Date:21/07/2008 URL: http://www.thehindu.com/2008/07/21/stories/2008072153080200.htm

Other States - Orissa

Private agencies raking in moolah from advertisement hoardings

Satyasundar Barik

They enjoy ad rights on bus-shelters at a ‘very negligible price’

BHUBANESWAR: When it comes to outdoor advertising in the capital city, private companies appear to be raking in the moolah. Although town buses are numbered, the bus shelters are shining with glowing signboards bringing smiles for private advertising agencies only.

According to the Bhubaneswar Municipal Corporations (BMC), renovation of old town bus shelters was taken up on public-private partnership mode. Private advertising agencies had taken the responsibility to refurbish the vantage spots. In return, they would enjoy advertising rights for few years at a “very negligible price.”

About 35 such bus shelters have got new look without any semblance of uniformity. They look like spots meant for any advertising hoarding. In 2003, Selvel Advertising Private Limited had entered into agreement with the BMC for taking up the work of renovating bus shelters. However, the agreement could not be executed then.

In 2007, Selvel again took the lead when four advertising agencies started the renovation of shelters. The agencies are now seeking “liberty” in advertising rights for 10 years, and that too making little payments to the Corporation. According to BMC sources, private agencies are spending hardly Rs. 4 lakhs on each bus shelter. The charges for advertising on these spots would otherwise vary from Rs. 40,000 to Rs, 50,000 per month.

Going by the present arrangement, the agencies would be able to get back their money within two years. The profits, to be earned by private agencies, could touch a few crore rupees while BMC seems to have ended up a big loser in the whole `deal’.

The proceedings of the corporation meetings quoted BMC Commissioner Aparajita Sarangi as saying that the policy of granting advertising rights to private players was being examined. There was no policy as such for putting up advertisements on vending zones. Yet, several advertisements have come up on the rooftop of those cabins. To this query, Ms Sarangi said a survey was being conducted. Corporators have been putting uncomfortable questions over allowing private players to use bus shelters for advertising hoardings.

The commissioner said, “We are examining the application of private advertising agencies seeking advertising rights with regard to bus shelters for 10 years. We are also standardising the charges for advertising on those places.”