PT Usha Defends IOA’s Actions Amid Controversy with Reliance Industries
The Indian Olympic Association (IOA) has denied reports of a Rs 24 crore loss due to alleged undue favors to sponsor Reliance Industries Limited (RIL). IOA President PT Usha clarified that there was no financial loss, attributing the issue to a flaw in a 2022 Request for Proposal (RFP) by the previous IOA management. The RFP awarded naming rights for a National Olympic Committee (NOC) House to RIL, the highest bidder, without including a necessary clause about International Olympic Committee (IOC) guidelines.
In June 2023, the IOC issued new guidelines prohibiting sponsors from acquiring naming rights for NOC Houses at the Paris 2024 Olympic Games. Despite IOA’s efforts for exemptions, the IOC’s decision stood, affecting all National Olympic Committees (NOCs). Consequently, RIL sought to renegotiate the terms, proposing a 50% reduction in the hosting fee due to the loss of naming rights.
The IOA considered three options: terminate the agreement, accept a reduced fee, or renegotiate to maintain the original Rs 35 crore hosting fee. They chose to renegotiate, adding events like the 2026 and 2030 Winter Olympics and Youth Olympic Games, which offer less visibility than the Summer Olympics or Asian Games.
PT Usha refuted claims by Sahdev Yadav in the CAG report, asserting that the renegotiation was communicated to the IOA Executive Council. The proposal was shared with council members and discussed with the Sponsorship Committee, led by Rohit Rajpal. Legal guidance was provided by Nandan Kamath of NK Law, Bangalore.
Usha expressed surprise at the termination of Kamath’s services by the IOA’s Finance Committee and Treasurer. She emphasized that all decisions were made in the best interest of the IOA and Indian athletes, ensuring no financial loss. Usha warned against misleading the public or undermining the IOA’s efforts, stating that legal action would be taken if necessary.
Doubts Revealed
PT Usha -: PT Usha is a famous Indian athlete known for her speed in running. She is often called the ‘Queen of Indian track and field’ and has won many medals for India.
IOA -: IOA stands for the Indian Olympic Association. It is the organization responsible for selecting athletes to represent India in the Olympics and other international sports events.
Reliance Industries -: Reliance Industries Limited (RIL) is a large company in India that works in many areas like energy, petrochemicals, textiles, and telecommunications. It is one of the biggest companies in India.
Rs 24 crore -: Rs 24 crore is a large amount of money in Indian currency, the rupee. It is equal to 240 million rupees.
Request for Proposal -: A Request for Proposal (RFP) is a document that organizations use to ask for bids from companies to complete a project. It outlines what the organization needs and invites companies to propose how they would meet those needs.
International Olympic Committee -: The International Olympic Committee (IOC) is an organization that oversees the Olympic Games. It sets rules and guidelines for how the games are run and how countries can participate.
Naming rights -: Naming rights refer to the right to name a venue or event, often in exchange for money. Companies pay to have their name associated with sports events or stadiums to promote their brand.
Executive Council -: The Executive Council is a group of people who make important decisions for an organization. In the IOA, it includes members who help guide the association’s actions and policies.