Indian F1 Grand Prix runs into trouble

Sunday's Hungarian Grand Prix, which Lewis Hamilton won for Mercedes, was a usual affair for Formula One fans worldwide. But Indian race aficionados were left shocked after F1 supremo Bernie Ecclestone said the Indian Grand Prix will "probably not" happen in 2014 as Russia prepares for its debut.

India had hosted the races in 2011 and 2012 at the Buddh International Circuit in Greater Noida, near New Delhi. The 2013 edition is slated to happen on October 27. The event is organised by Jaypee Sports International, part of the diversified Jaypee Group. Bharti Airtel, the country's largest telecom operator by users, is the event's title sponsor.

Ecclestone didn't specify what the problem was with India hosting the event, saying only that it was "very political". Jaypee Group executives didn't give any details either.

"We are studying his [Ecclestone's] comments and will examine the genesis of the same," Sameer Gaur , Managing Director and CEO, Jaypee Sports, said in a text message.

Jaypee Group spokesman Askari Zaidi told Business Today the Formula One Management (FOM) had "raised certain issues", all of which were not in the company's hand. Some issues involved the government, he added.

Speculation about the event getting axed has been rife for the past few weeks. In a statement last month, Jaypee Sports said its agreement with Formula One Management was to hold F1 races till 2015.

Jaypee Sports spent $400 million on the Buddh circuit, including a licence fee of $30-35 million. It has to pay the licence fee to FOM every year for five years, the duration of their contract. The amount increases by 10 per cent annually on a compounding basis.

The Indian Grand Prix is hoping to break even this year. If the Formula One Management pulls out India from the F1 calendar, not only would it be a setback for racing aficionados, but it would also derail the marketing plans of scores of sponsors and broadcasters.