Mumbai to host F1 boat race in Feb, Nov '04

The state government is clearing the decks to exploit the business potential that will be created by two international boat-racing events "" International Formula I Power Boat and Class I Boating.

The two events, which normally take place in Dubai every year, will be held next year in Mumbai in February and November along the coastlines of Marine Drive and Gateway of India.

Seeing the huge business potential, the government has decided to provide an upfront bank guarantee of Rs 1.8 crore, which is encashable on the day of the event, to the event's organiser, UIM Formal I International.

Ajit Nimbalkar, state chief secretary, Sanjay Ubale, secretary (special projects), and Ashish Kumar Singh, managing director, Maharashtra Tourism Development Corporation have left for Dubai to sign an agreement on Friday.

In return to the bank guarantee, minor infrastructural modifications (such as setting up scheduled water-race courses) and agency costs for marketing the event, the state government will get the terrestrial advertising rights within India for the entire event.

Ubale confirmed the development and said, "Apart from the terrestrial rights and ticketing revenue, there would be a lot of intangible revenues accruing to the state and Central government. We are confident that the tangible revenues from the event will see us break even in the first year itself."

He added that while the agreement was being signed for 2004, Mumbai is sought to be made a permanent annual venue for the two events.

The state will earn from ticket revenues, television advertising rights across India's satellite television network.

The intangible revenues include the week-long 400 to 500 hotel bookings to accommodate the 25-odd participant teams.

The state is also planning to ask the organisers to allow a local Indian corporate to field its own team to participate in the event.

About five corporates have already expressed their intention to put forward a team. A confirmation, however, of this is only possible after the formal agreement is signed in Dubai on Friday.