Date:10/11/2007 URL: http://www.thehindubusinessline.com/2007/11/10/stories/2007111051820100.htm

Back Ads on tickets: Railway move gets mixed response

No takers at North Eastern Railway

On paper
Advertisements that are ‘socially offensive’ barred
Plan for ads on reservation charts

Mamuni Das

New Delhi, Nov. 9 The Indian Railways’ move to earn revenues by printing advertisements on tickets has met with a mixed response. While some zones like the Northern Railway, Central Railway and Southern Railway are likely to mop-up upwards of Rs 1 crore per annum through the move, there are zones like the North Eastern Railway which has evoked no interest from advertisers.

The Southern Railway, which has finalised its tender, would earn Rs 3.01 crore for a period of three years; by issuing about 8.6 crore tickets, it hopes to earn 35 paise per ticket during the period.

The Northern Railway, going by the response to its tender, expects to get Rs 6.6 crore for a two-year contract. “At the present rate of growth of passengers, it should earn 60 paise per ticket,” said official sources.

The Central Railway would rake in about Rs 2.8 crore during a two-year contract period by allowing advertisements on its tickets. This includes Rs 1.3 crore for the first year (at 26 paise per ticket).

The South Western Railway, which has firmed up its tender, also expects to raise Rs 30 lakh for a one-year contract at the rate of 25 paise per ticket (about 1.2 crore tickets are expected to be issued from this zonal Railway’ passenger reservation system).

However, advertisers seem to be uninterested for the tickets issued in North Eastern Railway. For the expression of interest invited by the zone, there was no response from advertisers.

The Western Railway would bring in Rs 66.11 lakh each year for a two-year period. Several zones like East Central Railway and South Eastern Railway are in the process of finalising their tenders.

The Eastern Railway has awarded advertising contract for unreserved tickets and would generate Rs 7,800 per one lakh tickets.

For these tickets, the Railways has barred advertisements that are “socially offensive”.

It has also prohibited advertisements regarding intoxicants, cigarettes, bidis and other tobacco products.

Meanwhile, the Railways has decided to explore the earning potential by advertising on reservation charts.

It has allowed zonal Railways to invite tenders for printing multicoloured logo of the company or product on the right side of reservation chart.

The advertisement can also be printed as a strip in the bottom of the chart.