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The state-level domestic tournaments don't have the same quality as the IPL. Now having a second division league may not be a practical idea. How the BCCI will lay out the eligibility criteria? A better idea will be to give more visibility to the already existing state level franchise leagues, such as the Tamil Nadu Premier League (TNPL), Karnataka Premier League (KPL) and T20 Mumbai League. The quality of these leagues can be improved with the addition of foreign players.
You cannot expect the same level of competition in domestic tournaments but these are the tournaments which will help nurture young talents and there is no point in adding overseas players as the tournament is between talents from different regions and the best performers always comes under the selectors radar and recently the IPL has fast tracked some careers because of their outstanding performance.
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Indian domestic cricket is a joke. The national team members hardly ever takes part and there are too many teams (36 for the Ranji Trophy) to have a meaningful competition among them. IPL is at an entirely different level. The best players are taking part in this tournament (including the overseas players). What I am proposing is a second tier franchise T20 league, representing the second tier cities, in order to bridge the gap between IPL and Indian domestic cricket.
Even in country cricket you hardly see International players in the team, not sure about the number of teams in the domestic circuit, right now India is able to produce world class players and may be it is because of these abundance of teams where players can perform and the outstanding players gets a chance to represent India.
The problem with the second tier franchise is that it will be hard for them to find investors and sponsors and the quality will lack and there are so many cricket played in a calendar year and i think there is an over saturation of tournaments and you will find it hard to find audience for these second tier tournament.