The move will meet the long standing demand of the Netaji's INA Trust for allotment of land in "prominent area" of Delhi for construction of memorial of the freedom fighter.
"A decision in this regard has been taken by the Culture Ministry. The Ministry will allot land at the campus of IGNCA for the purpose," a Ministry source said.
IGNCA, considered a Congress legacy, was established in 1987, when Rajiv Gandhi was the prime minister, as a centre for research, academic pursuit and dissemination in the field of the arts.
Last year, Union Urban Development Ministry had written a letter to Culture Ministry to consider allotting land for setting up the freedom fighter's memorial, he added.
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The Trust had also rejected the 1.6 acres of land allocated for the purpose by Urban Development Ministry at Deen
The decision of Culture Ministry comes days after Union Minister Mahesh Sharma announced that a memorial dedicated to Netaji will be built in the national capital.
He had said keeping in view the demand of various organisations and Parliamentarian, the government has decided to built a huge memorial in his name in Delhi which will depict his life and freedom struggle.
Last month, the Modi-government had also reconstituted the management of IGNCA bringing in veteran Hindi journalist Ram Bahadur Rai as its head in place of Chinmaya Gharekhan, a former diplomat.