Now Moody's doubts India's preparedness for hosting CWG

After Commonwealth Games Federation chief Michael Fennell, Moody's today raised doubts about the preparedness of India to host the mega sports event next year, saying the economic downturn and drought may have impacted various projects.

"India hosts the 2010 Commonwealth Games, but its preparation has been slower than desired. Although the event is only a year away, construction of some venues is still incomplete," Moody’s Economy.com, the research arm of global rating agency Moody's, said in a statement.

"The global economic turmoil may have taken a toll on India's preparations," it added.

Explaining further, the firm said delay in constructions may have been due to relocation of funds to meet the need of areas crucial for sustaining social stability, battered by the economic downturn.

"The drought has further complicated policy making, putting social spending a clear priority over enhancing the appeal of New Delhi. Liquidity and capital constraints have crippled firms of all sizes over the past two years," it said.

Fennell, had earlier warned India that delays in its preparations for the 2010 Games are putting the success of the event in jeopardy. He had also written to prime minister Manmohan Singh seeking his intervention in putting things in order.

However, Delhi chief minister Shiela Dixit had said her government will not let the Commonwealth games to suffer.

Fennell had written to 2010 CWG Organising Committee chairman Suresh Kalmadi, "I'm looking forward to some urgent action in order to bring about the successful celebration of the Games in 2010... 

"Our concerns are such that unless there is a significant change in the management culture and operation of the organising committee these Games will fail from an operational perspective."

Shiela Dixit later said, "We are monitoring transport carefully, we are also looking for alternatives. But, there may be things we are unable to complete on time... So, we will not, from our side, let the Commonwealth games suffer."

However, Moody's said, the games could be a good opportunity for the country's tourism sector, which in turn could benefit the retail and hospitality industry as well as garner foreign interest.

"If India can take advantage of the upcoming opportunity to showcase its recent development and growth potential to the world, hosting the event may help to generate interest from foreign investors and benefit India in the medium term. As various parts of the global economy recover, international travel should pick up," Moody's Economy.com said.

The timing of the event-- at a time when the global economy and consumer sentiments will be on a stronger recovery path--certainly helps India in maximising gains from playing host, it added.