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LATEST NEWS UPDATES | CWG revenue is 80 p.c. less than expected

CWG revenue is 80 p.c. less than expected

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published Published on Nov 9, 2010   modified Modified on Nov 9, 2010

OC's expenditure overshot its budget by Rs. 638 crore

The OC has taken Rs. 2,307.82 crore in loan, well above the originally approved amount

M.S. Gill admits that there were no earnings from advertisements as such

The Commonwealth Games Organising Committee (OC) has fallen more than 80 per cent short of its revenue target, according to Union Sports Minister M.S. Gill.

While the OC was expected to generate Rs. 1,708 crore, it only managed to rake in a measly Rs.327 crore — just over 19 per cent of the expected figure. Mr. Gill admitted to the shortfall in response to a question in the Lok Sabha on Tuesday.

On the other hand, the OC got more money from the government than originally expected, with its expenditure overshooting its budget by Rs.638 crore.

The revenue came in from three sources. The sale of tickets generated Rs.39.17 crore. While the contracted value of sponsorship was Rs.375.05 crore, less than a third of that sum was realised, with just Rs.114.15 crore coming in so far. Similarly, only Rs.173.71 crore has been received for the sale of the international television rights, against the contracted value of Rs.213.45 crore. That does not include the Rs.23 crore withheld as tax deducted at source from the payments of Network Ten in Australia.

The OC has taken Rs.2,307.82 crore in loan from the government, well above the originally approved amount of Rs.1,813 crore. The extra amount was granted for overlays — temporary fittings and fixtures — and for timing and scoring equipment.

Low revenue figure

Mr. Gill admitted that “there were no earnings from advertisements as such.” In fact, it was Prasar Bharati that earned Rs.58 crore from advertisements during its broadcast of the Games — well below the originally projected figure of Rs.200 crore. The initially lukewarm response from advertisers as well as the decision not to air advertisements during the closing ceremony due to complaints received about the deferred broadcast of the opening ceremony contributed to the low revenue.

The number of visitors to the Games also fell short of the goal.

While the OC had estimated one-lakh visitors and 8,000 participants, the actual numbers were lower.

The number of foreign tourist arrivals in Delhi in the first two weeks of October — not all of whom were necessarily in the city for Games-related tourism — was 75,606. The total number of participants was 6,572.

Mr. Gill blamed adverse media publicity for the drop.


The Hindu, 10 November, 2010, http://www.hindu.com/2010/11/10/stories/2010111065472000.htm


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