Bengaluru Metro to incur revenue loss of Rs 9.21 cr due to advertisement ban

The new BBMP advertising policy and bylaws which came into effect last year have affected Bangalore Metro Rail Corporation Ltd’s (BMRCL) non-fare revenue

BangaloreMetro

The new advertising policy and its bylaws by the Bruhat Bengaluru Mahanagara Palike (BBMP) which came into effect last year has affected Bangalore Metro Rail Corporation Ltd’s (BMRCL) non-fare revenue. According to BL Yashwanth Chavan, Chief Public Relations Officer, BMRCL, the ban on advertisements and hoardings has affected 22% of the non-fare box revenue of BMRCL from outdoor advertisements.

BMRCL rakes in a good amount of non-fare revenues from metro pillars. “On an average, each pillar was fetching a revenue of approximately around Rs 3,760 per month,” said Chavan. The non-fare revenue that comes from advertisements, parking areas, ATMs, licensing fee from retail outlets stood at Rs 44 crores for 2017-18.

“The revenue loss for the year 2018-2019 due to the ban is projected to be approximately 9.21 crores,” added Chavan.

The BBMP council approved a new draft advertising policy titled ‘BBMP Outdoor Signage and Public Messaging, 2018’ that calls for a ban on all illegal commercial billboards and hoardings in the city. The intention of the policy was to curb the illegal hoarding menace in the city. The ban on illegal hoardings will not apply to advertising and branding on skywalks, public transit stations, bus queue shelters, or car-share and bike-sharing stations where firms have invested in advertising rights in advance.

As per the new advertising policy, Bengaluru city has been divided into four advertising zones namely A, B, C, and D. Zone A includes areas such as Rajbhavan Road, Palace Road, Cubbon Park, Ambedkar Veedhi, Kumara Krupa Road etc, where no hoardings (including neons) are permitted. The policy also outlined that BBMP is the sole approving authority for all outdoor advertisement on private or public premises, building, property walls, roofs, parapets, and public structures such as poles and lamp posts. The BBMP received more than 700 objections against the policy.

Following the ban, the panels on the metro pillars remained vacant for around 5 months. 

“We are awaiting BBMP advertisement bye-laws and shortly tenders for indoor advertisements will be floated,” concluded Chavan.  

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