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Chandigarh municipal corporation turns to roundabouts to rev up revenue

By, Chandigarh
Jan 18, 2025 09:48 AM IST

As part of an agreement with Chandigarh MC, currently private firms manage the upkeep of these roundabouts and, in exchange, are allowed to display small advertisement boards for free

Struggling to overcome its ongoing financial crisis, the Chandigarh municipal corporation (MC) is looking to make revenue from some 30 roundabouts under its jurisdiction.

The cash-strapped Chandigarh civic body is planning to charge advertisement fee from private firms maintaining the rotaries. (HT file photo for representation)
The cash-strapped Chandigarh civic body is planning to charge advertisement fee from private firms maintaining the rotaries. (HT file photo for representation)

As part of an agreement with MC, currently private firms manage the upkeep of these roundabouts and, in exchange, are allowed to display small advertisement boards for free.

But now, the corporation is planning to introduce a new policy of charging an “advertisement fee” from firms maintaining the roundabouts — a move that is expected to bring in an annual revenue of approximately 5-6 crore.

The firms had opted for the agreement as while contributing to upkeep of civic infrastructure, they are also able to draw visibility in prominent city locations through advertisements.

However, with MC mired in severe fiscal challenges, this arrangement is set to change.

The proposal for advertisement fee will be tabled for discussion and approval in the next General House meeting of the civic body, which may be held in February or March.

“We have yet to decide on the modalities. MC may auction the roundabouts again to invite private firms afresh or may ask the present firms to continue at their sites after agreeing to pay the decided fee. Advertisement policies of other areas are also being framed to boost MC’s revenue receipts,” said civic body officials.

Officials believe that the new policy will not only help in reducing financial burden on the civic body but also ensure the upkeep of these crucial traffic points.

MC has been grappling with a severe financial crunch, forcing it to halt all development works since May 2024 and even putting long-pending road carpeting projects on hold. Such is the crisis that the corporation may not be able to even pay out staff salaries in the coming months.

For months, the MC has been seeking an additional grant of 200 crore from the Chandigarh administration, but UT administrator Gulab Chand Kataria has not announced any grant. Instead, he had directed MC officials and councillors to curtail expenses and focus on improving MC’s own revenue generation.

Subsequently, MC has taken multiple decisions to curtail its expenditure, including sacking outsourced employees who are aged 60 and above, slashing entertainment charges being provided to officers by 50% and holding zero-budget cultural activities, among others.

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