The municipal corporation (MC)’s proposed smart parking policy is set to alter the way parking is priced across the city, replacing the existing flat-rate system with a time-based, slab-driven structure at 89 paid parking sites.
The civic body is set to invite bids after the proposal is placed before the General House for approval on Monday.
At present, parking in Chandigarh is largely under the control of the MC, which took over operations after earlier contractor’s arrangements ended on a controversial note.
The smart parking project has been in the works for several years but has faced repeated delays due to policy revisions, contractual issues, and administrative hurdles. Conceptualised around 2022, the project aimed to introduce FASTag-enabled, tech-based parking across the city. The MC House had approved revised parking rates in 2023, but the rollout was stalled due to disputes over GST, stamp duty, and tender conditions, forcing authorities to scrap earlier plans and prepare a fresh proposal.
Current system & its drawbacks
At present, Chandigarh follows a simple and uniform parking fee structure. For all parkings, except those in cinema halls and multiplexes, two-wheelers are charged a flat ₹7, four-wheelers ₹14, commercial vehicles ₹28, and heavy vehicles ₹70, irrespective of how long the vehicle is parked. This lack of time-based differentiation has often led to misuse of parking spaces, particularly in high-footfall commercial areas, where vehicles remain parked for extended hours at minimal cost.
Now, pay according to duration
The revised proposal (as per the tender document) introduces a structured slab system, beginning with a key relief for short stays – parking will be free for up to 10 minutes across categories. Charges rise progressively after that.
For two-wheelers, after the first 10 minutes, ₹10 will be charged for parking up to four hours, ₹15 for up to eight hours. Beyond eight hours, an additional ₹5 per hour will be levied. These rates will rise to ₹15 and ₹20 respectively after four years, and ₹20 and ₹25 after eight years.
For private four-wheelers, the fee will be ₹20 for up to four hours and ₹25 for up to eight hours, along with additional hourly charges beyond that (see box). These rates will further increase after four and eight years under the built-in escalation plan.
Commercial vehicles such as taxis, cabs, and light commercial vehicles will see a sharper hike. From the current ₹28 flat rate, the proposed charges increase to ₹35 for up to four hours and ₹45 for up to eight hours, with an additional ₹15 per hour beyond that. Heavy vehicles like tourist buses will also see rates rise from ₹70 to ₹90 and above, depending on duration, along with higher penalties for extended parking.
Or opt for passes
The revised system also formalises day passes and monthly passes, which were either absent or loosely implemented earlier. For private vehicles (including cars), the day pass is proposed at ₹60 initially, which will increase to ₹70 after four years and ₹80 after eight years. For commercial vehicles such as taxis and cabs, the day pass starts at ₹120, going up to ₹135 and ₹150 in subsequent phases.
Higher accountability, checks on malpractices
In addition to the revised pricing structure, the tender document lays strong emphasis on operational accountability and enforcement mechanisms for contractors. It mandates that parking e-tickets must be issued at the entry point through Point of Sale (POS) devices, clearly mentioning the exact entry time and vehicle number, with fee collection to be done at the exit. The responsibility of managing parking discipline has also been fixed squarely on the contractor, who will be liable for fines if vehicles are found parked in a haphazard manner, such as in moving lanes.
The tender further lays down stringent penalties to curb malpractices and ensure efficient parking management. A fine of ₹500 will be imposed for parking vehicles in unauthorised areas outside the earmarked zones or for haphazard parking. More serious violations such as overcharging of parking fees and non-issuance of parking slips will attract a penalty of ₹1,500 each. Additionally, any downtime of smart parking features or systems exceeding 24 hours from the time of reporting or occurrence will also invite a penalty of ₹1,500.
The previous contractor was found to have defaulted on licence fee payments to the tune of ₹7.26 crore as of March 2023 and allegedly evaded stamp duty worth ₹16.66 lakh, causing a substantial loss to the MC. Further, bank guarantees worth ₹1.65 crore submitted by the Zone 2 contractor were found to be fake. The Central Bureau of Investigation (CBI) stepped in to investigate the scam, exposing gross operational control issues and heavy pilferage of revenue. Repeated complaints of overcharging, haphazard parking, and unassigned/un-uniformed attendants fleecing the public further prompted the MC to sever ties and take on the task itself.
