Metro gets OK for ads in stations; can avoid fare hikes

Namma Metro, which has been bleeding financially, has got a shot in the arm with Chief Minister Basavaraj Bommai approving its request to sport indoor advertisements by installing LED boards, static billboards and escalator branding etc. The approval, expected to fetch an additional revenue of Rs 30 crore a year, may also help authorities sustain Metro services, without increasing ticket prices.

On Monday, the Urban Development department (UDD) issued the order clarifying that the Bruhat Bengaluru Mahanagara Palike (BBMP) outdoor signage and public messaging bylaws do not apply to indoor advertising. The bylaw, the order states, only bans outdoor advertisements in the city.

In the order, which was issued after Bommai's approval, the UDD permitted displaying advertisements inside Metro stations as well as in Metro coaches. DH has accessed a copy of the order. BMRCL, it is learnt, did not seek permission for placing advertisements on Metro pillars due to the existing ban on outdoor advertising. BMRCL MD Anjum Parvez said indoor advertising will reduce Metro’s dependence on ticket fares to sustain operations.

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“We have already prepared the plan for placing advertisements inside Metro stations. The proposal is expected to fetch Rs 30 crore. We will float the tenders in a week or two,” he told DH.

Sources said BMRCL has identified 16 stations which will see a variety of advertisements, including escalator branding, train ramping and digital boards. During the financial year 2021-22, BMRCL had earned non-fare box revenue of Rs 30.3 crore from licence fee, retail outlets, ATMs at Metro stations, parking lots and inside train advertisements etc.

Rs 614-crore loss

In 2021-22, BMRCL suffered a revenue loss of Rs 614 crore in operations. While the Metro earned around Rs 207 crore by selling tickets, the cost of operating the Metro, including overhead expenses and staff salaries came up to Rs 821 crore. As ridership has picked up and currently stands at around five lakh a day, BMRCL believes it will be break-even this financial year.

“Ridership has crossed five lakh a day. This has put us in a comfortable position now. There was a time when there were hardly any passengers due to Covid-19 pandemic. Once the Whitefield line opens, we expect the ridership to cross eight lakh a day,” the managing director said.