NEW DELHI: India’s hopes of hosting a Formula One race suffered a setback following differences between the government and race promoters, media reported today.

India is scheduled to host their first ever F1 in 2011, but the sports ministry has turned down race promoters JPSK Sports’ request to be allowed to pay F1 $36.5 million for the rights. The ministry has recently described the event as “entertainment”, saying it would have “no impact on the development of sports in the country”.

“F1 is not purely sports. It is entertainment and this venture is a commercial initiative,” the Times of India quoted a ministry source as saying.

Work on the track is in progress in Greater Noida.