Kolkata, Sep 14 - The West Bengal government's decision to scrap an ambitious IT project, where companies like Infosys and Wipro were to set up units, has not gone down well with British investors, a trade official from that country said Monday.

The scrapping of the project following controversy over land acquisition has had a negative perception in the minds of British investors, UK-India Business Council chief operating officer Kevin McCole said.

'The IT sector in the city had drawn some good investments in the last few years. Now after the Vedic Village controversy, it might be difficult to draw big-ticket investments,' he said at an interactive session here organised by the Confederation of Indian Industries (CII).

'There is a negative perception among investors in the UK regarding investments in Bengal at present.'

The state government scrapped the project, proposed to come up near the luxury resort Vedic Village at Rajarhat, after allegations of irregularities in land acquisition.