The Corporation will rework the revenue generation model for parking management in the city.
On Thursday, the Chennai Corporation Council cancelled the tender for parking management system, owing to inadequate revenue generation from the proposed system.
The system was expected to generate only Rs. 67.45 lakh per year for the Chennai Corporation. The parking management company which qualified in the bid accepted to collect Rs. 3.90 per hour, for a car, in each of the 2,000 parking slots.
The charges for towing a car parked illegally were to be Rs. 40. As 70 per cent of the parking space was expected to be utilised, the revenue generation would be poor.
The civic body will now implement a better revenue model for parking management with higher revenue collection, without exceeding the limit set for parking charges in the city. The parking charges per car, for an hour, will not exceed Rs. 5 under the new system.
People can register their vehicles with the system which will deduct parking charges from a linked bank account. Decisions on pricing of parking lots based on the space utilised by a vehicle will be taken shortly.
Work on clear demarcation of parking zones and no-parking zones on a road will begin only after the new parking management company is identified.
