Kalmadi cut to size

Games scam: PSUs pull out Rs 260 crore

The once-powerful Kalmadi saw the power slipping from under his feet as the Manmohan Singh government appointed a committee of senior bureaucrats to oversee all pending Games-related projects. The panel of IAS officers virtually takes direct charge.

Besides power, Kalmadi also saw during the day a loss of Rs 260 crore in sponsorship money. Some major public sector undertakings (PSUs) withdrew their sponsorships in an indication they would have nothing to do with a sporting event now steeped in controversies, including serious charges of corruption and favouritism.

Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh said his ministry has asked PSUs to hold back sponsorship money totalling Rs 260 crore for the event. “We have already asked the PSUs to hold on. Instructions were issued by DPE secretary to hold on (to) the funds,” Deshmukh said.

There was a threat of more trouble for Kalmadi––a threat that might become real soon after the conclusion of the mega sporting event in October.

Congress party chief Sonia Gandhi said at a party meeting during the day that those found guilty (of irregularities in the CWG) would be punished after the Games were over.
 The Centre’s decision to appoint the panel was being interpreted in political circles as a clear sign of no-confidence against Kalmadi.

Individual members of the panel would be assigned particular stadium to ensure that all pending work was completed in time for the Games. Negative publicity in the wake of alleged charges of private-political nexus hugely impacted the image of the CWG as major national and international brands refused to be identified with the Games.

Besides corruption and running woefully behind schedule in infrastructural preparations, the CWG is already desperately seeking major sponsorships to breakeven the expenditure incurred.

The Railway Ministry had recently held back the Rs 100 crore promised to the CWG and would release the amount only after receiving “clean details” of the intended expenditure.

Two top power PSUs, NTPC and PowerGrid Corporation of India, which would have invested around Rs 60 crore in the sponsorship programme for CWG, have decided to pull out.

National Thermal Power Corporation (NTPC), India’s largest power generation utility had already invested Rs 20 crore in February out of the committed Rs 50 crore sponsorship deals and Power Grid, which had committed Rs 10 crore have pulled back from the sponsorship offer.NTPC has also sought to have a government agency do the audit of Rs 20 crore that has already been spent by the CWG.

“Our board met and decided not to give the remaining money to them. The Games logo stands dropped from all our communications. We need an audited account of the Rs 20 crore we gave them to show us how the money was spent,” NTPC Chairman and Managing Director R S Sharma said.