Government to pay 10 per cent more on DAVP advertisements

28 Feb 2009

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The government on Friday announced a 10 per cent hike in the payments made to the print media on advertisements released through the Directorate of Advertising and Visual Publicity (DAVP).

Under the fiscal stimulus package, the print media will also get waiver of 15 per cent agency commission on DAVP advertisements till 30 June 2009.

The 10 per cent increase in the current DAVP rates, (to be paid as a separate element and designated as 'special relief'), is subject to documentary proof of loss of revenue in non-governmental advertisements as compared with the same period last year. This would also be available only till 30 June 2009.

The information and broadcasting ministry had earlier promised an incentive package for the media which is caught in the burst cycle with low ad revenues and falling subscriptions.
 
Leaders of the media industry  had also demanded enhanced rates for government advertisements. The ministry of information and broadcasting  had taken up the matter with the finance ministry, which has now given its concurrence for the hike.

"The downturn has impacted the Indian media industry also. We are sensitive to their concerns," minister of state for information and broadcasting Anil Sharma said.

"We have decided to hike the DAVP rates by 10 per cent as a special relief to the media industry. The relief is subjected to documentary proof of loss of revenue in non-governmental advertisements as compared to the same period last year," Sharma said.

The minister also announced a waiver of 15 per cent agency commission on DAVP advertisements till June 30, 2009.

The decision came after leading figures of the Indian media industry met Sharma early this month and sought government's help to fight recession.  

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