The government, amid the ever-present Ram Janmabhoomi debate, is now planning the statue not far from the disputed Ram Janmabhoomi-Babri Masjid site.
State officials have told The Indian Express that the statue is proposed at a height of 100 metres, but it is not final and will depend on approval from the National Green Tribunal.
A government communique said that the statue will be built after securing permission from the National Green Tribunal.
Following a state Cabinet meeting, BJP spokesperson Dr Siddharth Nath Singh said the state government has signed an agreement with cooperative banks to waive 12.61 lakh farmers' loans and reactivate their bank accounts, which were earlier frozen due to loan default.
According to a presentation made before Governor Ram Naik by UP's Principal Secretary, Tourism, Awanish Kumar Awasthi, apart from the Lord Rama statue, the state government will renovate ghats, including Guptar Ghat, where Lord Rama had taken "Samadhi", build police booths, install CCTV cameras, construct guest houses for tourists and auditorium at Digamgar Akhara.
He said a presentation was made before him in Lucknow regarding the governments plan for the development of Ayodhya in order to promote tourism there.
Next week, the chief minister going to Ayodhya with all his ministers to celebrate Diwali festival.
It is home to one of the world's most iconic monuments, but Uttar Pradesh isn't counting only on a spectacular Mughal-era mausoleum to bring in tourists. Thousands of diyas will be lit across Ayodhya and Chief Minister Yogi Adityanth will lead a procession through the streets of Ayodhya, better known as Ram's birthplace. The Centre has already approved and given Rs. 133.7 crore to the State. The party vowed to build Ram Temple in Ayodhya in its election manifesto during UP elections. "I will also invite the governor for this", Adityanath had said recently in Gorakhpur.