Thursday, 03 December 2009 08:00 (IST)
Ahmedabad Municipal Corporation has invited bids for grant of advertising rights on gantries in the central and new western zones of the municipal corporation. In the central zone, the sole location chosen is near Sahapur gate, for which the corporation has set an annual minimum license fee of Rs 5.06 lakh.
Ahmedabad civic body call for tender for advertising rights on gantries Ahmedabad civic body call for tender for advertising rights on gantries In the new western zone, the locations selected are Shyamal Cross Road, near Big Bazar (annual minimum license fee of Rs 18.22 lakh); Shyamal Cross Road, near Jalaram Paratha (annual minimum license fee of Rs 18.22 lakh); Shyamal Cross road, towards Manek Bagh (annual minimum license fee of Rs 12.15 lakh); Shyamal Cross Road, towards Prahlad Nagar (annual minimum license fee of Rs 12.15 lakh); and on the way from Gandhinagar Highway to Prahlad Garden (annual minimum license fee of Rs 12.15 lakh).
Tenderers shall submit with the corporation separate tender documents for each of the gantries listed above, latest by January 8, 2010.
AMCThe corporation has set the earnest money deposit at 10 per cent of the annual license fee for each gantry. The rights are being offered for a period of three years.
The license fee stated in the tender notice is the minimum license fee, and 25% of that needs to be deposited as security deposit, failing which the EMD shall not be refunded.
In addition, the bidders shall furnish their shop establishment number, sales tax number, income tax clearance certificate and service tax registration numbers at the time of submitting their tender documents.
Source n2m
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AHMEDABAD: The global slowdown is draining the Ahmedabad Municipal Corporation (AMC) coffers. Till a few years ago, Ashram Road, was the costliest location for advertisers and display boards. This year, there are no takers for this central business district zone. In fact, at many of the prime locations, advertisement display rates of the AMC have crashed by more than half this quarter.
The highest rate for a single hoarding space at Nehru Bridge near Patang Restaurant, which earlier would have cost Rs 23,77,500, has come down to Rs 12, 83,850.
The poor response of advertisers vying for AMC advertisement space and hoardings have caused worries for civic authorities. Municipal commissioner, AMC, IP Gautam said, "The number of advertisers have gone down. We had to cut down the advertisement rates while re-tendering the tenders."
Last year, a cellular company had signed a contract of Rs 5.4 crore when AMC leased out advertising space on Ashram Road but later payment issues with the civic body brought the deal crashing.
Deputy municipal commissioner, and in charge of Estate, UC Padia added, "Till now, there has been a low turnout of advertising companies for buying the road space and hoarding. Tenders have been re-issued at least thrice because none of the bidders were meeting our expected revenue values."
"Initially, AMC authorities had reduced lease value of the advertisement space by 25 per cent from the existing value to attract the buyers. In the re-tendering process, we had to cut down 10 per cent more," added Padia.
Ashram Road, CG road, SG Highway and Vastrapur among others have been one of the most highly paid stretches for leasing or putting up billboards for the past several years.
The civic body has offered to rent out hoarding in six municipal zones of AMC. After the successful launch of Bus Rapid Transit System(BRTS) buses, AMC authorities were tapping into a lucrative advertisement model for BRTS.
However after the lukewarm response from the advertisers for BRTS, AMC authorities have now re-tendered the issue and the contract period has been extended to two years from initial one year. Gautam said, "After re-tendering for BRTS, we have two bidders while earlier there were none. Recession in the market may have an impact on the companies coming for the bidding process."
Source TNN 30 November 2009,
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