India failed to win the World Cup, but got to the final

"We may have lost the final but the players did the country proud in the tournament," said Jagmohan Dalmiya, president of the board.

The move comes after India had their entire share of World Cup revenue (about �5 million) withheld by the International Cricket Council (ICC).

The players refused to sign away personal endorsement and image rights during the tournament but have been backed to the hilt by their board.

Dalmiya said: "We have decided to honour all the 15 members of the squad by giving out bonuses worth US$2.5m to them.

Contracts renewed

"The support staff of the team like the coach, physiotherapist and physical trainer will also receive separate bonuses."

The BCCI said it will hold off taking unilateral action against Global Cricket Corporation (GCC), the body making damages claims against the ICC.

"The ICC is dealing with the claims made by GCC and the matters being disputed are contractual matters," said ICC president Ehsan Mani, who had held discussions with Dalmiya over the issue.

"On that basis, I have agreed with Mr Dalmiya that the BCCI will not make any claims against GCC or initiate any investigations into its marketing activities at the present time."

Meanwhile, the contracts of coach John Wright and physiotherapist Andrew Leipus have been extended until September 2004.

And South African Gregory Allen King has been confirmed as the team's physical trainer in place of Adrian Le Roux.

Le Roux resigned last month to take charge of the South African team.

And India have announced a two-Test series against New Zealand in October.

The northern Indian towns of Mohali and Kanpur will host the Test matches.

India, New Zealand and Australia will also play in a tri-series in October and November.