Radio taxis to generate ads revenue for MCD

NEW DELHI: Eyeing an additional revenue of Rs 20 crore per month till the commencement of Commonwealth Games, the MCD on Wednesday initiated the process of inviting tenders from advertisers for awarding rights for displaying advertisements on radio taxis.

The decision to this effect was taken at a meeting of the MCD Standing Committee chaired by its chairman Vijender Gupta here.

The minimum reserve price for each of the taxis shall be Rs 15,000 per month and the tenderer will be required to quote the monthly licence fee per taxi above it.

MCD will retain 67 per cent of the revenue thus generated while the rest will be given to the concerned taxi operator.

The contract is for a period of three years and if the government approves permit for more taxis, the advertisement rights of those will also be granted to the agency.

"Till the commencement of the Commonwealth Games in 2010, the number of radio taxis is expected to go up to 20,000 from the existing 850. We expect to generate an additional revenue of Rs 20 crore per month till the Games start," Gupta said.

The civic body's move comes after it detected that a number of radio taxis were displaying advertisements in contravention to the MCD norms. Prosecution cases were also launched against 33 radio taxis in this regard.

The civic body has also written to the Delhi government's Transport Department seeking the cancellation of permits of those radio taxis which were displaying advertisements in violation of rules.

The Transport Department had then asked operators to remove such advertisements.