Ad Firms Cry Foul Over Samadhan Account Award Unt

Shortlisted advertising agencies are crying foul over the finance ministry's decision to seek a second round of presentations for awarding the Samadhan account. After a round of presentations some time back, the government had shortlisted three agencies, HTA, Lintas and FCB-Ulka.

"But now we learn that another round of presentations has been planned after hectic lobbying by agencies that did not make it to the final round," an executive of one of the shortlisted agencies said.

A finance ministry official yesterday admitted that another round of presentations had been lined up.

"Since we had not taken a final decision, there will be more presentations around August 14," the official said.

 

The official refused to name the agencies that will participate in the second round. Industry sources, however, claimed that R K Swamy-BBDO would be one of them.

The final decision on the Samadhan account will be taken by August 20.

The scheme will come into effect on September 1.

The finance ministry expects to net about Rs 1,500 crore from the scheme, unveiled by finance minister Yashwant Sinha in his budget speech to unlock tax dues stuck in legal disputes.

According to finance ministry estimates, nearly Rs 12,000 crore are locked up in 1.75 lakh disputes involving customs and excise violations.

A media blitz on Samadhan, the government feels, can help realise a chunk of the locked up money.

The government's media blitz plans have also been influenced by the spectacular success of the Voluntary Disclosure of Income Scheme (VDIS) last year which, too, was widely publicised.

Sources, however, pointed out that the Samadhan account would not be as big as the VDIS one. Worth Rs 30 crore, VDIS publicity was jointly handled by HTA and Ogilvy and Mather, a rare occurrence in Indian advertising.

Satellite channels are likely to be used as outlets for the Samadhan scheme.

The VDIS campaign had had high visibility on Zee TV and Star Plus. The Reserve Bank of India (RBI) made an exception to its rules by allowing the finance ministry to advertise VDIS on satellite channels. Only exporters with a stipulated turnover are allowed to advertise on satellite channels beamed into India from outside the country. Advertisement on satellite channels has to be paid for in dollars.