Andhra Pradesh Chief Minister N Chandrababu Naidu admitted on Friday that the neighbouring states of Maharashtra and Karnataka are also in the race with AP for the prestigious Formula One race project.

"Everybody is interested to compete. We are in discussion with Formula One promoter Bernie Ecclestone and other officials. We are studying the viability of the project and working out the details of what we have to do at our end to bring Formula One to Hyderabad.

"We have invited Bernie Ecclestone to visit Hyderabad during October, when the Afro-Asian Games are held here [in Hyderabad]. He has accepted the invitation. We will have further discussions with him when he comes," Naidu told a media conference.

Stating that Maharashtra and Karnataka are wooing the Formula One promoter with better incentives and facilities, Naidu said he would also work out an attractive package, including land, to attract the project to Hyderabad and see what kind of incentives/policy support the Government of India can offer.

Naidu confessed that he was spellbound watching the Formula One race during his visit to Monza, Italy, last weekend. When other Asian countries, such as China and Bahrain, have also set up Formula One race tracks and are slated to host the Grand Prix next year, there is no reason why India should lag behind, he added.

He said Formula One already has 17 venues and Hyderabad, if it is chosen by the promoters, would be the 18th.

"He [Bernie Ecclestone] is willing to come to India. We had good discussions with him," he added and pointed out the benefits that a project like Formula One could entail for a city like Hyderabad.

"It [the Formula One project] will bring lot of investment. It will also create one lakh jobs directly and indirectly. Hotel, tourism, entertainment industry and business will get a boost. The government will also get more revenues. It will also transform the area in and around Cyberabad. Automobile industry and other multi-national corporations will come to the area and bring in more FDI," Naidu said, but refused to quantify the likely investment and the land required for the project.