Coimbatore Corporation took an initiative to reconstruct 259 +27 bus shelters with stainless steel material of pre approved design, size in coordination with the Police, Transport, Highways departments, TN State Transport Corporation and District Administration in 2010 through private agencies on advertisement rights under Public Private Partnership (PPP) mode. These agencies are selected through competitive bid. Now 225 shelters are completed. Corporation is receiving Rs.1.59 crores as license fee per annum apart from the advertisement tax. The cost per shelter is about Rs.6.5 lakhs per shelter including all the facilities.
Under PPP mode 6629 mts length of foot path is developed through 3 private agencies, which were selected through competitive bid. There are 3 agencies involved in the development of footpaths at their own cost on advertisement rights apart from the collection of permission fee of Rs.73, 93,150 per annum. The permission period is 3 years with a renewable provision of 3 more years. Thus the Corporation not only saved the capital expenditure of creating these assets but also earning revenue of about Rs.3.0 crores per annum, apart from the appropriation of hoardings tax from the District Collector.