The Union Finance Ministry recently extended by two years a provision under 35ac of the Income Tax Act that will enable the academy's managing trust to collect funds over a two year period.

As per the provision (deduction in respect of donation to certain funds, charitable institutions etc.), contributions to the academy will be exempted from tax.

Initially, the finance ministry had made a provision of Rs 4.4 crore for three years, but has now raised it to Rs 16.00 crore and extended for another two years, according to the government notification to the corporation area basketball trust's managing trustee, Janak Gandhi.

Work on the basketball complex, coming up on a four-acre plot allotted by the Madhya Pradesh Government, is being built at Indore's Race Course Road. The academy became operational in 1995, but stopped functioning within a year due to lack of funds.

The latest government step is expected to help the trust complete all work on the air-conditioned indoor stadium and dormitory and function to its capacity of 25 boys and as many girls.