Govt rolls out red carpet to woo billboard bidders

Bengaluru: In an effort to make advertisement tenders more attractive to bidders, the state government has proposed draft amendments to the Greater Bengaluru Area (Advertisement) Rules, allowing a 40% reduction in payable advertisement space.

In a notification dated April 13, the Urban Development Department (UDD) has published the draft rules and invited objections and suggestions within 30 days, after which a final decision will be taken.

The amendment introduces flexibility where tenders fail to attract bids. In such cases, the five city corporations or the Greater Bengaluru Authority (GBA) may allow reduced payment obligations in subsequent tenders.

Under the revised provision, the successful bidder in a re-tender may be required to pay advertisement fees on 40% of the total space assigned or the space actually erected, whichever is higher, during the initial period.

Officials said the move is aimed at making tenders more viable and improving participation, especially in stretches where advertisement potential has remained underutilised.

The draft rules also introduce a stricter enforcement mechanism to prevent delays in revenue realisation.

If a bidder fails to start paying for the full assigned space within 12 months of signing the agreement, the contract for the roads or areas concerned will be deemed terminated.

The changes come at a time when all five corporations are betting on advertisement revenue to meet growing expenditure.