PSUs may not contribute funds for CWG
PSUs may not shell out more funds for the CWG 2010 following corruption charges, an official said.
New Delhi: With charges of corruption against some key officials of organising committee of the Commonwealth Games doing the rounds, wary PSUs may not shell out more funds for the October sporting event, an official said.
"I think there is no likelihood of money flowing from the Central pubic sector units now," a top government official said.
The corruption allegations began with a Central Vigilance Commission report which pointed out financial bunglings in handing of construction and other contracts.
Central Bank of India has already contributed Rs 50 crore to the Games, while NTPC, which had committed Rs 50 crore, contributed Rs 20 crore in February and rest is yet to be released.
Similarly, the Indian Railways too has made a budgetary provision of Rs 100 crore. Sources said it has now sought clarifications from the Organising Committee about the usage of the funds.
In fact, before corruption charges surfaced, the Department of Public Enterprises had written in June a letter to top-performing Maharatnas and Navratnas, asking them to make generous contributions to the Games, beginning October 3.
It had said the CPSEs should volunteer to help the CWG as a part of their corporate social responsibility.
The official said the "goings-on" in the CWG have shaken the confidence of the PSUs, which otherwise would have helped the Games as a matter of national pride.
"But now the situation has completely changed and the government-owned companies would like to be cautious about their funds," he added.
The CWG organising committee had a budget of Rs 1,600 crore which it had obtained from the government and had promised to return by earning sponsorships, television rights and ticket sale. In the absence of sponsors, it is likely to fall quite of short of covering its budget.
Air India, the official carrier of the CWG, has chipped in with tickets for officials and players as part of its contribution to the event. The airline`s contribution in kind -- tickets and chartered flights -- is estimated to be Rs 50 crore in money terms.