Top Story

e4m_logo.png

Home >> Out-of-home >> Article

Billboards go off the highways

19-September-2005
Font Size   16
Billboards go off the highways

The government has banned all advertising along national highways in the model concession agreement for build-operate-transfer (BOT) projects. The move is likely to hit the Rs 850-crore outdoor advertising industry as well as the income of road operators.

Officials in the roads and highways department said the move was initiated as large hoardings often distracted drivers, resulting in accidents.

The Indian Roads Congress had also incorporated the clause in its charter. Also, the Supreme Court had banned advertising along roads in cities like Delhi.

The highway operators can, however, use toll plazas, rest areas, bus shelters and telephone booths for advertising purposes if the roads and highways department finds it non-distracting.

The new model concession agreement —which will dictate the terms and conditions for future road contracts — has also reduced the concession period for four-laning of highways from 15 years to 12 years.

An operator can continue to operate for 20 years, if it agrees to widen a highway to six lanes. According to the agreement, an operator can be exempted from the obligation of six-laning a highway if he informs the National Highway Authority of India within the first eight years of the contract period.

Also, an operator faces an even shorter concession period if toll revenues are higher than projections. For every per cent of actual traffic in excess of projections, the concession period will be reduced by 0.75 per cent.

The government has, however, provided relief to operators if traffic falls short of projections. For every per cent of shortfall, the concession period will be increased by 1.5 per cent.

The concession agreement addressed the issue of land acquisition, which has been a major grievance of the private players.

It said 80 per cent of land will be acquired by the NHAI before construction starts while the rest will be acquired over the next three months. If the NHAI fails to acquire the remaining land in the stipulated time, the operator will be compensated at a rate of Rs 50 a day for every 1,000 sqm of land.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

WhatClicks promises to be an unbiased, objective, third-party audit firm that will work with advertisers and agencies alike to help build an effective and integrated digital strategy.

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video