BMP wants sponsors for bus shelters

BMP wants sponsors for bus shelters

The Hindu

Less than 500 of the over 800 scheduled bus stops in the city have shelters

# BMP earns Rs. 30,000 to Rs. 50,000 as rent for one year from each bus shelter
# Many bus stops in outer suburbs and peripheral areas do not have shelters

Bangalore: With bus shelters in prime high traffic areas already taken up by outdoor advertising agencies, Bangalore Mahanagara Palike is now trying hard to find takers for other spots, where shelters need to be built for city bus commuters.

Of more than 800 scheduled bus stops in Bangalore, passenger shelters have been provided for less than 500.

For close to two years, BMP has been attempting to find advertisers and agencies who can sponsor more bus shelters.

Preference

Advertising agencies prefer to spend money on bus shelters in prime areas where the footfalls are heavy and where bus schedules are more frequent.

The BMP works on the basis of calling for tenders each year and awarding a package of bus shelters to the highest bidder. The agency then builds the shelters and hosts advertisements of clients.

The BMP stands to earn Rs. 30,000 to Rs. 50,000 as rent for one year from each bus shelter. The advertisement tax collected each month comes to Rs. 57.50 a square metre.

The advertising agency has the option of collecting higher margins from clients, which makes the proposal commercially viable.

But, advertisers look for good returns on their investment and this almost rules out bus shelters in the outer suburbs and peripheral areas of the city, where bus services may be less frequent and the passenger occupancy lower.

Classification

The bus shelters vary by dimensions and advertising space available and are classified as Type A, B, C and D.

Type D usually has more advertising space available, and more such shelters are planned and tenders are to be called for them.

Bus schedules and passenger traffic obviously demand smaller or larger shelters, and the area of advertising space made available.

Advertising agencies have in the past invested in very sleek and modern bus shelters with steel railings, leak proof roofs and polished granite benches and back-lit advertisements. But many were vandalised in the absence of proper security and were not found viable, some agencies said.

With revenues of more than Rs. 2 crore involved, the civic body is reported to be examining other options to enable more bus shelters to come up in areas where they are badly needed.

One may be to accept even a lone tender if there are no other offers.

Another may be to offer more advertising space.