A German firm has backed out from talks with India to remove 350 tons of toxic waste from the central Indian city of Bhopal, which was subjected to a huge industrial disaster in 1984.

German company GIZ said in a statement Tuesday that the soil of Bhopal was contaminated with insecticides which were not related to the gas leak which killed thousands of people and handicapped thousands more.

The Indian government approved in June this year the removal of toxic waste at the cost of 250 million rupees (about 5 million U.S. dollars) by GIZ, which is a famous institute for clearing toxic pollution of land.

GIZ formally withdrew its waste disposal offer on Monday after negotiating with the Indian government for three months.

The company backed out following protest from the civil society in Germany. "This uncertainty extended to the German public. Hazardous waste disposal through GIZ is no longer an option," the company said in a statement.