Friday, August 6, 2010

DD refutes Kalmadi's claim on free commercial time

In a fresh controversy involving Indian Olympic Association President and Chairman of Commonwealth Games Organising Committee (CWG OC) Suresh Kalmadi, India's national broadcaster- Prasar Bharti - has rebutted the claim that it has committed free commercial time for the games.

In a letter written to the Organising Committee, Prasar Bharti (PB) on May 15 refuted Kalmadi's claim. The letter indicates that no agreement was reached between the OC and its public television broadcaster division, Doordarshan (DD), on free commercial time (FCT).

"Providing any commercial time free of cost would be against the norms and it will be difficult for DD to account for the same in the books..." the letter states.

Kalmadi had claimed that 75,000 seconds of FCT, worth Rs 75 crores, was committed by DD. The letter however suggests that instead of FCT, a revenue sharing model for commercials was reached between the two. In fact, the agreement clearly states that out of the revenue earned, the OC would get to keep 60 per cent and the rest 40 per cent would go to PB.

"We have been suggesting that the OC may like to use as much of commercial time it could and the same would be computed as per DD's rate card," it adds.

In his appeal to the Prasar Bharti, Kalmadi had sought free time so as to be able to repay the government's loan.

"The sponsorship programme of the Organising Committee has been envisaged for colleting revenue to help repay the loan advanced by the government for the conduct of the Commonwealth Games..." wrote Kalmadi.

However, in its reply, DD has dismissed Kalmadi's contention.

"Your contention that the OC would not get money from clients but receive services and kinds from various sponsors doesn't justify off-loading them on DD Air Time as we have to account for each and every second of commercial to the audition authorities..." it says.

The latest controversy adds to the problems facing the Organising Committee Chief who is already under the scanner for alleged irregularities and mismanagement in the organisation of the Commonwealth Games 2010.

According to sources, the controversy has created a lot of confusion among the sponsors are feeling very unsure as to whether they should book their slots or not.

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