Country’s largest power producer NTPC is likely to restrict its sponsorship deal for Commonwealth Games to Rs 20 crore, dealing yet another blow to the tainted games.The organising committee of Commonwealth Games is struggling to tide over the huge funds crunch. The public sector power major had signed a `50-crore sponsorship deal for the games and has already paid `20 crore. But with the games getting a lot of negative publicity over allegations of corruption and reports that portions of sponsorship money may also be used to pay commission to marketing agencies, the company is having second thoughts about the remaining `30 crore.
“NTPC is a listed entity answerable to its shareholders. We cannot be seen associated with an event that has generated such negativity,” said a senior NTPC official, who did not wish to be identified. NTPC had earlier indicated that it could consider full contribution towards sponsorship if the CWG organising committee gave a written assurance that the payment will be used only for the upliftment of the games.
While the company retains the stand, internally, it has decided to be less visible during the games to prevent its own brand image. “The company board will soon meet to reverse the sponsorship deal for CWG and restrict our contribution to what has already been made,” the official said, adding that internally there was consensus in this regard.
The company has already decided to drop the use of the event logo from all its internal and external communications. It has also sought lesser visibility for the organisation during CWG, except at a few events where India is expected to do well.
NTPC had decided to sponsor the games in December last year when it had entered into an MoU with the organising committee. It had hoped that the `50-crore campaign would help build a strong brand image for the company before an audience that could also be potential business partners for the company. Common wealth countries include Australia, New Zealand, Canada and several other African countries. NTPC has been looking for coal resources and gas deals in some of these countries without any success so far.
NTPC’s hard stance comes as other PSUs such as Power Grid Corporation and the Railways are also thinking of either cutting down the sponsorship money or withdrawing completely. Some other PSUs, which were earlier planning to link with the games, are now having second thoughts to sign any sponsorship deals.
“NTPC is a listed entity answerable to its shareholders. We cannot be seen associated with an event that has generated such negativity,” said a senior NTPC official, who did not wish to be identified. NTPC had earlier indicated that it could consider full contribution towards sponsorship if the CWG organising committee gave a written assurance that the payment will be used only for the upliftment of the games.
While the company retains the stand, internally, it has decided to be less visible during the games to prevent its own brand image. “The company board will soon meet to reverse the sponsorship deal for CWG and restrict our contribution to what has already been made,” the official said, adding that internally there was consensus in this regard.
The company has already decided to drop the use of the event logo from all its internal and external communications. It has also sought lesser visibility for the organisation during CWG, except at a few events where India is expected to do well.
NTPC had decided to sponsor the games in December last year when it had entered into an MoU with the organising committee. It had hoped that the `50-crore campaign would help build a strong brand image for the company before an audience that could also be potential business partners for the company. Common wealth countries include Australia, New Zealand, Canada and several other African countries. NTPC has been looking for coal resources and gas deals in some of these countries without any success so far.
NTPC’s hard stance comes as other PSUs such as Power Grid Corporation and the Railways are also thinking of either cutting down the sponsorship money or withdrawing completely. Some other PSUs, which were earlier planning to link with the games, are now having second thoughts to sign any sponsorship deals.
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