Organizers promise to pay India GP tax bill

(GMM) Organizers of the Indian grand prix have allayed fears the inaugural event might be called off next month.

The country's government has refused to ease its demands that teams pay hefty customs taxes to import their equipment, despite FOTA chief Martin Whitmarsh warning at Monza that the stance could lead to a boycott.

The race's non-government organizers Jaypee stepped in on Tuesday by revealing they have "in principal approval" for a customs exemption.

And if the exemption is not ultimately granted, Jaypee is promising to foot the bill.

"If required, as per the law of the land, (Jaypee) will pay customs duties and taxes", the organizers said in a statement reported by the Press Trust of India.

The tax bill is estimated at less than US $2 million.