After years of delay, parking project to be tabled in Chandigarh MC house with revised fee plan

After two and a half years of delay, the much-anticipated proposed smart parking project of the Chandigarh Municipal Corporation (MC) is set to be tabled once again in the upcoming general house meeting with revised policies, including new parking rates.

The smart parking project, featuring a plan to introduce a FASTag-enabled parking management system at all 89 parking lots of Chandigarh, was first conceived in August 2022 but never tabled in the MC house. Around two and a half years later, the project still remains on paper with the MC now planning to redraft the policy and set new rates. Currently, the civic body charges ₹7 for two-wheelers and ₹14 for four-wheelers irrespective of the vehicles’ registration number.
In July 2023, the general house had decided new rates under the smart parking project, which would be charged only after implementation of the project. The MC had imposed a marginal fee hike for tricity cars, but decided to double the fee for cars registered outside the tricity. Though the decision remained controversial for months, the then Punjab governor and UT Administrator Banwarilal Purohit had in July 2024 rejected the BJP’s proposal to impose double parking fee on four-wheelers but had approved the hiked parking rates.
As per the approved policy, the first 20 minutes would remain free for pick-and-drop services. There will be no hike in the existing parking charges for two and four-wheelers for the first four-hour slab, which remain ₹7 and ₹14, respectively. However, an hourly rate system has been introduced beyond the four-hour mark to promote vehicle circulation and optimise parking space utilisation.
On August 1, 2024, the civic body had floated a tender inviting private firms for design, development, implementation, operation and maintenance of the smart parking project on public-private partnership (PPP) mode. The firms had to submit their bids by August 23, 2024, but the date was extended to November 2024, then to December 2024 and March before finally extending it to June.
Now, the MC is proposing further changes in the draft policy, including new rates and revised terms for private firms before finally opening the tender in June.
“The set rates, when combined with GST, result in impractical amounts involving paise, making payments inconvenient for residents. We aim to round the figures off for easier transactions. Additionally, the policy requires modifications, including terms with private firms, challenges in finalising the MoU with the MC and issues related to GST collections and stamp duties. Therefore, we have decided to redraft the smart parking policy with necessary amendments,” said municipal commissioner Amit Kumar.
As per MC officials, the redrafted policy will be sent to the UT administration again for final approval once it is approved in the general house meeting, tentatively scheduled for March 28. After allotment of tenders, it will take at least six months for the private firm to convert the parking lots into smart parking.
Notably, introduction of FASTag will eliminate the need for physical payment of parking fee and manning of the entry points. Under the new system, boom barriers will open automatically when a vehicle approaches the entry point. At the time of exit, fee, based on parking duration, will be deducted through FASTag.
Among other proposed features are automatic number plate recognition cameras to prevent vehicle theft and revenue loss. A mobile app is also on the cards to provide information about available parking space, along with a facility to pre-book a parking spot.
High-resolution CCTV cameras installed at the parking lots will scan the registration plates to keep a track of vehicles. The camera feed will be connected to the Integrated Command and Control Centre (ICCC) in Sector 17.