Formula E axes Hyderabad E-Prix due to alleged contract breach by the Telangana Government
The upcoming Hyderabad E-Prix on February 10 faces cancellation as Formula E accuses the Telangana government of breaching the Host City Agreement.
Formula E has canceled the Hyderabad E-Prix, citing a breach of contract by the new Telangana government. The race, scheduled for February 10, was scrapped due to the Municipal Administration and Urban Development Department (MAUD), controlled by the Telangana government, failing to fulfill the Host City Agreement signed in October 2023. The cancellation follows Formula E Operations' formal notice to MAUD, indicating a breach of contract and reserving rights under the Host City Agreement and applicable laws. The uncertainty surrounding the race's future emerged after the change in government, affecting the motorsport fanbase in India and causing disappointment among Formula E organisers and partners. The inaugural race in Hyderabad had a significant economic impact of nearly USD 84 million, and the cancellation is viewed as a missed opportunity to promote electric vehicles in a region grappling with pollution issues.
"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," the statement read.
Initially, a four-year agreement was signed between Formula E, Telangana government and Greenko, which has pulled out of the event after the inaugural edition.
However since the change of guard, the future of the race had been shrouded in uncertainty with Formula E raising fresh concerns last week.
"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," said Co-Founder & Chief Championship Officer of Formula E Alberto Longo.
"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," he added.
The inaugural race in the city had delivered an economic impact of nearly USD 84 million.
"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," Formula E CEO Jeff Dodds said.
"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.”