Parking project in Chandigarh MC house to be tabled with revised fee plan after years of delay

The long-delayed smart parking project of the Chandigarh Municipal Corporation (MC) is finally set to be presented at the upcoming general house meeting. After more than two and a half years of delays, the revised plan includes updated parking fees and new rules. The project aims to improve parking management in Chandigarh with features like FASTag payment, slot booking through a mobile app, and CCTV surveillance.

Smart parking project delayed for over two years

The idea for the smart parking project was first introduced in August 2022 but never reached the final approval stage. The main goal of the project is to introduce an automated parking management system across 89 parking lots in Chandigarh. This includes FASTag-enabled entry and exit, automatic fee deduction, and a real-time parking slot booking system.

Currently, the parking fee in Chandigarh is ₹7 for two-wheelers and ₹14 for four-wheelers, regardless of the vehicle's registration location. In July 2023, the general house proposed increasing the fee for non-tricity vehicles. However, the proposal faced strong opposition, and the then Punjab governor and UT Administrator Banwarilal Purohit rejected the idea of charging double fees for cars registered outside Chandigarh. He, however, approved the general increase in parking fees.

In August 2024, the MC invited private firms to bid for the design, development, and maintenance of the smart parking system under a public-private partnership (PPP) model. The deadline for submission was initially set for August 23, 2024, but it was extended multiple times due to technical issues and lack of interest from bidders. The final deadline has now been pushed to June 2025.

Under the proposed policy, the first 20 minutes will remain free for pick-and-drop services. The existing charges of ₹7 and ₹14 for two-wheelers and four-wheelers, respectively, will remain unchanged for the first four hours. However, an hourly fee will be charged beyond four hours to encourage vehicle circulation and reduce long-term parking.

The new fee plan includes the following changes:

• Hourly rates will be charged after four hours of parking.
• No double charges for non-tricity cars.
• Parking charges will be rounded off to avoid issues with small amounts involving paise.

The use of FASTag will make the payment process smoother. When a vehicle approaches the parking lot, the boom barrier will automatically open after scanning the FASTag. At the exit, the parking fee will be deducted from the FASTag account based on the parking duration.

A mobile app will allow users to:

• Check available parking slots in real-time.
• Reserve a parking spot in advance.
• Receive notifications about parking availability and charges.

Improved security and management

To prevent vehicle theft and revenue loss, automatic number plate recognition (ANPR) cameras will be installed at all parking lots. These high-resolution cameras will scan the number plates and send the data to the Integrated Command and Control Centre (ICCC) in Sector 17.

The ICCC will monitor all the parking lots in real-time and respond quickly in case of security issues or technical problems. The ANPR system will also help in tracking stolen vehicles and ensuring that parking charges are properly collected.

The revised policy will include specific guidelines for the private firm responsible for managing the project. These guidelines will cover:

• Operational hours and fee collection process.
• Maintenance of cameras and barriers.
• Data privacy and security measures.

The earlier version of the policy faced multiple challenges:

1. Lack of interest from bidders – Private firms were hesitant to invest due to unclear terms and financial risks.
2. Complex fee structure – The proposed fee structure was confusing, especially for short-term and long-term parking.
3. Technical issues – Problems with the FASTag system and data collection delayed the project’s rollout.
4. Public resistance – Many residents opposed the idea of higher fees, particularly the plan to charge double for non-tricity cars.

Municipal commissioner Amit Kumar admitted that the previous fee structure resulted in impractical amounts involving paise, which created inconvenience for residents. He said, “We aim to round off the charges for easier transactions. We are also modifying the terms with private firms to make the project more attractive to bidders.”

To make the project more appealing to private firms, the MC is modifying the terms in the following ways:

• Longer contract period – Private firms will be given a longer contract period to recover their investment.
• Incentives for better performance – Firms that maintain high service quality and customer satisfaction will receive incentives.
• Flexible fee structure – The hourly fee system will allow firms to adjust rates based on demand and peak hours.
• Reduced stamp duty and GST issues – The MC is working with the UT administration to simplify tax collection and stamp duty payments.

The redrafted policy will be presented at the general house meeting on March 28, 2025. If approved, it will be sent to the UT administration for final clearance. After the tender is allotted, it will take approximately six months to implement the system.

The smart parking project is expected to provide several benefits to both the government and the public:

For the government:

• Increased revenue from automated fee collection.
• Better traffic management due to reduced parking congestion.
• Improved security through real-time monitoring.

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For the public:

• Convenience – FASTag and app-based booking will make parking easy and quick.
• Transparency – Automatic fee calculation will reduce disputes over charges.
• Security – ANPR cameras and real-time monitoring will ensure vehicle safety.

Despite the benefits, the project faces some challenges:

1. Technical setup – Installing FASTag systems, cameras, and mobile app integration will require careful coordination.
2. User adaptation – Residents will need to adjust to the new automated system, especially older drivers.
3. Maintenance costs – The private firm will need to invest in regular maintenance to ensure smooth operations.
4. Peak-hour congestion – The new hourly fee system may lead to increased parking demand during off-peak hours.

Timeline and next steps

• March 28, 2025 – Policy to be presented at the general house meeting.
• April 2025 – Policy to be sent to the UT administration for approval.
• June 2025 – Tender to be opened for private firms.
• December 2025 – Expected completion of smart parking setup.

Once implemented, Chandigarh will become one of the first cities in India to have a fully automated parking management system with FASTag and app-based slot booking.

The smart parking project in Chandigarh, once implemented, will bring significant improvements to the city’s traffic and parking management system. With features like FASTag payments, real-time slot booking, and ANPR cameras, the project aims to make parking more efficient and secure.

The revised policy addresses the earlier issues related to fees, technical challenges, and lack of bidder interest. If successfully implemented, the smart parking project will not only improve convenience for residents but also boost the city’s infrastructure and revenue generation.