Ecclestone letter to IOA says F1 is possible

It will be a conditional initiative with the proviso that the IOA will back and support the move to get the infrastructure ready for hosting the event. Besides, it will also be the responsibility of IOA to elicit support from the central and state governments to construct a circuit at “a site which is acceptable to the Formula One Administration Limited (FOA).”

Based on the letter, addressed to Kalmadi by Ecclestone, an executive committee meeting of the IOA was held today to ratify the initiative. And, if IOA succeeds in its effort, the profits thus accruing from the races will go to the national Olympic body for it to plough back into the promotion of Olympic sport in the country.

At the meeting today, the IOA formed a four-member committee — IOA secretary-general Randhir Singh, vice-president VK Malhotra, treasurer AK Matoo and Commonwealth Games secretary-general Lalit Bhanot — to look into the various aspects of the matter.

The race, officially termed ‘Formula 1 Grand Prix of India’, will be promoted by the IOA and subject to the national body entering into a final contract with FOA by September 30 this year. One of the main terms of the contract specified by CEO Ecclestone of the Formula One Group is that the IOA has to take the responsibility for the entire financing of promotion and conduct of the race.

The race would also be subject to condition that proper land for building the track is identified by the IOA in consultation with FOA, and a favourable feasibility report is given by the latter’s partner Tilke Associates. The letter also clearly mentions that it does not constitute an offer capable of acceptance, nor intended to create legally binding relations.

This effectively shoots down the proposal by liquor baron Vijay Mallya a month ago to host a street race around India Gate. Asked if it was realistically possible with the Commonwealth Games beckoning, Kalmadi said the IOA was confident of making a satisfactory beginning before the September 30 deadline to show FAO what it can do.

“We have to take care only of the organisational aspect of the Games and in the meanwhile we will go full throttle to see F-1 coming to India. As for the Games, everything is in place and the infrastructural aspects have been taken care of. Various government agencies like the CPWD, DDA and others have started tendering, and between July and December the construction work would have started at all venues. We have also sorted out the issue about the Village with Akshardam Temple authorities and no high-rise building will be constructed as the proposal to build holtels near the Temple area has been shelved,” he said.

CONTRACT requirements

• Everything has to have FOA’s approval

• A race promotion contract with FOA on various terms, including commercial, the fee, provision of suitable LC for security and TV organisation’s costs have to be met by IOA

• A circuit rights agreement with FOA affiliate APM Sport (Ireland) relating to trackside advertising, title sponsorship, hospitality, vending and exhibition, pouring rights and official programme and event merchandising rights, etc. needs to be signed.