Sahara have also agreed to go into arbitration over their demand to reduce their financial liability in the IPL, including the $370 million they agreed to pay to the BCCI to buy the Pune franchise in 2010. -File photo

NEW DELHI: India's cricket chiefs thrashed out a compromise with the Sahara group on Thursday, paving the way for their long-time sponsor to remain on board.

Sahara had severed ties with the Board of Control for Cricket in India (BCCI) on February 4 for what it said was a “one-sided emotional relationship” with the governing body.

After negotiations over the past fortnight, both sides agreed that Sahara will continue as the national team's sponsor and also field their Pune Warriors franchise in the Indian Premier League.

Among Sahara's complaints was that the BCCI had not allowed Pune to include five foreign players -- instead of the stipulated four -- in the playing XI for this year's IPL due to the unavailability of their star Yuvraj Singh.

The Pune captain is currently undergoing chemotherapy treatment in the United States for cancer and has been ruled out of the fifth edition of the Twenty20 league starting on April 4.

A joint statement issued by BCCI president Narayanaswamy Srinivasan and Sahara boss Subrata Roy on Thursday said the group will “obtain consent” of the eight other franchises to allow Pune to field a fifth foreign player in the team.

Sahara have also agreed to go into arbitration over their demand to reduce their financial liability in the IPL, including the $370 million they agreed to pay to the BCCI to buy the Pune franchise in 2010.

The BCCI have allowed Sahara to negotiate with other franchises on buying a few players since the group had boycotted the supplementary IPL auction in Bangalore on February 4 meant for players not already aligned to any team.

“Sahara confirms that it will continue sponsorship of the Indian team,” the statement said.

Sahara, which has been the national team's sponsor since 2000, had renewed a four-year deal in 2010 for an estimated $115 million to stay with Mahendra Singh Dhoni's men.

The Lucknow-based Sahara group, which has wide-ranging business interests including in finance, infrastructure, housing, media and consumer goods, also sponsors the Indian field hockey team.