Private firms to the rescue as PSUs pull out of CWG
20 Aug 2010
The scandal-hit Commonwealth Games in New Delhi got a further setback with public sector power corporations National Thermal Power Corp Ltd and Power Grid Corp of India Ltd deciding to hold back further release of funds for sponsorship of the event.
The NTPC, which has given Rs20 crore out of its total commitment of Rs50 crore for sponsorships, has decided to hold back release of any further money.
The board of India's biggest power generator, at a meeting on Wednesday, ''decided to stop any further payments for the sponsorship of the CWG 2010'', company chairman and managing director R S Sharma said. It also sought a professional audit by a government-appointed agency of the sum paid by the company.
Similarly, PGCIL, which had committed a sponsorship of Rs10 crore, has decided not to release any more funds in view of mounting allegations of financial wrong-doing. Central Bank of India has contributed Rs50 crore to the games.
The action follows instructions from heavy industries and public enterprises minister Vilasrao Deshmukh, who said on Thursday that his ministry has asked PSUs to hold back sponsorship money totalling up to Rs260 crore for the event.
''We have already asked PSUs to hold on. Instructions were issued by DPE (department of public enterprises) secretary to hold on (to) the funds,'' Deshmukh said. He added that his ministry had said if the PSUs want to contribute they could. ''(But) after this controversy now I think no PSU is going to contribute,'' he added.