By: Rajiv Raghunath
Last updated : May 11, 2020 9:50 am
The newly formed Federation of Advertising Agents of Indian Railways seeks waiver of license fee for 1 year, and other concessions that will help the media concessionaires to bring their business back on the rails after the Covid-19 crisis abates
In the effort to alleviate the acute business challenges that confront railway advertising concessionaries in the face of suspension of passenger train services and shutdown of railway stations across the country, following the Covid-19 outbreak, the newly constituted Federation of Advertising Agents of Indian Railways has approached Railway Minister Piyush Goyal with a charter of requests.
The Federation has also requested for constituting a Task Force that may look into the representation in a time-bound manner. It was also suggested that the Task Force may have three representatives from the Federation to “review, discuss, study and resolve the appeal”.
The Federation in its representation has highlighted that the railway media concessionaires have been collectively contributing non-fare revenues of Rs 350 crore to the Railways every year, without the Railways incurring any significant expenditure toward the advertising activity.
It was also cited that the members of the Federation through their business operations have created direct and indirect employment for over 1 lakh people.
The Federation of Advertising Agents of Indian Railways has pointed to the sharp dip in advertising business in the wake of contraction of the national GDP, and added that the squeeze of ad dollars will have immediate- to medium-term impacts on railway advertising business.
The Federation’s plea has been made on the premise that a compassionate and considerate assessment of the current situation of the railway advertising business, backed with adequate waivers and safeguards, will encourage the concessionaires to rebuild the business once normality returns, while ensuring business continuity and passenger services. It would also encourage the concessionaires to stay invested in the rail media assets for the entire duration of the contracts that are in force.
Importantly, support from the Railways to the media operators at this juncture would also encourage this industry to pro-actively consider future investments in railway media and advertising opportunities when the overall business environment improves.