(Reuters) India will decide by mid-February whether to bid for the third edition of the biennial 'mini World Cup' tournament which includes all the Test-playing countries.
"Unless we get tax exemption, we won't be able to host the event and the chances don't look bright," Board of Control for Cricket in India (BCCI) secretary Niranjan Shah said.
But Shah denied media reports that India had withdrawn from the bidding.
"We have to reply in February. The government has not officially told us there will be no tax exemption, so nothing is final," Shah said.
The Indian board had sought tax exemptions for the tournament and International Cricket Council (ICC) president Malcolm Gray had met federal sports minister Uma Bharti last year to discuss the issue.
"A decision on who will host the event will be made by the ICC at its executive board meeting in March at Colombo," Shah added.
The first edition of the tournament was held in Dhaka in 1998 and the second in Nairobi in 2000.
India's hopes of hosting the ICC Knockout one-day tournament in September are fading with the government unlikely to provide financial relief for the event, a cricket board official has said.
