A New Zealand team will attend the 19th Commonwealth Games in New Delhi, starting in just over a week.
The decision was announced at a press conference this evening by NZOC president Mike Stanley and secretary-general Barry Maister.
Mr Stanley said there were health and hygiene concerns around the village but no direct security threat to the Games.
"We remain hopeful that things can be turned around," Mr Stanley said.
"What we found was inexcusable and unacceptable but we've seen a change in leadership and this is positive."
The government in India had acknowledged the issues and this was significant progress. The Chief Minister of Delhi had brought in 40 of her top administrators to make things happen, Mr Stanley said.
In addition, New Zealand athletes were now due to arrive two days later than originally scheduled, buying invaluable additional time.
This evening's news followed cyclist Greg Henderson's decision to withdraw from the event today, citing health and security concerns.
It's not all about Greg Henderson, I've got a family now," he told NZPA.
"I have to put them first and I don't feel 100 per cent sure about the environment over there. I look at it and think would I like (wife) Katie or (one-year-old son) Charlie competing over there and the answer is obviously no. I've got to put myself in their shoes and weight up if it's worth that much.
"Anything could happen over there. Is my career, is cycling, worth it?"
Athletes village conditions greatly improved
Earlier, in a boost for India's beleaguered preparations for the Games, two top international sports officials said this evening that conditions at the squalid athletes' village had greatly improved even as they urged clean-up work to continue urgently.
While several other teams have delayed their travel because of the problems, the first athletes - the English hockey and lawn bowling teams - were due to arrive this evening, though they were reportedly going to stay in hotels until the village was ready.
The Games were intended to be a source of international pride for the emerging Asian power, but corruption scandals, huge delays in getting facilities ready, and the filthy conditions of the games village have turned the event into an embarrassment for India.
At least nine athletes have withdrawn from the games in recent days because of concern for their health and safety, and the president of Australia's Olympic Committee said Friday that India should not have been awarded the games in the first place.
Amid the criticism this week about the conditions in the village, India committed major resources to rectifying the problems, games officials said.
Commonwealth Games Federation President Mike Fennell, who rushed to Delhi to deal with the troubles, toured the village this morning, meeting with top athletic officials from participating countries. He also met with Indian Cabinet Secretary K.M. Chandrasekhar, the prime minister's top aide for the games.
Fennel's staff informed him that "considerable improvements have been made within the village," he said in a statement.
"It is vital that all remedial work that has already started continues with the greatest urgency," he said.
The head of Australia's Commonwealth Games Association, Perry Crosswhite, was upbeat as well.
"Conditions at the Commonwealth Games Village are acceptable. Things are getting better every time," he said in New Delhi.
There were still problems with water in the basement inside the village, but Delhi officials promised it would be fixed by Friday night "and we think the assurance given to us will be fulfilled," he said.
- AP, NZPA
New Delhi decision - NZ to attend Games
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