Formula E has canceled the Hyderabad E-Prix, citing a contract violation by the new Telangana administration.
The second Formula E race in India was set for February 10.
The Municipal Administration and Urban Development Department (MAUD), which is controlled by the Telangana government, has been accused of violation of contract by Formula E. “The cancellation comes following a decision by the Municipal Administration and Urban Development Department (MAUD), under the control of the Government of Telangana, not to fulfill the Host City Agreement signed on 30 October 2023,” the organization said in a statement on Friday.
The country’s first electric race was staged in February of last year, with Telangana’s then-IT Minister KT Rama Rao playing a key role in bringing the event to Hyderabad. However, KTR’s BRS party was defeated in the state election to Congress in December, and the new administration has indicated little interest in hosting the event.
“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. FEO is considering its options in light of the Host City Agreement and applicable laws. All of FEO’s rights in that regard are reserved,” according to the statement.
A four-year deal was initially struck between Formula E, the Telangana government, and Greenko, who withdrew from the event following the first round. However, the race’s future has been clouded by doubt since the change of guard, with Formula E expressing further worries last week.
“We are extremely disappointed for India’s massive motorsport fanbase. We understand that hosting an official motorsport world championship race is a significant and prestigious event for Hyderabad and the entire country,” said Formula E Co-Founder and Chief Championship Officer Alberto Longo. “Akbar Ebrahim, President of the Federation of Motor Sports Clubs of India (FMSCI), and his team have been extremely 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,” he went on to say. The city’s first race generated roughly USD 84 million in economic benefit.
“It is deeply frustrating that we cannot build on the success of the inaugural race last year, which delivered almost 84m USD in positive economic impact to the region,” Jeff Dodds, chief executive officer of Formula E, stated.
“We are also sorry for our major Indian partners, especially Mahindra and Tata Communications.” Racing in Hyderabad was essential because it demonstrated the advantages of using electric cars in a market where pollution from vehicle engines has a significant effect on public health and the environment.
