Formula E cancels Hyderabad E-Prix, alleges breach of contract by new Telangana govt

Hyderabad: After a spell of uncertainty, Formula E has announced the cancellation of its Hyderabad E-Prix race, scheduled for February.

The second edition of Hyderabad E-Prix Formula E race was scheduled to be held on February 10.

"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 fulfil the Host City Agreement signed on 30 October 2023," Formula E said in statement on Friday.

They also served notice to MA&UD for breach of contract and are also mulling legal action.

“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 position and what steps it may take under the Host City Agreement and applicable laws. All of FEO’s rights in that regard are reserved,” said the statement.

The Hyderabad E-Prix would have been the only official FIA World Championship event in India in 2024, and was part of a multi-year agreement between Formula E and the Government of Telangana.

“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,” said Formula E, Co-Founder & Chief Championship Officer, Alberto Longo.

In February 2023, Hyderabad hosted a round of the FIA Formula E championship, which was an all-electric single-seater championship that helped enhance the brand image of Hyderabad.

The first race was held last year around near Hussain Sagar Lake in Hyderabad.

Following a letter from MA&UD a few days ago, Formula E’s senior executive team met with the new leadership of the government of Telangana immediately following elections last month. Discussions had been ongoing since.

A four-year Host City Agreement was signed on October, 30 2023 between Formula E and the Telangana government.

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.

The inaugural Hyderabad E-Prix in February last year returned almost 84 million USD in positive economic impact to the region, much more than what was invested by Formula E and the Government of Telangana, said organisers.

“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. We are also disappointed for our 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,” said Formula E, CEO, Jeff Dodds.

Former IT & Industries minister of Telangana, K T Rama Rao, had expressed his displeasure over the cancellation of Formula E race in Hyderabad and slammed 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,” KTR said on X.

He added that in a world where sustainability has become the focus and buzzword, KCR government 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 on X.