Sources said the Ministry is in touch with all stakeholders to obtain the latest status of the ambitious programme and will subsequently put it before the Cabinet Committee on Security (CCS) for extension of timeline beyond March 2015.
"No new funds will be sought from the government but only more time. That would be done soon as the last time the Cabinet did not clear an extension for the project," the sources said.
Home Ministry officials had then said the government wanted to examine whether Rs 2,000 crore allocated in 2009 for the project was enough.
In the 2015-16 budget, Finance Minister Arun Jaitley had not allocated any funds to CCTNS, conceived by former Home Minister P Chidambaram after the 2008 Mumbai terror attacks.
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In the 2013-14 budget, Rs 120 crore was earmarked for CCTNS while Rs 37.23 crore had been given in 2012-13 budget.
The Rs 2,000-crore project, approved in 2009, spans across all the states and Union Territories. As per the plan, it would connect a total of more than 21,000 locations.
The CCTNS would be a comprehensive database for crimes and criminals, and it would be easier for the law enforcement agencies to track down a criminal moving from one place to another.
The project aims at creation of a nation-wide networking infrastructure for evolution of IT-enabled sophisticated tracking system around "investigation of crime and detection of criminals".