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Policy on Out of Home Advertising

Commercial Circular No. 04 of 2017 · 2017-01-10
Circularadvertising

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Circular numberCommercial Circular No. 04 of 2017
Date2017-01-10
TypeNFR Policy
Topicadvertising
Official PDFindianrailways.gov.in

Summary

Policy on Out of Home Advertising o Indian Railways shall offer advertising assets

Text of the circular

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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