Greater Chennai Corporation eyes non-tax revenue from citywide advertising rights

CHENNAI: The Greater Chennai Corporation (GCC) has invited bids for citywide advertising rights under six PPP packages covering civic assets across all 15 zones. The tenders, issued by the Buildings Department, together guarantee the civic body at least Rs 73 crore a year, permitting advertising on more than 12,000 streetlight poles, over 1,500 parks and playgrounds, 36 bus bays, and numerous civic buildings and bridges maintained by the GCC for nine years.

"The plan has been under discussion for months to strengthen the revenue generation for the corporation as well as to regulate it," said a senior GCC official. Multiple advertising formats are permitted, including static and illuminated displays on poles, signage within parks and civic buildings, and digital formats where allowed. Each package specifies the maximum advertising area for every asset category, and 10 per cent of the total display space must be reserved for the GCC's public information messages.

It also prohibits political, religious, alcohol and tobacco-related materials advertising and requires that installations do not obstruct traffic signs, pedestrian movement or visibility. The revenue payable to the GCC was expected to rise annually with the stipulated 5 per cent escalation, above the base reserve value fixed for each package.

The move comes at a time when the Corporation's budgets continue to show limited growth in non-tax income. Budget documents indicate that for every rupee GCC earns, about 35 paise come from tax revenue, while non-tax sources contribute only around five paise, with the remainder drawn from assigned revenues and grants.

Non-tax income, which includes fees and user charges, rent from municipal properties, sale and hire charges, interest earnings and miscellaneous receipts, amounted to Rs 388 crore in 2023-24, about Rs 460 crore in the 2024-25 Budget Estimates, and roughly Rs 500 crore in the 2025-26 Budget Estimates.

In comparison, the local body's tax revenue stood at Rs 2,220.98 crore in 2023-24, Rs 2,352 crore in the 2024-25 Budget Estimates, and Rs 2,676 crore in the 2025-26 Budget Estimates, underscoring the relatively small role of non-tax receipts in the Corporation's overall revenue.