The Brihanmumbai Municipal Corporation (BMC) wants 40% profit share from the five private players who will be giving a makeover to the city’s streets.
Two years since it was first announced, the corporation’s street furniture project has come under fire from the standing committee members.
Prabhakar Shinde, Shiv Sena corporator from Mulund said the project was not tabled in the standing committee, works committee neither does it have a clearance from the civic general body.
Hence, it has violated several powers given to the committee under the BMC act.
“The contract has been issued to seven private companies, one for each zone. But till date the project has no clearance from the standing committee or the general body, which is mandatory under section 76 of the BMC Act,” he said.
The contract clause will be changed soon. Now the BMC wants 40% share of profit from the advertisement rights, which will be allotted to the contractors instead of 10% profit share.
The decision was taken in a meeting held at the mayor’s chamber on Thursday.
Rahul Shewale, chairman of the civic standing committee, who also attended the meeting said, “If the companies do not agree to 40 % profit share, the BMC will invite tenders and whoever bids the highest will get contract.”
The companies will be designing, installing and maintaining street furniture, which includes streetlights, litter bins, information kiosks, newspaper stands, among others.
According to the current proposal, the BMC won’t be spending on the project and the companies will be doing it for free, In return, they will get ‘exclusive rights’ to advertise in their zones for the next 20 years.
Of the annual revenue earned by them through advertising, 10% will be given to BMC.
Of the seven companies, two have already signed contract with the BMC, so they will not be asked to pay 40% of their revenue.