Illegal hoarding in Mahadevapura.
Credit: DH File Photo
Bengaluru: The BBMP’s big bet on outdoor advertising to fill its coffers has hit a wall.
Despite eyeing Rs 500 crore from advertisement rights in its 2024–25 budget, the civic body ended the financial year with a grand total of zero.
Reason: The new advertisement policy, designed to open up the sector, is still caught up in a case pending before the High Court of Karnataka.
Modelled along the lines of Delhi’s ad policy, the BBMP’s new framework was meant to replace the 2018 Outdoor Signage and Public Messaging Byelaws, which had placed a near-blanket ban on commercial hoardings in Bengaluru. However, that ban had a loophole — advertisers could put up signage if it came bundled with public infrastructure like bus shelters or public toilets. This provision was exploited.
The new policy — drafted in November 2023 — sought to bring transparency, end monopoly, and generate fresh revenue for the fund-starved BBMP. The civic body even upped its target to Rs 750 crore in the latest budget, hoping advertising would become a reliable second stream of income alongside property tax.
With the policy still under judicial scrutiny, revenue hopes are in limbo.
BBMP Special Commissioner (Revenue) Munish Moudgil said that the civic body was planning to request the high court to de-link the new policy from the 2017 case. “Until it’s notified, we will be losing crores in revenue,” he added.
It’s not just the BBMP feeling the pinch. Namma Metro’s plans to place advertisements on pillars and outside stations are also stuck. It had set a target of earning in crores, as the government agency is under pressure to increase its non-fare revenue share, given its rising borrowings.
The outdoor advertising industry is equally frustrated. “The delay is hurting everyone — civic agencies, advertisers, and even the public,” said Manmohan Singh, secretary of the association in Bengaluru, expressing dissatisfaction over the delay.
“Advertising is an important stream of revenue for government entities. In the absence of a new policy, the PPP-based advertisements will continue to enjoy monopoly — even while violating norms and avoiding payment of fees and taxes to the tune of Rs 500 crore,”
he said.