Chandigarh: Wait for Smart Parking stretches till 2026 as MC extends deadline again

The much-awaited Smart Parking project in Chandigarh is not likely to become a reality until 2026 as the Chandigarh Municipal Corporation (MC) has extended the deadline once again—this time till June 2025.

After receiving the bids, MC will carry out the process of financial and technical evaluation. Following the allotment of tender, officials estimate it will take at least six months for the selected agency to convert existing lots into Smart Parking facilities. This means residents can expect to see an improved parking system only by next year.

First conceptualised in August 2022, the project aims to introduce a FASTag-enabled parking management system at all 89 parking lots across the city, allowing swift entry and exit.

However, even after more than two years, the initiative remains stuck at the tendering stage, leaving residents frustrated over the lack of progress.

Tender extended thrice already

The civic body had first floated a tender on August 1, 2024, to invite private firms for design, development, implementation, operation and maintenance of the Smart Parking project on PPP (public-private partnership) mode.

The firms could submit their bids by August 23, but the deadline was extended to November 2024. It was pushed further again till December 2024 and for the third time to March 2025. Now, after a meeting on Monday, MC officials once again decided to extend the tender deadline by another three months.

Bidders’ queries need to be addressed: MC

“Around 25 private firms showed their interest in MC’s parking proposal. But they raised some queries, which need solutions. The queries are primarily regarding GST payment and stamp duty payment to be paid by the hired agency to the government. But clarification is awaited from the Union finance ministry, forcing us to extend the deadline again,” said MC officials.

For the fund-strapped MC, the delay will result in revenue loss. In FY 2024-25, MC could generate only ₹14 crore from parking fees while they have projected ₹25 crore for the coming fiscal.

As per the project proposal, the new parking system will include a mobile app for booking parking slots, separate parking for two-wheelers, proper demarcated parking slots, dynamic pricing and parking availability status, to be managed by the central control centre.

According to the tender, uniform rates will be applicable, irrespective of the vehicle’s registration place. As per the new rates, the first 20 minutes will be free for pick and drop. No increase has been made in the existing parking charges for two- and four-wheelers for the first slab of four hours, which are ₹7 and ₹14, respectively.

But thereon, hourly rates have been introduced to facilitate circulation of vehicles and optimum utilisation of parking space.

Meanwhile, since the contract of the previous firms ended in January 2023, MC has been managing the parking lots, with complaints of poor management and overcrowding very common.