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| Circular number | Commercial Circular No. 04 of 2017 |
|---|---|
| Date | 2017-01-10 |
| Type | NFR Policy |
| Topic | advertising |
| Official PDF | indianrailways.gov.in |
Policy on Out of Home Advertising o Indian Railways shall offer advertising assets
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD No. 201 7/NFR/1/1 New Delhi, dated 10/01/2017 The General Managers All Indian Railways (Commercial Circular No. 4 of 2017) Sub: Policy on Out of Home Advertising Preamble: Hon’ble Minister of Railways had announced during the Railway Budget 2016-17 that “Although we enjoy the highest captive eyeballs in a railway system internationally, we earn less than 5% of our revenues through non-tariff sources. Many of the world railway systems generate 10% to 20% of their revenues from non- tariff sources. Over a period of the next five years, we will strive to reach this world average by monetizing assets and undertaking other revenue yielding activities. Indian Railways has vast physical infrastructure which is ripe for commercial exploitation through advertising. We intend to give special focus to exploiting advertising potential of our stations, trains and land adjacent to tracks outside of big stations. We will make efforts to use our customer-interfacing assets in every manner possible for earning advertising revenues. In all, we target to increase the advertising revenues by more than 4 times the current revenues.” Objective: The objective of this policy is to lay out the various conditions in monetising advertising assets apart from the station area such as circulating areas of class A1-F category stations, Road over Bridges, Road under Bridges, level crossing gates, Railway Page 1 of 5 colonies, Railway workshops, Railway production units, Railway land along the tracks etc. Main Features of the Policy: ¢ Advertising Rights Approach: o Indian Railways shall offer advertising assets * at identified sites which are locations where existing contracts are operational « sites identified but at which no present contract is operational " locations have neither been allotted nor identified ' earlier by Railways o The licensee shall have a rights based approach. No particular site or available space in terms of square metres shall be committed, except for the identified sites where Railways will grant the locations as far as feasible o The license granted, by the rights based approach, shall include rights for all advertising assets owned by Indian Railways at the advertising locations in the areas as specified in the package and not part of the negative list e Negative list of advertising assets: o The negative list includes station building area, railway track land/ area situated within the stations building complex, foot over bridges (leading to the platforms), purely administrative offices, heritage buildings and other restricted areas e Package sizes: o The advertising asset package sizes shall be offered for bidding for each zonal Railway separately, except for Mumbai area which will be combined for both Central and Western. However, Railway Board may combine several zones in a package in order to increase revenue from the assets. Even if the packages contain several zonal railways, the bid shall be offered for each Zonal Railway separately and the highest bid received cumulatively for the package shall be awarded the license. The agreement shall be signed by each Zonal Railway separately even in case of combined package Page 2 of 5 e Tendering Methodology: o RITES Limited in association with the PMMEA, shall invite open bids on behalf of the Zonal Railways after confirming the details about available sites which are in operation or have been identified but not under contract. The Zonal Railway will confirm the estimated earnings from all assets to RITES. RITES will not fix the estimated earnings from the tender packages which will be less than the estimated earnings determined by Zonal Railways. o The bidding shall be conducted through ascending e- auction method only e Contract Tenure: o Indian Railways shall grant advertising contracts for a tenure of 10 years ¢ Right of Refusal: o The Right of First Refusal shall be offered to the Licensee after com
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