International Olympic Committee backs Dow as sponsor

Feb 16, 2012, 10:14 GMT

New Delhi - The International Olympic Committee (IOC) has rejected the demand of Indian authorities to remove Dow Chemical Company as the sponsor of the upcoming London Olympics, a statement said Thursday.

The Indian Olympics Association has repeatedly expressed its opposition to US-based Dow as one of the sponsors for the games, because of its ownership of the Union Carbide which was responsible for the worst industrial disaster in India.

At least 3,000 people died in the gas leak from the Union Carbide plant in central city of Bhopal in 1984. Union Carbide was taken over by Dow in 2001.

In a letter to the IOA, IOC said Dow, which had an over 30-year relationship with the Olympics, was not responsible for the tragedy.

'IOC recognizes that the Bhopal tragedy in 1984 was horrific event for India and the world. The Olympic Movement sympathizes with the grief of the victims' families and regrets the ongoing suffering people face in the region,' IOC chief Jacques Rogge said in the letter.

'The IOC and LOCOG were aware of the Bhopal tragedy when discussing the partnership with Dow. Dow had no connection with the Bhopal tragedy,' he said.

'Dow did not have any ownership stake in Union Carbide until 16 years after the accident and 12 years after the 470 million dollar compensation agreement was approved by the India Supreme Court. The court has upheld this agreement twice since then, in 1991 and 2007,' the letter said.

IOC said the issue was being reviewed a third time by the Supreme Court and it was aware of Dow's position in this matter as well as sensitivities of all parties.

Senior IOA officials have rejected media reports that India could boycott the Olympics over the deal and maintained that its contigent will participate in the games.

London organizers have entered a 11-million-dollar sponsorship deal with Dow including a decorative wrap to be installed on the Olympic Stadium.

Dow has asserted it could not be linked to the tragedy as it never owned or operated the Bhopal plant and that all liabilities over the disaster had been settled before it acquired Union Carbide.

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