AMC’s billboards for hire to cost 50% less

The Ahmedabad Municipal Corporation (AMC) is preparing to fight the repercussions of recession. After facing a dearth of bidders for prime outdoor hoarding sites and withdrawal of ADAG’s Big Streets from Ashram road, the town planning and estate committee of the AMC has proposed to slash upset value of the sites by 50 per cent.

The proposal, if sanctioned, will save the civic body from incurring a huge loss, which is likely if it fails to attract advertising agencies to buy hoarding sites. The AMC has been inviting tenders for selling hoarding sites in all zones including SG Highway, for which the rates are Rs12 crore and Rs4 crore for Ashram road, but has failed to pull in any takers. On an average, Rs25 crore worth tenders are lying unsold.

“Advertising agencies cannot afford buying hoarding space since a majority of the companies have cut down on advertisements. We therefore decided to work out a way to attract bidders so that AMC does not suffer a loss in income,” said Anil Patel, chairman of town planning and estate department. A proposal has been presented before the commissioner seeking a reduction of 50 per cent in the upset value of hoarding sites. “Another alternative is to reduce the tenure of contract. For instance, currently, we are selling a hoarding near Football Ground at Rs1.18 lakh for a period of three years, but we can bring it down to Rs59,000 for a year,” added Patel.

Senior members of the civic body believe that the move will not only help the AMC regain its lost ground but will also benefit the advertisement agencies.