| Cabinet grills Gill on higher fund demand for Games | |
| Saubhadro Chatterji / New Delhi November 6, 2009, 0:26 IST | |
Sports Minister M S Gill had to face some tough questioning by his cabinet colleagues today as he sought additional funds for Commonwealth Games (CWG) preparation.
Though apprehensions were raised about how the additional money would be mobilised and how efficiently it would be spent, the cabinet approved the proposal to extend a soft loan of Rs 1,620 crore to the Games Organising Committee, which is more than double the originally approved amount of Rs 767 crore.
The organising committee is expected to generate revenue of Rs 1,708 crore from the games. The expenditure and revenue numbers are far from what had been indicated in the original bid document for the 2010 Commonwealth Games.
The approval was given with the provision that the Cabinet will hold a special review meeting to take stock of the preparedness of the CWG.
Cabinet members raised apprehensions about the increasing size of the games budget and wanted an assurance that this would be the final increase in outlay, sources said.
The games preparation is being led by the Organising Committee which is headed by Suresh Kalmadi.
After the Youth Affairs and Sports Minister M S Gill gave a detailed speech about why additional money is required, Road Transport minister Kamal Nath was the first one to raise questions about the size of the budget.
Nath also wanted to know if he would get additional fund for improving roads in various parts of Delhi or he has to divert funds earmarked for other projects for building the CWG infrastructure.
Commerce and Industry Minister Anand Sharma made a case for more cohesion among various government departments working on CWG to “put up a great show.”
The Prime Minister has already given categorical instructions that whatever resources are required, they have to be given to make the 2010 CWG a “spectacular show”.
After Nath and Sharma raised questions about the preparedness of the games, Finance Minister Pranab Mukherjee stepped in and assured them of a special review meeting in the cabinet later on this issue.
Gill’s proposal said various factors had accounted for a revised estimate. New items have been included which are essential for the successful delivery of the Games like accreditation, city operations, sponsorship and TV rights,security, sustainability & environment, and ticketing.
| COMMONWEALTH GAMES SURPLUS? |
| Projected expenditure |
(in $ million)
|
| Capital expenditure |
210.12 |
| Major repairs and maintenance expenditure |
23.23 |
| Other incidental expenditure |
33.30 |
| TOTAL EXPENDITURE |
266.65 |
| Means of finance |
| Grants |
115.07 |
| Sale of residential flats |
106.00 |
| Surplus from operating the Games |
45.58* |
| Total |
266.65 |
|
*Revenue from the conduct of the Games is estimated at $186.59 million through sponsorship fee, sale of broadcasting rights and ticket sales while Games operating expenses are estimated at $141.01 million, leading to a surplus of $45.58 million.
Source: Indian Commonwealth Games Bid Document
|
There is cost escalation in respect of accommodation, catering, opening and closing ceremonies, protocol, Queen’s Baton Relay (QBR) and rent for office of the organising committee, among others.
“The components of rent for OC Headquarters, and “technology” which were practically ‘nil’ in the initial budget are now around Rs 175 crore and Rs 200 crore, respectively”, said the cabinet note.
After the meeting, another cabinet minister emphasised that there is need to hold an overall review meeting as ministries like Health and Home Affairs have a major role to play too.
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