Cancelled Hyderabad Formula E-Prix: Gain or loss for the city? Depends on who you ask

Business loss  

Hyderabad hosted its first electric car race on 11 February, 2023. A 2.83 km-long street circuit, touted to be India’s first, was built on the banks of the Hussain Sagar, running to the adjoining IMAX Road.

Ch Mallareddy, a food joint owner opposite Prasad’s IMAX, pointed out that the venue was an eyesore.

Hundreds of street vendors place their carts on the Hussain Sagar stretch where the Formula E track was laid. (Ajay Tomar/South First)

“Organising the race is a good initiative but it could have been hosted in the outskirts of Hyderabad. Last time, it majorly affected the traffic movement, thereby causing inconvenience to citizens. Most of the audience seemed to be from well-to-do families so they could have traveled anywhere across the city to watch the race,” Mallareddy tells South First.

The man is elated that this season’s Formula E race has been cancelled. “The Secretariat has also come up here which means that the VIP movement here is an everyday affair, which would have caused chaos if the race had been held,” Mallareddy says.

He notes that last year, the government’s direction to shut down all surrounding shops resulted in him losing at least ₹2,000 to ₹3,000 per day. “Shops were asked to close a week prior to the race in February last year. Before that also, when the first race happened, we were all asked to close our outlets.”

While the Formula E was held in February, it was preceded by the Indian Racing League (IRL), a precursor to the main event, that took place in November 2022.

Also Read: Formula E cancels Hyderabad E-Prix over alleged contract breach by Telangana govt; considering further action

Across Mallareddy’s shop are the outlets of renowned food chains — McDonald’s, KFC, Paradise Biryani, and Pizza Hut. Employees at almost all the eateries tell us that they incurred massive losses during this time.

KFC and McDonald’s outlets besides the IMAX Multiplex. (Ajay Tomar/South First)

“For around a week, all the shops on this road were shut. We suffered a loss of approximately ₹5-10 lakh per day and, on weekends, when the main event was held, around ₹15 lakh. One of the outlet employees even complained to the GHMC authorities but there was no response,” an employee of the Paradise tells South First, adding that they see the cancellation of the race as beneficial for their business.

An employee at KFC echoed a similar concern. “The sales were very poor during the whole week of the event. On a regular day, our sales reach around ₹50,000 but those few days, it was reduced to a meagre ₹5,000 to ₹10,000.”

Manjula, a vendor in front of NTR Gardens, tells South First, “I was asked to close for four to five days as the authorities had to lay footpaths. I have two bandis (carts), so I make around ₹1,000 every day. There was no alternative place for me to set up my bandi, so I could not earn anything on those days.”

Just like Manjula, many other shop keepers expressed satisfaction over the E-Prix being called off. “I had to shut my shop for three to four days. I make around ₹1,000 to ₹1,500 every day, so you can calculate how much I lost,” a pan shop vendor across the IMAX multiplex tells South First.

Another restaurant owner near Saifabad Mint Museum says: “I have to pay salaries to the waiters. We make around ₹6,000 to ₹8,000 every day, so when we had to close for 10 days, we lost a lot of revenue. The daily-wagers were the worst affected. If it was for a one- or two-day festival like Ganesh Chaturthi then it is okay, but this race led to closure of many shops for many days.”

Two push carts of Manjula, a street vendor, on the NTR Marg beside Hussain Sagar Lake. (Ajay Tomar/South First)

Sri Harishini, an IT employee from Himayathnagar, recollects how she missed her morning walks during those days as roads leading to Hussain Sagar were barricaded. “As a nearby resident, I come for a walk to Hussain Sagar and my friend (Shreshtha) comes for cycling. But during that time, we could not come here,” she laments.

Shreshtha notes that motorsports fans would go anywhere to watch the start-studded event.

“The race should have been held in the outskirts of the city. That way, organisers would have had access to wider roads and citizens would have escaped traffic chaos. It would have been a win-win for everyone,” the engineering students tells South First.

In our previous reports — during the IRL as well as the Formula E-Prix — South First also highlighted how drivers raised concerns about a few turns at the racing circuit.

Also Read: Fresh concerns over Formula E race in Hyderabad after change of guard in Telangana; E-Prix in talks

Hyderabad’s loss

Taking a swipe at the erstwhile BRS government, Deputy Chief Minister Bhatti Vikramarka said that the staggering funds spent on the Formula E event was done so for a mere “potential image boost” of Hyderabad.

However, there are many citizens who still heap praises on the event. They believe that such events will take Hyderabad a step further in attaining worldwide acclamation.

The inaugural E-Prix in the country was held in February 2023. (Supplied)

Muhammed Yunus, a civil contractor from Maktha, tells South First, “In my opinion, the race should have been conducted as both Telangana and Hyderabad would get global recognition. I understand there are some inconveniences such as traffic jams due to the event, but it is ingrained in us now.”

Noting that citizens suffer several other day-to-day inconveniences, he asks, “There are inconveniences such as VVIPs convoys and others, so people can put up with that, why not this?”

Laksh Vijayvargiya, a student of computer science from Kacheguda, says the race would have boosted the dwindling motorsports culture in India.

“I really feel that the race should have happened as it helps the motorsports culture grow in India. Previously, we have hosted Formula 1 race in Noida, but now that culture has almost faded. The government not organising such a big event due to money issues is not good. It demotivates young fans like me,” he tells South First.

Anirudh, a businessman, says losing the chance to host the race is not ideal for Hyderabad. “This race, in general, would have focused so many eyes on the sport. It would have brought a lot of new people interested in the sport. Canceling it abruptly would mean losing on a lot of business coming in, a lot of money that would also come with it, among other opportunities for people,” he tells South First.

The Indian Racing League (IRL) In Hyderabad. (Supplied)

Several residents also point towards the tourism boost Hyderabad would have received had the race been conducted. Some others say that the cancellation at the last moment is not good for the city’s reputation.

“It (Formula E-Prix) happens in a lot of major cities globally and it happens only once a year. It shows the new government which has come to power does not understand what is right for the city,” Akshay, an engineer, remarks.

Meanwhile, reports suggest that if the government were to decide to conduct the race sans promoters — after last year’s major promoter Greenko’s pulled out — it would have to bear a cost between ₹600 to ₹750 crore to organise the event.

Also Read: Formula E-Prix: Telangana IAS officer Arvind Kumar issued memo over ‘serious violations’ in contract, ₹54 crore payment

Political controversy

The recent cancellation of the Formula E-Prix in Hyderabad has also stirred up a controversy. The government, on Tuesday, issued a memo to Arvind Kumar, Telangana IAS officer and former Special Chief Secretary of the Municipal Administration and Urban Development (MA&UD) Department, citing “serious violations on his part” in connection with the agreements. He has been asked to respond within 7 days, failing which action will be initiated.

30-day countdown of the 2023 Formula E-Prix Hyderabad attended by Union Minister Nitin Gadkari, Telangana, MA&UD Minister KTR and Maharashtra CM Eknath Shinde. (Supplied)

On 5 January, the cancellation of the Hyderabad leg of the Formula E-Prix’s Season 10 was announced by the motorsports body citing a breach of contract by the Telangana government’s MA&UD Department.

Taking to X, former Telangana MA&UD Minister KTR termed the development as a result of a “poor and regressive decision” by the Congress government.

“This is truly a poor and regressive decision by the Congress Government. Events like Hyderabad E-Prix enhance the brand image of our city and country across the world. We had put in a lot of effort and time to bring Formula E-Prix for the first time to India,” the BRS leader said.