Lucknow, June 10 -- Varanasi's growing importance on the global Buddhist tourism map received another boost on Wednesday as Uttar Pradesh and the Royal Government of Bhutan signed an agreement for the development of a Bhutanese temple and pilgrim guest house near Sarnath, adding a new international dimension to the state's efforts to position itself as a leading Buddhist destination.

The project, coming up on nearly two acres of land provided by the Uttar Pradesh government on a 30-year lease at a nominal annual rent of Re1, is expected to serve Bhutanese monks, pilgrims, and visitors travelling through the Buddhist circuit.

Officials believe it could also encourage greater international pilgrim movement to Sarnath, where Lord Buddha deli...