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Pay to sport ads on cars, firms told

The next time a pizza delivery scooter whizzes past you, you might not be able to recognise it, reports Vibha Sharma.

india Updated: Jan 15, 2007 01:41 IST

The next time a pizza delivery scooter whizzes past you, you might not be able to recognise it. The Municipal Corporation of Delhi (MCD) has ordered all private companies to stop using their service or delivery vehicles as advertisement space —- unless they are prepared to pay a hefty publicity charge.

In a month’s time, the MCD will start impounding outdoor broadcasting vans of news channels, service/delivery vans of soft drink majors and similar vehicles owned by private companies if they do not pay monthly advertising charges.

The MCD’s remunerative project’s cell had last month issued a notice in leading newspapers laying down the terms and conditions for allowing advertisements on service/delivery vehicles of private companies. The companies were asked to register with the MCD – along with the license number of their vehicles. “Till now, we have got no response. We are now in the process of issuing individual showcause notices. If they fail to respond within sufficient time, we would start impounding them,” said Amiya Chandra, additional deputy director, remunerative project’s cell.

The advertising rates for service vehicles are less than delivery vehicles. To allow advertisements on service vehicles, the companies would be charged an amount at the rate Rs 25 per feet in which 50 per cent of the vehicle space would be permitted for ads. No ads, however, would be allowed in the front. In case of delivery vehicles, the companies will be charged at the rate of Rs 50 per square feet or a reserve price of Rs 20,000 – whichever is higher. In this case, the MCD would allow ad on 75 per cent of the vehicle space.

“The charge is a monthly one and we expect the corporation to rake in crores of rupees under this scheme,” said Chandra.

The companies have the option of removing the ads from their service/delivery vans if they do not want to pay up. “The huge ads painted on such vehicles are a definite form of free publicity for the companies. The scheme will not only bring in revenue, but also lay down regulations for allowing ads on service/delivery vehicles,” said a senior MCD officer.

The scheme to tax the service/delivery vehicles had been cleared by the MCD’s standing committee last year when members were discussing proposals to add to the revenue of the cash-strapped corporation.

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First Published: Jan 15, 2007 01:41 IST