DMRC seems to rely on outdoor advertising to recover loss
By M4G Bureau - September 29, 2020
Delhi Metro Rail Corporation has incurred loss of INR 1,609 crores; the country’s biggest rapid metro system earns roughly 40% of its non-fare revenues from advertising
As Delhi Metro Rail Corporation (DMRC) has resumed its services, the biggest rapid metro system of the country is working on balancing its financial stress incurred due to shutdown of metro operations. In order to recover the loss of around INR 1,609 crore, the DMRC seems to be concentrating on revenue from advertising which accounts close to 40% of its total no-fare revenues.
The corporation has rolled out four tenders to give out advertising license over the course of two weeks after resuming operations. The latest tender is to allot exclusive advertising rights through digital media inside ITO metro station on line-6 of DMRC network for nine-year-duration. It is single stage two-packet system e-tender through which a minimum of 50 square meters digital advertisement space is proposed to be licensed out. The closing date to submit bids is October 12, 2020. The tender details can be obtained from here.
Prior to this, DMRC opened bids for licensing of exclusive outdoor advertising rights on selected DMRC civil structures i.e. from Mayur Vihar Pocket-I to Gokulpuri metro stations of Line-7 (Pink Line) in DMRC network. The tender includes a few important stations located at popular places in Delhi such as Mayur Vihar, Anand Vihar, Karkardooma Court and Welcome which offers an area of 245.35 square meters. The bids will open on October 1, 2020.
DMRC also offers licensing of exclusive outdoor advertising rights on selected DMRC civil structures i.e. from Yamuna Bank to Anand Vihar (excluding Yamuna Bank and Laxmi Nagar) metro stations of Line-4 (Blue Line) in DMRC network. In this, DMRC allows branding on civil structures- cantilever panels and double-sided pillar panels with total area of 250.88 square meters. It also includes the branding space on bridge panel on three stations. The tender is slated to open on September 30, 2020.
Understanding the uncertain market conditions, the corporation has kept flexible tender durations. The above tenders have a provision of three-year extendable for further three years and again for further three years duration after negotiation from the date of first handing over of the advertisement spaces with minimum chargeable area in one lot with lock-in period of one year in each tenure/extended tenure of the contract.
The fourth tender is for exclusive outdoor advertising rights on DMRC’s selected civil structures under East Delhi Municipal Corporation i.e. from Dilshad Garden to Shastri Park metro station of Line-1 (Red Line) in DMRC network. The bid will open today for this.