Former MA&UD Minister KT Rama Rao termed it a result of the "poor and regressive decision" by the Congress government.
The inaugural E-Prix in the country was held in February 2023. (Supplied)
In a staggering blow to Indian motorsports enthusiasts, the Hyderabad leg of the 2024 ABB FIA Formula E-Prix, slated for 10 February, has been cancelled.
The announcement came from Formula E, late on Friday, 5 January, citing a breach of contract by the newly-elected Congress government in Telangana.
Last week, the E-motorsports organisation urgently sought clarifications on the contractual commitments of the state government, seeking to know how it might impact the upcoming race.
The deal to bring in the prestigious Formula E-Prix to Hyderabad was struck by the previous BRS government.
Formula E said that it reached its decision after the Telangana government’s Municipal Administration and Urban Development (MA&UD) Department did not agree to fulfil the host city agreement signed on 30 October, 2023.
Telangana Chief Minister Revanth Reddy also holds the MA&UD portfolio.
It added that the Hyderabad E-Prix was part of a multi-year agreement (at least four years) between Formula E and the state government.
The inaugural E-Prix in the country was held in February 2023, with then MA&UD Minister KT Rama Rao playing a huge role in bringing the race to the city. However, the political landscape shifted and KTR’s BRS party lost power to the Congress in the recent state Assembly elections.
In a statement, the Formula E, which functions under the Fédération Internationale de l’Automobile (FIA) said, “Formula E Operations (FEO) has been left with no choice other than to formally give notice to MAUD that it is in breach of contract.”
The FEO is now contemplating its next steps, exploring actions it could take against the Telangana government under the host city agreement and applicable laws.
The Formula E officials had met representatives of the new government last month after which it had noted, “With the event just a few weeks away and in its final stages of preparation, Formula E, partners, and suppliers have already made significant commercial investments in the event.”
It’s crucial to note that the Hyderabad round was slated to be India’s only official FIA World Championship event in 2024. The season is set to kick off on the upcoming Saturday, 13 January, with the Mexico City E-Prix.
Alberto Longo, Co-Founder and Chief Championship Officer, Formula E, said, “We are extremely disappointed for the huge motorsport fanbase in India. We know that hosting an official motorsport world championship race is an important and prestigious occasion for Hyderabad and the whole country.
“The President of the Federation of Motor Sports Clubs of India (FMSCI), Akbar Ebrahim, and his team have been incredibly supportive in bringing Formula E back to Hyderabad. They share our disappointment in the decision of the Government of Telangana which means that will not happen.”
Jeff Dodds, CEO, Formula E, noted that the inaugural race had an economic impact of $84 millions. “It is deeply frustrating that we cannot build on the success of the inaugural race last year, which delivered almost 84m USD (over ₹698 crore) in positive economic impact to the region.”
He expressed disappointment for major Indian partners, particularly Mahindra and Tata Communications. “Racing in Hyderabad was important to showcase the benefits of adopting electric vehicles in a market where pollution from vehicle engines has a massive impact on public health and the environment,” Dodds added.
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.
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 🇮🇳
In a world… https://t.co/8tCIBEcgB5
— KTR (@KTRBRS) January 6, 2024
KTR added that the erstwhile BRS government, led by its chief and two-time Telangana chief minister K Chandrashekar Rao, also used the occasion to conduct a week-long EV Summit.
“In a world where sustainability has become the focus and buzzword, KCR govt had taken the initiative to use the Formula E Race as an occasion to also conduct a week-long EV Summit attracting EV enthusiasts, manufacturers and startups to showcase Hyderabad as an attractive investment destination. We had also launched the Telangana Mobility Valley to promote the state as the epicentre for Sustainable Mobility Solutions,” said KTR, who is also the BRS Working President.
South First reached out to MA&UD Secretary M Dana Kishore and Industries Minister D Sridhar Babu for further clarification, but has not received a response so far.
The story will be updated as and when we receive their responses.
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