AMC is losing some Rs22 crore due to its inability to sell hoarding space. The loss is despite the fact that the AMC has already slashed its hoarding rates by almost 50%.
The economy may be in revival mode, but the bare advertisement hoardings of the Ahmedabad Municipal Corporation at many posh areas in the city tell a different tale.
The civic body's inability to sell the advertisement space on these hoardings is costing it a bomb. The AMC is losing some Rs22 crore due to its inability to sell hoarding space.
The loss is despite the fact that the AMC has already slashed its hoarding rates by almost 50%. The civic body has also floated tenders five times to sell the premium hoarding space to private advertisement agencies.
But it seems the civic body has failed to arouse the interest of private advertisement agency bidders. Some officials say that all is not lost as the civic body has received interest for 26 hoarding sites at not so posh places after it slashed the rates.
If one were to consider the positive response to the 26 hoarding sites, it would mean only 9% of the hoarding space out of a total of 221 hoardings (tenders for west zone's 100 hoardings are yet to be opened) in five zones generated any interest.
Municipal commissioner IP Gautam said the response from bidders was not good.
"For majority of the zones the response is not good despite our best efforts to attract revenue. But we are hopeful as we plan to come up with a better policy to sell premium space," said Gautam. The AMC had initiated the procedure to invite tenders for hoardings in newly developed sites in all six zones from April 1, 2008. This was for the sixth time that the civic body was inviting tenders for the hoardings.
The AMC could get response for hoardings in just 26 sites. It should also be noted that after the civic body invited bids in April last year, rates for hoardings in most of the areas have trebled since then. "Advertisement agencies which had bid for some of the areas also pulled back their bid because of the increase in hoarding rates," said one senior AMC official.
Another top official said that the AMC's move to sell its 321 new hoarding sites can also help the private advertisement agencies earn crores by way of business.
Some of the 321 sites are in posh areas like Thaltej to Iscon Circle on SG Highway in new west zone, University Road and Navrangpura in west zone, Lal Darwaja- Shahibaugh railway under bridge in central zone and Kankaria football ground and Paldi in south zone. But so far few seem interested.
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