MCD to sign MoU with Northern Railway for revenue share from outdoor ads on rail property

New Delhi: Municipal Corporation of Delhi (MCD) has given its nod to sign a Memorandum of Understanding (MoU) with the Delhi division of Northern Railway for revenue sharing from outdoor advertisements displayed on railway properties that are visible to the public and fall within MCD's jurisdiction.According to the draft MoU prepared last Nov, 25% of the total revenue earned by the railways from such advertisements — installed in accordance with the Outdoor Advertisement Policy, 2017 — will be shared with the civic body. Payments will be made quarterly. Advertisements installed inside stations will not be covered under this arrangement.
"We met railway officials last week. While both parties agreed in principle to sign the MoU, certain issues were raised, including the mode of payment to be adopted by the railways for revenue sharing and regulatory concerns regarding the installation of advertisements — such as hoardings, banners or digital screens — on small 75-square-yard properties, which are generally prohibited without permissions. As soon as these issues are sorted out, an MoU will be signed," an official said.The modalities of the MoU are being worked out and are expected to be finalised soon, a senior Northern Railway official said.The draft MoU also proposes an annual review of rates. MCD will require the railways to furnish details of the advertisements."There was litigation between Northern Railway and MCD pending before Supreme Court on issues of revenue sharing and permissions. In order to resolve the matter amicably, both parties agreed that the first party (railways) shall share 25% of the revenue received from outdoor advertisement contracts," the draft MoU said.The Delhi division of Northern Railway will also inform the civic body about the licence fee and size of each outdoor advertisement site at the time of award.The draft states that reconciliation of accounts will be carried out jointly on a half-yearly basis by the Railway Division and MCD. The Railways will submit a consolidated list of outdoor advertisement locations every quarter. "All terms and conditions relating to the size, placement and technical specifications under the OAP, 2017, will be strictly adhered to. In case of any contravention or violation of technical parameters, a seven-day period will be granted for rectification," the draft MoU said.