Karnataka, Maharashtra lead the fray of aspirants hoping to stage the event
NEW DELHI: The on-off Formula One deal with Andhra Pradesh has done nothing to reduce Bernie Ecclestone’s interest in an Indian Grand Prix, but it has made Formula One Management (FOM), the commercial rights holding company, wary of tying its fortunes to the whims of the ballot.
Now, negotiations for a possible race in India are being conducted with private investors with strong corporate backing. “A deal is close to being finalised,” said Vicky Chandhok, who has been Ecclestone’s informal adviser on the Indian GP since February, when the FOM honcho visited Bangalore with his wife, a disciple of Sri Sri Ravi Shankar. That was when Ecclestone renewed his discussion on conducting a race in India.
“But talk is cheap,” Chandhok continued. “We will reveal the location by December after the commercial contract has been finalised.”
Though interest in the race has emanated from Maharashtra, Karnataka, Tamil Nadu, Punjab, Haryana, and Andhra Pradesh, it is the parties from the first two states who are close to getting the deal done. In fact, Karnataka is believed to have the stronger bid.
While China built the F1 track in Shanghai for almost $330 million, the Indian promoters are confident that given the local labour and raw material costs, the feat can be accomplished for as little as $100 million. This sum does not include the cost of the approximately 700 acres of land that will be needed.
The rights fee demanded by the FOM, which varies between $9 million and $30 million, may be pared to help the deal. The FOM has also offered help in finding a title sponsor, thus taking away a major worry of the promoters.
Government support, however, will remain pivotal in ensuring that the deal comes through.
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