Does government earn revenue from Onroad and roadside hoarding?

The government earns revenue from on-road and roadside hoardings through various means:

1. License Fees & Permits – Businesses or advertisers must obtain permits from municipal corporations or local authorities to install hoardings. These permits come with fees that generate revenue for the government.

2. Advertisement Tax – Some municipalities levy an advertisement tax on outdoor hoardings, which contributes to government revenue.

3. Rent for Public Land Use – If hoardings are placed on government-owned land, buildings, or structures like flyovers, bus stops, and railway stations, advertisers must pay rent or lease charges to the respective authority.

4. Revenue-Sharing Agreements – In some cases, governments enter into agreements with private advertising agencies where they share a percentage of the revenue generated from the hoardings.

5. Toll Road & Highway Hoardings – On highways managed by agencies like NHAI (National Highways Authority of India), advertising rights are auctioned to private companies, generating significant income.

6. Smart City & Digital Billboards – Some municipal bodies use digital billboards for both advertisements and public announcements, earning revenue from ad placements.

Overall, outdoor advertising is a significant revenue source for local governments, municipalities, and highway authorities.

For hoardings installed on private houses or buildings along the roadside, the revenue structure is different:

1. Rental Income to Property Owners – The private house owner earns money by renting out their space to advertisers. This is a private agreement between the advertiser and the owner.

2. Municipal Advertisement Tax – Even if the hoarding is on private property, local municipal corporations or urban development authorities often levy an advertisement tax or require a permit for legal installation. The advertiser or property owner must pay this fee to the government.

3. Zoning & Permit Fees – Some cities have zoning laws that restrict or regulate outdoor advertising on private property. Owners may need to get a special permit, which involves fees payable to the government.

4. Penalty for Unauthorized Hoardings – If a hoarding is put up without proper approval, the municipal authority can impose fines or remove it, leading to additional revenue through penalties.

So, while the main income goes to the private house owner, the government still earns revenue through taxes, permits, and fines related to such hoardings.

Charges/Rates

In Lucknow, the charges for installing hoardings are determined by both municipal license fees and rental costs, which vary based on the size and location of the hoarding.

Municipal License Fees:

The Lucknow Municipal Corporation has established a licensing system for hoardings, with fees structured according to the size of the advertisement:

200 to 300 square feet: ₹20,400

301 to 600 square feet: ₹40,800

601 to 1,200 square feet: ₹81,600

1,200 to 1,800 square feet: ₹1,02,000

These fees are mandatory for property owners who wish to display advertisements on their premises. Failure to obtain the appropriate license can result in the advertising fee being added to the property tax. 

Rental Costs:

Beyond municipal fees, advertisers often incur rental costs for the space occupied by the hoarding. These costs are influenced by factors such as location, size, and visibility. For instance:

A 30x30 feet (900 sq. ft.) hoarding near the High Court is offered at a monthly rate of ₹33,120. 

A 40x20 feet (800 sq. ft.) hoarding on Airport Road is available for ₹28,800 per month. 

A 30x20 feet (600 sq. ft.) billboard on V.I.P Road is priced at ₹55,000 per month. 

These examples illustrate that rental prices can vary significantly based on the hoarding's location and size.

Additional Considerations:

It's important to note that the total cost of installing a hoarding includes not only the municipal license fees and rental charges but also expenses related to printing and mounting the advertisement. 

For the most accurate and up-to-date information, it's recommended to consult directly with the Lucknow Municipal Corporation and local advertising agencies, as rates and regulations may change over time.

Duration 

The duration for which a hoarding stays on a structure depends on several factors:

1. Rental Agreement Duration

Advertisers typically rent hoarding spaces for a minimum of 1 month.

Common rental periods include 1 month, 3 months, 6 months, or 1 year, depending on the contract with the advertising agency or property owner.

Some premium locations may have daily or weekly rental options, but these are less common.

2. Municipal Rules & Permits

Some municipal corporations issue advertisement licenses for fixed durations (e.g., 3 months or 1 year). After expiry, advertisers must renew the permit.

Unauthorized or expired hoardings may be removed by municipal authorities.

3. Type of Hoarding

Traditional Hoardings (Printed Flex, Vinyl, etc.) – These typically remain for 1 to 6 months, depending on the contract.

Digital LED Hoardings – These can change multiple ads in seconds, running for years as long as the contract is active.

Political or Event-Based Hoardings – Temporary hoardings (for elections, festivals, or special events) usually last a few days to weeks before being removed.

4. Market Demand & Advertiser Preference

High-demand locations (e.g., near railway stations, airports, highways) often have shorter rental periods due to high competition.

In less competitive areas, hoardings might remain for several months or even years if no new advertiser takes over.

Who undertakes the hoarding at district level?

At the district level, hoarding installation, regulation, and revenue collection are typically managed by:

1. Municipal Corporation / Nagar Nigam (For Urban Areas)

In cities and major towns, the Municipal Corporation (Nagar Nigam) or Municipal Council (Nagar Palika) regulates outdoor advertising.

It grants permits, collects advertisement taxes, and ensures compliance with local bylaws.

Example: In Lucknow, the Lucknow Municipal Corporation (LMC) oversees hoardings.

2. Zila Panchayat (District Council) (For Rural & Semi-Urban Areas)

In rural areas and some semi-urban zones, the Zila Panchayat (District Council) or Gram Panchayat manages hoardings.

It issues permissions and collects fees for hoardings installed along village roads or near rural markets.

3. Development Authorities (for Planned Urban Areas)

Some districts have Development Authorities (e.g., Lucknow Development Authority - LDA), which regulate hoardings in planned zones and new townships.

They grant advertising rights in areas like malls, flyovers, and expressways.

4. Public Works Department (PWD) & National Highways Authority of India (NHAI) (For Highways & Roads)

Hoardings along national highways are regulated by NHAI.

Hoardings on state highways and PWD-maintained roads are controlled by the Public Works Department (PWD) of the state government.

5. Railway & Transport Authorities (For Specific Locations)

Hoardings at railway stations, bus stands, and metro stations are controlled by:

Indian Railways (Railway Divisions)

State Transport Departments (Bus Stands)

Metro Rail Authorities (Metro Stations)

In Ayodhya, the regulation and management of hoardings are primarily overseen by the Ayodhya Municipal Corporation. This body is responsible for issuing permits, collecting advertisement fees, and ensuring compliance with local advertising guidelines.

Key Regulatory Measures:

Content Restrictions: To maintain the city's religious atmosphere, the Municipal Corporation has prohibited certain types of advertisements. For instance, there is a ban on hoardings advertising undergarments, aligning with Ayodhya's cultural and spiritual significance. 

Prohibited Locations: Hoardings are not permitted on religious sites, government buildings, and bridges. Violations of these regulations can result in fines and the removal of unauthorized advertisements. 

Enforcement Actions: The Municipal Corporation actively monitors and removes illegal hoardings. In November 2024, a campaign led to the removal of unauthorized unipoles and hoardings from various locations, including Rampath and Pushpraj Chauraha. Future violations may lead to FIRs against responsible agencies and confiscation of illegal structures. 

Application Process:

To legally install a hoarding in Ayodhya, advertisers or property owners must:

1. Obtain a Permit: Submit an application to the Ayodhya Municipal Corporation detailing the proposed hoarding's size, location, and content.

2. Pay Applicable Fees: Remit the required advertisement fees as determined by the Municipal Corporation's guidelines.

3. Ensure Compliance: Adhere to all local regulations regarding hoarding content and placement to avoid penalties.

For the most current information and specific requirements, it is advisable to contact the Ayodhya Municipal Corporation directly or consult their official publications.