This is the sixth time that the civic body has floated tenders for installing kiosks in all the zones of the city.
If at first you don't succeed, try again. Ahmedabad Municipal Corporation (AMC) seems to be following this proverb diligently. Despite having no takers for hoardings and kiosks across the city, the civic body is no mood to relent.
This is the sixth time that the civic body has floated tenders for installing kiosks in all the zones of the city. Interestingly, the civic body this time has floated tenders for the kiosks but with lesser upset value, expecting a good number of agencies to bid.
The re-tenders invited by Ahmedabad Municipal Corporation (AMC) for installing kiosks across the all the zones of the city, raise a serious concern on the economy of the city, the spending capacity of the parties and the interest of the agencies to invest in.
A few months ago, when AMC floated tenders for kiosk, the upset value fixed for west zone's 1,600 kiosks was Rs81.75 crore, which has been floated for Rs62.54 lakh. Similarly, for north zone's 550 kiosks, the earlier upset value was Rs16.15 lakh, which has been reduced to Rs12.35 lakh this time.
For south zone, AMC offered the 1,000 kiosks at an upset value of Rs20.18 lakh, which this time is available at Rs15.44 lakh.
The east zone's 1,050 kiosks were available at Rs12.11 lakh last time, while currently they are available at Rs9.26 lakh. For central zone's 1,500 kiosks, AMC had set the upset value of Rs48.45 lakh, but now has reduced to Rs37.07 lakh.
Is cartelization among agencies the reason behind the total lack of response to the tenders five times? Answering this, deputy municipal commissioner at AMC for estate, IK Patel said, "There is no chance of cartelization among the agencies. With the increasing number of agencies emerging everyday, there is definitely competition. Probably, the agencies are finding the upset cost too high and hence are not filling the tenders."
Another official of AMC requesting anonymity said, "Majority of the main roads are covered by BRTS and it has its own advertising rates and kiosks. Also, the advertising agencies are not interested in the rest of the roads, as they are not main roads and for such small roads the agencies find the rates very expensive."
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