Congress party mounted a vicious campaign against the ABB Formula-E Race, an event that brought global recognition and substantial economic benefits to the city. The race, which took place for the first time in India in February 2023, was a groundbreaking achievement during the BRS rule.
Now, with the Congress-led Revanth government in power, the decision to unilaterally cancel the 2024 Hyderabad race and launch a smear campaign threatens the city’s brand image and its growing reputation as a hub for innovation and sustainability.
The Formula-E Race is a premier electric vehicle racing series that has been held for over a decade in various cities worldwide. The event is not only a showcase of cutting-edge technology but also aims to promote environmental consciousness by reducing pollution and encouraging the adoption of electric vehicles (EVs). Hosting the Formula-E race is an exclusive opportunity for cities, placing them on the global map as leaders in green technology and sustainability.
Formula-E races have been held in over 100 prominent cities across the globe, including London, Beijing, Seoul, Berli, Moscow, Jakarta, Shanghai, etc. The races, which attract millions of viewers worldwide, are a symbol of the world’s transition to more sustainable, eco-friendly modes of transportation. Formula-E is also the first sport to achieve net-zero carbon emissions.
Hyderabad made history in February 2023 when it hosted India’s inaugural Formula-E race, a partnership between the Telangana government and the Formula-E organizers. The event was part of a larger effort by then-Municipal Minister KTR and the BRS government to enhance the city’s international profile and cement its place as a global leader in electric mobility. The Hyderabad E-Prix was held during the E-Mobility week organized by the KCR government.
Hyderabad’s selection as a host city was no coincidence. The KCR government’s consistent efforts toward environmental conservation, including the state’s Haritha Haram initiative, which saw over 6.5 crore saplings planted, and the city winning World Green City Award in 2022, were key factors that attracted Formula-E organizers.
The Formula-E race generated significant economic returns for Hyderabad, with organizers estimating a boost of over Rs. 700 crore in direct and indirect business. The event drew over 35,000 spectators from around the world, benefiting local businesses, hotels, restaurants, and media outlets.
After the Congress-led Revanth government assumed power, they took the controversial step of scrapping the agreement with Formula-E organizers and canceling the 2024 Hyderabad race. This decision not only undermines the progress made by the previous government but also damages the global brand image that Hyderabad had carefully built as a host for international events.
The Congress party has launched a campaign based on a minor technical issue, attempting to discredit the efforts of the previous government. However, it is crucial to recognize that partnerships for large-scale sporting events with state governments are commonplace across India. States like Tamil Nadu, Uttar Pradesh, Odisha, and Maharashtra have similarly engaged in partnerships for events such as Formula-4 racing, Moto GP, and the Hockey World Cup, which have brought substantial investments and international attention.
However, there is not an iota of truth in the allegations that the BRS government misappropriated Rs. 55 crore for the race. The Telangana government initially agreed to host the Formula-E race for four years, securing sponsorships from companies like Greenco for the first event. However, in preparation for the second race in February, sponsorship issues arose.
By June-July, before the state assembly elections, FIA representatives informed the government that without sponsors, they couldn’t organize the race. In response, the then-minister KTR assured organizers they would secure sponsorships by February, and HMDA allocated Rs. 50 crore to cover interim expenses and race arrangements. KTR has clarified the same in a press meet yesterday in Telangana Bhavan.
As the nodal agency, HMDA managed the race funds independently. The decision to allocate funds was solely to ensure the race’s success and was done within protocol. HMDA, as an autonomous body chaired by the Chief Minister and vice-chaired by the Municipal Administration Minister, handles the funds separately from the state finance department, and no approval is needed from the finance department. The funds were transferred directly to the race organizers, and if the event had proceeded, the allocation of funds would likely not have drawn scrutiny.
However, once the Congress government assumed power, they decided in December to cancel the Formula E race. With the event now called off, the February 2024 race was canceled, and the race management company declined to return the funds, citing the cancellation by the state as the cause.
Despite Congress’s accusations of misappropriation or money laundering, there is no evidence that KTR or the BRS party benefited from the funds. Instead, the hasty decision to pull out of the agreement ultimately favored the Formula-E organizers, who were under no contractual obligation to refund the amount.
The hasty actions by the Revanth government could have long-lasting consequences for Telangana. By canceling the Formula-E event, the government risks deterring globally renowned brands and international organizations from collaborating with the state in the future. Legal challenges or a drawn-out dispute between the Telangana government and Formula-E organizers could further discourage investment and create an atmosphere of uncertainty among investors, entrepreneurs, and major corporations.
It is crucial for Chief Minister Revanth Reddy to reconsider the impact of these decisions on Telangana’s future. The Formula-E race was not just a sporting event; it was a symbol of Hyderabad’s commitment to environmental progress and economic development.