SDMC ad revenues take a sharp northbound curve

South Delhi Municipal Corporation (SDMC) has augmented its revenues earned from advertising from Rs 45 crore to Rs 75 crore already. With the current growth, SDMC aims to achieve almost three times growth by end of the current fiscal by aiming to mop up about Rs 120 crore. Post the extensive removal drive and implementing stringent action against unauthorised outdoor media in the city, the department also started floating low-value tender to help small-time firms keeping their businesses afloat.
SDMC ad revenue generation over last three financial years

Year    Revenue generation
2014-15    53 Crores
2015-16    45 Crores
2016-17    80 Crores till November 2016
(Expected revenue by the end of FY2016-17 is around  Rs 120 crore)

Prem Sankar Jha, Additional Deputy Commissioner, SDMC, explained, “The first one or two occasions when the department floated tenders, there was no response whatsoever as no bids were received.  It was evident that the forces which were at work to scuttle every reform were at play once again. By the third tender, there were about 16 bids and there was no looking back since. The department has garnered so far Rs 75 crore. Even if the department continues earning at the present rate, the department hopes to go beyond the stipulated target of Rs 100 crore and will earn near about Rs 120 crore during the current financial year, which is almost three times the revenue earned in the last financial year.”

Roughly, the department is in receipt of Rs 9.17 crore per month which includes revenue share the department receives each month from various agencies like DMRC, DIAL/TIMDAA, etc., recoveries made by the department from defaulting advertisers and monthly license fee from tendered sites. On the revenue sharing front, the department has made significant headway in arriving at revenue sharing arrangements with various sister government departments/agencies like DMRC, DTC, DTTDC, M/s. NTBCL (DND Flyway).