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Chandigarh MC managed to save ₹50cr in 2025, says MC chief
The commissioner was giving a detailed presentation in this regard to the Punjab governor and UT administrator Gulab Chand Kataria on Tuesday
The Chandigarh municipal corporation (MC), which was facing acute financial crunch in the previous financial year, has managed to improve its financial health this year by curtailing expenditure and increasing revenue through a number of steps, said MC commissioner Amit Kumar during the MC General House meeting on Tuesday.
The commissioner was giving a detailed presentation in this regard to the Punjab governor and UT administrator Gulab Chand Kataria on Tuesday. MC commissioner highlighted how the MC saved ₹50.05 crore through various cost-cutting and restructuring measures.
In his presentation, the commissioner highlighted that due to financial pressure during the previous financial year, the MC had to temporarily arrange ₹56 crore from pension funds to meet urgent expenses. This amount was reimbursed as per rules. “The MC managed to save ₹50.05 crore this financial year through different cost-cutting and restructuring measures,” he added.
This included rationalisation of manpower which saved ₹25 crore as around 450 posts have been reduced, leading to an annual saving of ₹25 crore. The civic body reviewed its Operation and Maintenance (O&M) works across departments. By closely monitoring expenses and restructuring operational activities, a saving of ₹10 crore per year has been achieved. The compressed bio-gas plant will now be managed and operated by IOCL, with funding support from the Government of India. This move will result in a major saving, as ₹80 crore required for installation will be avoided.
The MC commissioner highlighted that the dry waste processing is now being carried out through a new tendering system, leading to an annual saving of ₹3.30 crore. Similarly, the corporation discontinued outsourcing of sanitary waste management and started using its own animal incinerator plant after getting approvals from the Central Pollution Control Committee (CPCC). This change, effective from November 1, 2025, has resulted in savings of ₹3 crore annually.
The popular Chrysanthemum Show and Rose Festival have been made self-sustaining through sponsorships and CSR funding. This has led to zero financial burden on Chandigarh MC and a saving of ₹1.50 crore. The requirement of hired vehicles was reviewed, and the number of vehicles was reduced based on actual need. This rationalisation has resulted in savings of ₹1.25 crore per year.
After the expiry of the EESL agreement in March 2025, the corporation started maintaining street and garden lights departmentally. This shift resulted in a saving of ₹1 crore annually. Through these combined measures, the MC has achieved a total annual saving of ₹50.05 crore per year by curtailing expenditure, said the commissioner.
How MC strengthened revenue
At the same time, steps have been taken to strengthen revenue generation. One of the major decisions includes revising the property tax structure. The commercial property tax has been increased from 3% to 5%, while the residential property tax has been revised. These measures generated additional revenue of around ₹25 crore.
Increase in water and garbage charges alone generated an additional revenue of ₹16 crore to the MC. The civic body recorded an increase in property tax (residential) by ₹18 crore between 2024 and 2025. Similarly, property tax (commercial) also recorded an increased revenue of ₹16 crore this year as the total collection was ₹36.46 crore in 2024 and ₹53 crore in 2025.
To further improve income, properties that remained vacant even after three auctions will now be rented out at reduced collector rates. The MC is also focusing on Public-Private Partnership (PPP) projects to generate revenue without putting additional financial burden on the civic body. The MC invited tenders for maintenance of 36 roundabouts out of which tenders for five roundabouts has been allotted till date while tenders for another 15 roundabouts will be allotted in January, 2026. The bidding for the remaining 16 roundabouts is under process. This alone, is expected to generate a revenue of ₹2.5 crore per annum to the MC.
Similarly, tender for display of advertisement at unipoles is under process and is expected to generate a revenue of ₹20 crore per annum. The MC expects to generate a total annual revenue of ₹75 crore from these PPP projects.
Chandigarh MC aims to generate ₹50 crore annually by launching city-wide, multi-location, monthly parking passes – ₹500 for cars, ₹250– ₹260 for two-wheelers – starting mid-January 2026. This initiative seeks to simplify parking with unlimited entries/exits, replacing limited, single-lot passes to boost revenue.
