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The Union government on Friday decided to bear the expenses for bringing home from Britain the body of Indian student Anuj Bidve, who was shot dead by a gunman in Manchester earlier this week.
External Affairs Minister S M Krishna also has approved the proposal to meet the return expenses of the travel of the family members of Bidve, sources said.
They said the government will also incur expenses regarding transportation of his body to India.
Anuj Bidve, 23, was shot dead by a gunman on Boxing Day while on Salford Street, where local residents and leaders expressed disgust over the incident.
The sources said the Lancaster University where Bidve was studying has also agreed to return the tuition fees to the family.
Five students have so far been arrested by British police in connection with Bidve's killing.
A 20-year-old man was the fifth person arrested by police on Thursday.
The Indian High Commission in the UK had assured all possible help in expediting the process of repatriation of Bidve's body to India.