The International Olympic Committee (IOC) has reportedly rejected India's protest and has backed Dow Chemical's sponsorship for the 2012 London Olympics.
Dow Chemicals, which signed an agreement with the IOC in July last year, is the company which took over Union Carbide, responsible for the 1984 Bhopal gas tragedy that killed over 15,000 people and disabled lakhs.
The company's sponsorship deal has led to outrage among victims of the Bhopal gas tragedy. They have demanded that India pull out of the Games. Former Indian Olympians have also come out in protest.
But according to a report on Telegraph.co.uk, IOC president Jacques Rogge has sought to distance his organisation from the dispute. "Definitely, we respect a lot the emotion in India because this is a horrific catastrophe. While we understand the emotions and the grief, one has to say that Dow Chemical was not involved in the Bhopal issue," Mr Rogge has reportedly said.
According to the report, Mr Rogge has also urged Indians to desist any calls for a boycott saying such action could hurt Indian sports. "We have advised the Indian Olympics Association (IOA) to enter into a dialogue with their athletes and this is what they will do. I would hope the interest of sports and interest of the athletes will prevail," he said.
In a letter to the Prime Minister's Office (PMO) on December 3, the Ministry of External Affairs had said that the company's sponsorship was a very sensitive issue and that there was strong public opinion against it. The ministry had also asked the Indian mission in London to get more details from the organisers.
Taking up the issue strongly, Sports Minister Ajay Maken had written a letter to the Indian Olympic Association (IOA) asking it to convey India's concerns over Dow's involvement to the organisers. He had said that the government too could take up the matter directly, if needed.
Dow Chemicals is footing the bill for a temporary decorative wrap over London's Olympic Stadium.
The company maintains that it never had a connection with the Bhopal disaster or its aftermath and that it will continue to assist IOC for a successful London Olympics in 2012.
The issue has received diplomatic attention because of India's desire to bid for an Olympic Games in the future. Dow is one of the world partners for the Olympic Games till 2020.
Last month, British MPs had joined the chorus against Dow's association with the event. (With Agency inputs)