Nagpur Municipal Corporation Proposes Significant Hike in Outdoor Advertisement License Fees
The Nagpur Municipal Corporation's advertisement department has put forward a substantial proposal to increase outdoor advertisement license fees by 60%. This fresh proposal is now before the standing committee for consideration, marking a significant shift in the city's advertising revenue structure.
Background and Previous Directive
Citing an earlier directive from Devendra Fadnavis, the proposal notes that revised rates were initially kept on hold after the Nagpur Advertisers' Association submitted a representation during his tenure as deputy chief minister. At that time, instructions were issued to continue charging the old rates until the matter could be reconsidered properly.
Rationale for the Proposed Increase
The department now argues that existing license fees have become outdated and fall significantly below current market rates. Municipal officials emphasized that the current fee structure has remained unchanged for years and no longer reflects the scale and value of Nagpur's outdoor advertising industry.
The administration has proposed revised monthly charges across multiple categories:
- Non-illuminated hoardings and wall advertisements: Rs 130 per square metre per month
- Fixed illuminated sky-signs and similar displays: Rs 260 per square metre per month
- Digital or LED-based advertisements: Rs 352 per square metre per month (the highest proposed rate)
Officials stated that this revision would align rates with prevailing industry standards and significantly boost non-tax revenue for the municipal corporation.
Revenue Losses and Financial Sustainability
The proposal also highlights substantial revenue losses resulting from the withdrawal of several outdoor advertising tenders following observations by the Bombay High Court, Nagpur Bench. After revising tenders and restricting permissible locations for sky-signs on civic properties, the corporation is estimated to have lost over Rs 5 crore in potential income from license fees and land rentals.
Municipal authorities maintained that maintaining existing rates is financially unsustainable, particularly as the civic body seeks to increase revenue streams to fund critical infrastructure projects. The revised fee structure has therefore been proposed to strengthen municipal finances in the upcoming financial year, with implementation targeted for April 1, 2026.
Additional Agenda Items Before Standing Committee
While the proposed hike in outdoor advertisement license fees is expected to be a key agenda item at Tuesday's meeting, the standing committee will also consider several development works:
Road Projects Across Zones
- Cement road from Sejal Motors to Bazar Chowk in Gopal Nagar (Zone 8) – proposal worth approximately Rs 34.8 lakh after tender finalization
- Cement concrete roads in Kasturba Nagar (Zone 10) – administrative approval sought for a project worth Rs 1.49 crore
- CC road in Adivasi Society area under Dharampeth zone – lowest bid of about Rs 35.3 lakh to be approved
- CC road work near Dayanand School in Jaripatka – proposal of around Rs 49.9 lakh to be cleared
Major Urban Infrastructure Project
Development of "Healthy Streets" in Shankar Nagar and Dharampeth area to be undertaken at a cost exceeding Rs 25 crore after approval of the lowest bidder.
Staffing Proposal
Extension of services for three retired deputy engineers working on contract in the project department for an additional six months, with estimated expenditure of approximately Rs 14.5 lakh.
The comprehensive agenda reflects the municipal corporation's dual focus on revenue enhancement through revised advertising fees and continued infrastructure development across Nagpur's various zones.
