On a bad day for organizers, Australian swimming great Dawn Fraser also advised her compatriots to consider boycotting the event as she feared the security situation in the country could turn the Games into "another Munich."

The Games, through which India hopes to showcase its growing global clout, is relying on state-run firms for sponsorship as private companies have largely stayed away.

However, country's biggest power producer, NTPC Ltd., has decided to scrap its 500 million rupees ($11 million) sponsorship deal and is seeking an audit of the 200 million rupees it has already paid.

"Our board has decided not to go ahead with the sponsorship because of the negative publicity," NTPC Chairman and Managing Director R. S. Sharma told Reuters on Thursday.

State-run transmission utility Power Grid Corp of India  has also decided to back out of its 100 million rupees commitment to the Games, its Chairman S. K. Chaturvedi said.

A spokesman for the Games organizing committee was not immediately available for comment.

Struggling to get the venues ready before athletes start arriving next month, the Oct. 3-14 Games is also facing serious corruption charges, which has led to the suspension of three senior officials [ID:nSGE6740HY], while the treasurer has quit following a contract row.
 

The event, the cost of which has risen more than 17.5 times over its initial estimates, lost its merchandising partner last week when the Indian company pulled out citing an inordinate delay in launching the products.

A government anti-corruption agency has identified 16 Games projects where large-scale irregularities are suspected while the state audit agency questioned the process followed in engaging some of the consultants.

With the event threatening to become a national embarrassment and tarnishing the image of the ruling Congress party, Prime Minister Manmohan Singh has ordered probes into the corruption charges after a stock-taking meeting on Saturday.

Congress Chairperson Sonia Gandhi on Thursday echoed Singh's views in her address to the party parliamentarians.

"The success of the Games is that of our country — not of any party or any individual...The prestige of the nation is involved," she said.

"I trust that as soon as the Games is over, the government will look into the allegations of malpractice and spare no one found to be involved in them."

Commonwealth Games Federation (CGF) President Michael Fennell, however, rejected Fraser's security apprehensions, saying the former Australian swimmer was not informed enough to make such an observation.

Fraser told Australia's Herald Sun newspaper she was apprehensive about Delhi's security arrangements and feared Delhi might see a repeat of the 1972 Munich Olympic attacks, when 11 Israeli team members were taken hostage and killed by Palestinian gunmen.

"We have to respect her freedom of speech but I think she is not sufficiently informed to make such a statement," Fennell told reporters after wrapping up his two-day visit to inspect the venues.

"In any international event, security has to be top class. Recently... we reviewed all the security aspects and the conclusion... was really heartening."

Since the attack on the Sri Lankan cricketers in Lahore, Pakistan last year, security of sporting events has become a piquant issue.