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Chandigarh: City’s FASTag parking plan stuck in slow lane
Originally conceived in August 2022, the Smart Parking project aimed to introduce a FASTag-enabled parking system across all 89 paid parking lots in Chandigarh
Mandeep Kaur Narula does a deep dive why the project proposed in 2022 still hasn’t become a reality
1. What happened to the old private parking contractors
The Chandigarh municipal corporation (MC) took over the operations of the city’s parking lots on February 1, 2023, after the private contractors who had given charge of the parking lots were found to be involved in a multi-crore scam. There are 89 parking lots in the city which are further divided into two zones: 32 in Zone 1 and 57 in Zone 2. In 2020, the MC had auctioned both zones for three years for around ₹10 crore annually. The contract of both zones expired on January 30, 2023, after an alleged scam involving contractor Anil Kumar Sharma of Paschatya Entertainment Private Limited began unfolding. The firm has been accused of not paying dues to the tune of ₹6.5 crore and submitting a fake bank guarantee of ₹1.5 crore to the MC. Also, the contractor had allegedly been diverting the money collected to different accounts in his name and of other firms. Chandigarh police have so far arrested seven people in the case.
2. What was the original vision behind Chandigarh’s Smart Parking project
Originally conceived in August 2022, the Smart Parking project aimed to introduce a FASTag-enabled parking system across all 89 paid parking lots in Chandigarh. The plan, a brainchild of former MC commissioner Anindita Mitra, also included automatic number plate recognition (ANPR) cameras to prevent vehicle theft and revenue loss, a mobile app to provide information about available parking space, along with a facility to pre-book a parking spot.
At present, attendants issue parking slips and collect payments manually at all parking lots. Under the new system, boom barriers would open automatically when a vehicle approaches the entry point. At the time of exit, a fee based on parking duration will be deducted through FASTag.
3. Why has the project been delayed for so long
Planned in 2022, the project was first tabled in the MC House in July 2023, when a marginal fee hike for tricity-based cars double the fee for cars registered outside the tricity was proposed. The project was approved by the BJP-led House in the absence of AAP-Congress councillors, who were pushing for ‘free parking’ in the city.
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. The MC was then trying to allot the project to a new private firm but faced challenges in finalising the Memorandum of Understanding (MoU) due to GST collection issues, and stamp duties.
“The set rates, when combined with GST, result in impractical amounts involving paise, making payments inconvenient for residents. Additionally, the policy requires modifications, including private firm agreements,” said MC commissioner Amit Kumar had said in the House meeting on March 25 this year, where city councillors, instead of amending the existing flawed tender, decided to reject the project entirely, calling for a fresh blueprint with revised rates and conditions.
4. How is MC managing parking now
Since February 2023, MC is managing the lots, but with a manpower shortage. The civic body is operating only 73 out of the 89 parking lots while the remaining are presently running free-of-cost for the people. MC officials said the civic body has no professional expertise in the management of parking lots and that the working of its building and roads (B&R) department is being hampered because of its staff deployed to manage the parking lots. Poor management, inadequate staffing, and lack of accountability have resulted in mounting complaints from residents and market associations. Across markets—especially in high-footfall areas like Sector 22, 17, 19, 41, 8, and others—users face daily chaos, with no proper guidance, misbehaving attendants, and unregulated long-term parking. Due to haphazard parking, only about 50% of it is effectively utilised.
5. How much revenue MC earns from parking
In the initial months after the takeover, MC’s revenue dipped drastically. With annual contracts, MC was earning ₹90 to ₹95 lakh every month, but revenue had dipped to half. But now, after systematic improvements, staff training, and upgraded online payment technique, MC claims to earn around ₹1 crore from parking every month. For the fresh project, MC had in April this year approved steeper rates for parking, after rounding off the figures from the previous project proposal. As per the new parking rates’ proposal, the first 15 minutes shall be free-of-cost for pick-up and drop.
Slab rates have been introduced to facilitate the circulation of vehicles and optimum utilisation of parking spaces. Under the new slab rates, four-wheelers will be charged ₹20 for up to four hours of parking — a sharp increase from the existing ₹14 — while two-wheelers will pay ₹10 instead of ₹7. A special rate of ₹85 for the first four hours has been proposed for a lot near Elante Mall, making parking there one of the most expensive in the city. Currently, the civic body charges ₹7 for two-wheelers and ₹14 for four-wheelers irrespective of the time.
However, with the delayed smart parking project, MC is losing ₹8 to 10 crore every year (estimated from new approved rates which will be implemented after conversion of lots into smart lots).
6. What changes are being proposed in the new parking blueprint
After scrapping the previous project, MC is now proposing a new project in the upcoming House meeting on June 30. As per the project proposal, the revamped project will have an AI-enabled parking management and monitoring, automatic number plate recognition (ANPR), real-time space availability tracking, dynamic pricing and demand-based slot allocation, pre-booking options for convenience, live status updates via mobile app and digital displays, integrated digital payment solutions, centralised command and control centre, “pink periphery zones” for women’s safety, dedicated spaces for persons with disabilities, EV charging stations at multiple sites, valet parking services at select locations, energy-efficient lighting and infrastructure, and emergency features including SOS alerts and dedicated lanes.
