Nov. 16 (Bloomberg) -- Formula One will hold its first race in India in 2010 after Chief Executive Bernie Ecclestone reached an accord with building company Jaiprakash Associates Ltd., the sport's official Web site said.
The agreement, which follows more than four years of negotiations with various organizations,
will spark an explosion of further interest'' in the motor-racing series in India, Ecclestone told Formula1.com, which said the Grand Prix will be in the New Delhi region. Terms of the pact weren't disclosed.
Ecclestone, 77, is seeking to boost the popularity of Formula One in Asia and increase annual sales of about $1 billion. He added races in Bahrain and China three years ago and another in Singapore will join the calendar next season.
A new team, Force India, was formed last month after billionaire Vijay Mallya bought the Spyker team for $109 million and it will compete next year.
Ecclestone signed the accord with JPSK Sports Private Ltd., a unit of Jaiprakash Associates, the Web site said. Ecclestone, reached by telephone, said he wasn't immediately able to comment.
New Delhi-based Jaiprakash gets 45 percent of its annual revenue of 37.9 billion rupees ($963.9 million) from building dams, 53 percent from selling cement and the rest from its four hotels, a golf course and the construction of homes.
London-based buyout firm CVC Capital Partners Ltd. took control of Formula One in November 2005, when it acquired Bayerische Landesbank's 48 percent stake and an undisclosed part of Ecclestone's 25 percent shareholding.
To contact the reporter on this story: Alex Duff in Madrid at at aduff4@bloomberg.net
Last Updated: November 16, 2007 12:22 EST
SOURCE: http://www.bloomberg.com/apps/news?pid=20601091&sid=aBGy3H2hUzYQ&refer=india