Railways clarifies that media contracts shall not exceed 5 yrs
By M4G Bureau - September 17, 2018
The Railway Board, in a circular dated September 12, 2019, has clarified that the contract tenure shall be for a minimum of 3 years and a maximum of 5 years; the tendering process for a new contract shall be initiated at least 9 months prior to the completion of the existing contract
The Railway Board, in a circular dated September 12, 2019, citing clarifications and modifications with regard to the Non-Fare Revenue (NFR) policies following decentralisation of the bid process management and delegation of powers of implementation of NFR policies to the Zonal Railways, has stated explicitly that the media contract tenure shall be for a minimum of 3 years and a maximum of 5 years. Further, the tendering process for a new contract shall be initiated at least 9 months prior to the completion of the existing contract to avoid any revenue loss to the department.
While there shall be no automatic extension of ongoing contracts, in case of any delay in the finalisation of a new contract, the competent authority shall extend the existing contract on a pro-rata basis until the finalisation of the new contact, not exceeding the period of 6 months. However, due to any exigencies if the new contract is still not finalised, the competent authority shall provide a further extension to the existing contract, not exceeding another 6 months.
The Zonal Railways may appoint the services of a Professional Media Market Evaluation Agency, if required, for inviting bids on behalf of the respective Zonal Railways after confirming the details about the available sites that are in operation or have been identified but not under the existing contract.
The license fee shall increase by 10% at end of each year of contact, after the completion of first 3 years of contact.
Zonal Railways may if considered necessary novate the existing contracts to the licensee in order to enhance the value of advertising assets. The existing contracts of its revenue shall pass on to the licensee until the expiry of the contracts.
Underlining a Media Agnostic approach, the circular stated that the Zonal Railways shall allow the use of all forms of advertisement that is appropriate, safe and feasible for the corresponding advertising assets or location, subject to restrictions under any policy of the Authority of the Outdoor Advertisement Policy.
With reference to Railway Display Network (RDN), the circular stated that digital advertising shall be encouraged in station premises, so long as they enhance the aesthetics and visual attractiveness of the station. The advertising asset packages shall be offered for bidding independently by each Zonal Railways.