The implementation of smart parking in Chandigarh is expected to take place only in mid-2025.

Following numerous queries raised by over 25 private companies regarding the smart parking project, the Chandigarh Municipal Council (MC) has once again extended the bid submission deadline.

It is therefore unlikely that MC’s 89 car parks will be equipped with the long-awaited smart features before mid-2025.

On August 1, the city body announced a tender inviting private companies to design, develop, implement, operate and maintain the Smart Parking project in a PPP (public-private partnership) mode. Companies were earlier allowed to submit their bids until August 23, but that deadline was extended to September 23 and now it has been extended again by a month.

“Around 25 private companies have expressed interest in the MC parking proposal. But they have raised certain doubts which need to be resolved. One of the major doubts was regarding the GST payment by the private company to the government. These issues are being discussed and raised at a higher level and only after getting all the answers, we will finalise the company for further process,” said an MC official privy to the developments.

Once the bids are received, MC will conduct a financial and technical evaluation process. The selected agency will need at least six months to transform MC’s 89 parking lots into smart parking lots.

The city’s parking lots are divided into two zones. Zone 1 includes the parking lots in the southern and eastern sectors, including sectors 20, 26 and 34. Zone 2 includes the northern areas, such as sectors 7, 8, 9, 17, 22 and Sukhna Lake.

The project has been hanging by a thread for two years

The Smart Parking project, which involves a plan to roll out a FASTag-based parking management system across all 89 parking lots in Chandigarh, was first conceived in August 2022. Two years later, it is still at the tender stage.

As per the proposal, the new parking system will include a mobile app for booking parking spaces, separate parking for two-wheelers, appropriately marked parking spaces, dynamic pricing and availability of parking spaces, which will be managed by a central control centre.

As per the tender, the rates will be uniform, regardless of the place of registration of the vehicle. As per the new rates, the first 20 minutes for pick-up and drop-off will be free. There has been no increase in the existing parking fees for two- and four-wheeled vehicles for the first four-hour period, which is ₹7 and ₹14, respectively.

However, hourly rates have been introduced to facilitate vehicle traffic and optimal use of parking space.

Parking in underground facilities is also encouraged by charging fees. ₹5 less than the surface parking rates in all zones. In addition, to encourage the use of digital payments, MC will charge ₹5 additional fees for cash payments.

Monthly passes will be introduced in ₹PLN 300 per month for underground parking and ₹400 for surface parking.

Interestingly, the AAP and the Congress are opposed to the proposal as the parties, ahead of the Lok Sabha elections this year, had approved free parking for both two-wheelers and four-wheelers, irrespective of the area of ​​registration/city of the vehicle. However, the proposal is pending with the local government for approval.

Meanwhile, since the contract with the previous companies ended in January last year, MC has been managing the car parks, charging fees at 79 car parks, while the rest have free parking. However, mismanagement and overcrowding continue to plague the car parks.