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

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Ushering the launch with a campaign titled ‘The New Way to Get Rich’ showcasing how technology gets millennials closer to their financial dreams

Ogilvy and Love Matters conceptualised a campaign that aimed to change the conversation and imagery that is associated with the LGBTQ community and lesbians in particular