MCD and Northern Railway Forge Agreement on Outdoor Advertisement Revenue Sharing
The Municipal Corporation of Delhi (MCD) has officially approved the signing of a Memorandum of Understanding (MoU) with the Delhi division of Northern Railway. This landmark agreement establishes a framework for sharing revenue generated from outdoor advertisements displayed on railway properties that are publicly visible and fall under the jurisdiction of the civic body.
Key Financial Terms and Quarterly Payments
According to the draft MoU, which was prepared in November of last year, the railways will share 25% of the total revenue earned from such advertisements with MCD. These advertisements must be installed in strict compliance with the Outdoor Advertisement Policy of 2017. The financial arrangement stipulates that payments will be made on a quarterly basis, ensuring regular revenue flow to the municipal corporation. It is important to note that advertisements located inside railway stations are explicitly excluded from this revenue-sharing agreement.
Resolving Pending Issues and Finalizing Modalities
Officials from both parties met recently to discuss the implementation. While there is a mutual agreement in principle to sign the MoU, several operational details require resolution. Key issues under discussion include the specific mode of payment to be adopted by the railways for the revenue sharing and regulatory concerns pertaining to the installation of advertisements—such as hoardings, banners, or digital screens—on small properties measuring 75 square yards. Typically, such installations are prohibited without proper permissions. A senior official stated that once these matters are satisfactorily addressed, the MoU will be formally signed. A senior Northern Railway official confirmed that the modalities are currently being worked out and are expected to be finalized in the near future.
Annual Review and Detailed Reporting Requirements
The draft agreement also includes provisions for an annual review of advertisement rates, allowing for adjustments based on market conditions. Furthermore, MCD will require the railways to furnish comprehensive details of all advertisements installed. The Delhi division of Northern Railway is obligated to inform the civic body about the licence fee and the size of each outdoor advertisement site at the time the contract is awarded. This ensures transparency and proper oversight.
Amicable Resolution of Long-Standing Litigation
This MoU serves as an amicable resolution to long-pending litigation between Northern Railway and MCD, which was before the Supreme Court. The dispute centered on issues of revenue sharing and permissions for outdoor advertisements. The draft MoU explicitly states that to resolve the matter, the railways (referred to as the first party) shall share 25% of the revenue received from outdoor advertisement contracts with MCD.
Joint Reconciliation and Strict Adherence to Policy
The agreement mandates a joint reconciliation of accounts on a half-yearly basis, conducted by both the Railway Division and MCD. Additionally, the Railways will submit a consolidated list of all outdoor advertisement locations every quarter. The draft MoU emphasizes that all terms and conditions related to the size, placement, and technical specifications under the Outdoor Advertisement Policy, 2017, must be strictly adhered to. In instances of contravention or violation of technical parameters, a seven-day period will be granted for rectification before any further action is taken.
This collaborative effort between MCD and Northern Railway marks a significant step towards structured urban governance and revenue optimization from public assets in the national capital.
