Jaipur Metro fails to lease out the space for Advertisementsravi2710 | April 17, 2017 | 0 | Jaipur Metro
The efforts of Jaipur Metro Rail Corporation (JMRC) to earn additional revenue by leasing out space for advertisements inside and outside the Metro trains and stations have entirely failed.
Only one company participated in the tender process. An official said that even the rate quoted by the company was very low.
The JMRC would invite tenders once again. For buying space for advertisement inside trains, two companies had participated in the tender process. Out of which, one company failed to clear the technical bid. The company which won the tender quoted 40% low rates.
Similarly, one company showed interest to use space on rent for advertisements on Metro pillars. This firm also quoted rates 50% less than expected.
“Not many companies have shown interest. Moreover, the companies which came quoted less rates and it was not feasible for the JMRC. The tenders will be soon invited again,” said the official.
The JMRC and Jaipur Municipal Corporation (JMC) had earlier locked horns over the right on Metro pillars. The JMRC claimed that it would earn additional income from advertisements which could be utilised for Metro operations. However, JMRC failed to reap the benefits. After witnessing continuous fall in ridership in the second year of Metro’s operations, the JMRC is exploring other ways to earn revenue.
The corporation has also drafted a proposal to lease out the space at all nine stations to open 50 retail shops. The proposal has been forwarded to the state government for final approval. The JMRC is expecting to earn a revenue of Rs 9 crore per annum after leasing out the space for these shops.
Last year, the JMRC was struggling to earn revenue as average ridership in Jaipur Metro dropped from 49,774 per day in the first month (June 2015) of its operations to just 19,390 per day in December 2016.
This has also resulted in revenue loss for JMRC as it could earn Rs 70.44 lakh per month after spending approximately Rs 3.5 crore per month on Metro train operations. The route of phase-I (Mansarovar to Chandpole) has already been criticised by the BJP government several times as it is financially not viable.