erupting out of any fault and the ownership of the waste.

Following the refusal of GIZ to dispose the toxic waste, the centre as well as Madhya Pradesh government are once again under pressure from the court to take necessary steps at the earliest.