Ludhiana municipality to earn Rs 90 lakh each month from ads

After neglecting it for years, the civic authorities in Ludhiana have suddenly discovered a goldmine in advertising.

From a revenue target that stood at less than Rs 1 crore for 2005-06, the advertisement section of the Ludhiana Municipal Corporation is now aiming to collect Rs 90 lakh every month. Interestingly, the advertisement spaces around the city were given gratis even a few months ago.

The municipal corporation authorities said they were set to streamline the advertisement policy, a point that some of the councillors have been stressing for quite some time.

An official of the advertisement section of the Municipal Corporation said the revenue could also go beyond the Rs 90-lakh target because "things were being streamlined in a phased manner".

He said the licence for putting up advertisements at 56 bus stands, 10 garbage dumps and more than 600 kiosks, on the main roads of the city, was finally rejected last week.

The period of the licence had expired on March 31 but the advertisers had been using the sites without paying anything.

Interestingly, all garbage dump sites were given free of cost to the contractor with the agreement that a green patch would be maintained. The kiosks, located near the streetlight poles, enjoyed similar privileges. The contractor just had to maintain the green belt of the road-divider without paying anything.

However, the sites were not maintained by the contractors, who took money from reputed companies to put up advertisements in the allotted spaces.

The scene has changed now. For all the 10 garbage sites, the civic body has got offers ranging from Rs 10,000 to Rs 80,000 per month, excluding the advertisement tax.

In addition to this, 280 poles have been leased out and the authorities are earning Rs 14 lakh a month, said the official. The bus stands are generating a revenue of Rs 8 lakh per month with advertisers offering Rs 25,000 per month for some of the sites.

And for display at a kiosk near streetlight poles on flyovers of Dholewal bus stand and Dhuri line, the companies have offered to pay Rs 1,100-1,300 every month.