India sets date with
Formula one racing F1 Drivers will burn rubber on Indian racing circuit in 2010 Indian motor sport enthusiasts
are in an upbeat mood. A country, backed by a booming economy is set for another leap. Come 2010, the country with the second largest population in the world will host its first
Formula One Grand Prix. Yes, India is preparing to throw the red carpet for the who-who of motor racing three years from now and the race to make things happen right from building a track circuit to a host of allied
infrastructure which goes along with Formula one racing have kick started. The FIA has handed two draft contracts one for race promotion of the Grand Prix of India in the F1 world championship and the circuit rights agreement, which effectively signals India''s kick start for the preparation for the 2010 motor GP race infrastructure. The FIA, the world''s motor racing body has left the choice of selecting the venue to the race promoters- Indian Olympic Association (IOA) headed by President Suresh Kalmadi. Kalmadi, a member of Indian parliament and who belongs to the ruling Congress party has informed that the Formula One management has approved two sites to build a circuit. The two sites chosen are in Sohna, near the industrial hub of Gurgaon to Delhi’s south west, and Greater Noida, a fast developing area to the capital’s east. India had been toying with idea to have its own grand prix since Narain Karthikeyan became the first Indian to become a Formula One driver in 2005. He is currently with Williams as test driver. Besides Karthikeyan, Karun Chandhok, is India’s leading racers and currently racing in the GP2 series. And for his part Bernie Ecclestone, the formula one supreme is keen to expand the sport’s reach further in Asia. India, with a booming economy and more than 500 million people under the age of 20, was a strong candidate for long. But the magnitude and the cost of bringing the meg event to India are mindboggling. To bring the circus called motor sport to India will entail spending huge amount of investment. The total investment is something in the range of about Rs 1500 crore (US$375million). The track cost projection is expected to be in the range of Rs 500-550 crore (US$ 125 million to US$137.5 million). Further the cost of the land, the infrastructure cost is likely to shoot up to over Rs 1550 crore(US $ 387.5 million). India’s bureaucracy means that land deals can take years, while building a race track. The Formula One Administration (FOA) charges from titleholders (hosts) right fees which hover between $15.75 million (Rs 63 crore) to 52.5 million (Rs 210 crore). The total land needed to set up the facility is estimated at 750 acres with the track, pits, paddocks, and stands accounting for approximately 300 acres. And to recover the amount invested a good business model has to been place. Returns on investment of this magnitude are equally impressive. A Formula 1 race in India can generate revenues up over Rs 50 crore (US $ 12.5 million) besides opening up over 10,000 direct and indirect jobs, according to projected estimates. Besides the track, the supporting infrastructure must also be matching up to international standards. Infrastructure, capital, managing teams, getting all equipment, customs clearance, sponsors. A mammoth task indeed awaits IOA. The prospect of seeing the magnificent machines streaking across a track close to the capital Delhi along with the glamorous paraphernalia of the F1 circus is one which excites all motor sports fans all of whom are waiting in anticipation.