Metro trains will carry advertisements both on the exterior and the interior.
Credit: DH FILE PHOTO
Bengaluru: Namma Metro has signed seven-year agreements with two private companies to earn at least Rs 25 crore per annum through train advertising.
According to Bangalore Metro Rail Corporation Limited (BMRCL), it signed agreements with Mudra Ventures for trains running on the Purple Line and Lokesh Outdoor for the Green Line trains.
The contract covers train wrapping and interior advertising on fixed-hand slots inside trains and is part of the BMRCL's efforts to increase non-fare revenue.
The contract with Mudra Ventures is for Rs 1.26 crore and with Lokesh Outdoor Rs 81.49 lakh. The companies were issued the Letter of Acceptance (LoA) on January 29 this year.
Initially, 10 metro trains will carry these advertisements. The BMRCL had to make a leap of faith before allowing train wrapping. Initially, officials were apprehensive that train wrapping could damage the outer skin of coaches. However, a trial run on two trains alleviated these apprehensions.
M Maheshwar Rao, BMRCL Managing Director, said: “Through this partnership with Mudra Ventures and Lokesh Outdoor, BMRCL remains committed to offering world-class metro services while leveraging new-age business opportunities to ensure financial sustainability and continued infrastructure development for the city."
Namma Metro aims to earn Rs 100 crore per year through advertisements, commercial rentals and semi-naming rights as part of its strategy to boost non-fare revenue. It plans to increase non-fare revenue to about 15% of the fare box revenue, which stood at Rs 573.91 crore in 2023-24, DH reported on March 1.