Expect to wait until mid-2025 for smart parking rollout in Chandigarh
The Chandigarh municipal corporation (MC) has yet again extended the deadline for filing of bids for the project amid multiple queries from bidders
With over 25 private firms raising multiple queries in the Smart Parking project proposal, the Chandigarh municipal corporation (MC) has yet again extended the deadline for filing of bids.

Consequently, MC’s 89 parking lots are unlikely to be equipped with the long-awaited smart features until mid-2025.
On August 1, the civic body had floated a tender to invite private firms for design, development, implementation, operation and maintenance of Smart Parking project on PPP (public-private partnership) mode. Earlier, the firms could submit their bids by August 23, but the date was extended till September 23 and now again pushed further by a month.
“Around 25 private firms showed their interest in MC’s parking proposal. But they raised some queries, which need solutions. One of the major queries was concerning GST payment by the private firm to the government. The queries are being discussed and raised at the higher level, and only after all answers, we will finalise a firm for further process,” said an MC official, privy to the development.
After receiving the bids, MC will carry out the process of financial and technical evaluation. The selected agency will then take at least six months to convert MC’s 89 parking lots into smart parking lots.
Parking lots in the city are divided into two zones. Zone 1 comprises parking lots in the southern and eastern sectors, including Sectors 20, 26 and 34. Zone 2 includes northern areas, such as Sectors 7, 8, 9, 17, 22 and Sukhna Lake.
Project hanging fire for two years
The Smart Parking project, featuring a plan to introduce a FASTag-enabled parking management system at all 89 parking lots of Chandigarh, was first conceived in August 2022. Two years later, it remains stuck at tendering stage.
As per the 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.
Also, parking in underground facilities has been incentivised by charging ₹5 less than the surface parking rates in all slabs. Further, to encourage the use of digital payments, MC will charge ₹5 extra in case of cash payments.
Monthly passes will be introduced at ₹300 per month for underground parking and ₹400 for surface parking.
Notably, the AAP and Congress are against the proposal as the parties, before the Lok Sabha polls this year, had approved free parking for both two-wheelers and four-wheelers irrespective of the registration area/city of the vehicle. The proposal, however, is pending for approval with the local government.
Meanwhile, since the contract of the previous firms ended in January last year, MC has been managing the parking lots, imposing fees in 79 lots, while the rest have free parking. But mismanagement and overcrowding continue to plague the lots.

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