The BMC will soon earn at least Rs 46 crore from parking lots in Mumbai every year, courtesy of the implementation of the pay and park policy
BMC will earn five times more than its current earning of approximately Rs 9 crore. Representational Image
The BMC will soon earn at least Rs 46 crore from parking lots in the city every year, courtesy of the implementation of the pay and park policy. The collection will be five times more than its current earnings, which is approximately Rs 9 crore per annum.
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Also read: Non-Mumbai vehicles may soon have to pay more to park in city
The new parking policy was introduced in 2015, however, the state government stayed it after citizens from the A ward (Colaba, Fort, Churchgate) opposed it, citing proposed hike in charges - more than 300 per cent hike in existing rates. However, the state lifted its stay in March this year.
New policy, more revenue
The civic body began implementing the new policy at 18 locations from the first week of April. After a delay of two years, BMC is also in the process of appointing contractors to run its 91 on-street and 47 off-street parking lots.
Under the new policy, parking rates have been increased four times. Four-wheelers will now have to pay Rs 60 for the first hour, while two-wheelers will have to pay Rs 15 for the first hour. Sanjay Darade, chief engineer of the roads and traffic department said, "If implemented properly across the city, the new parking policy will surely give a lot of revenue to the civic body. It could be used in creating infrastructure for the city."
Officials from the road department have calculated the minimum license fee on the basis of the demand and requirement of parking spaces across the city.
"This system will increase the civic body's revenue a lot more if contractors bid higher for the sites," said an official from the road department.
SoBo sites
The official added, "Parking sites in Fort, Churchgate, CST and Colaba will earn more since they have tourist areas and offices. The 91 on-street parking sites will earn BMC around Rs 36 crore every year and contractors will be appointed for 2 years." As for the 47 off-street parking lots, BMC has set Rs 10 crore per year as the minimum license fee.
Amount may increase
Another official said, "The amount will increase once residential parking will be implemented. This could also prove helpful for BMC's financial status as octroi, its biggest source of income, is set to be phased out by the Goods and Services Tax. BMC earns about Rs 7,000 crore per year from octroi." The BMC is also coordinating with the traffic police to identify new areas for more parking lots.
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