Hidden subsidy

By Priyanka Chandola
Published: Friday 15 August 2008

Delhi municipality proposes low annual parking fee

at a time when stiff parking fees are fast becoming an effective deterrent against car purchasing the world over, the Municipal Corporation of Delhi is contemplating reduced parking charges. The municipality has a proposal for a yearly levy which will tantamount to vehicle owners paying far less than what they currently pay for parking.

While two-wheelers will have to pay Rs 500 per year, owners of small, medium and big cars and sports utility vehicles will have to shell out Rs 1,000, Rs 1,500, Rs 2,000 and Rs 2,000-2,500 per year respectively.

Calculation of the proposed annual charges shows that owners of personal vehicles will have to pay far less than the current parking fees charged by the municipal corporation. A two-wheeler at present has to pay Rs 7 for up to 10 hours of parking and Rs 15 beyond 10 hours up to 24 hours. A car has to pay Rs 10 for up to 10 hours and Rs 20 beyond 10 hours up to 24 hours. If the proposed tariff comes into effect the per day parking charge will reduce to around Rs 1.4 for two-wheelers and Rs 2.7-6.8 for cars.

"This is a proposal mooted by Delhi's mayor. It has not come to us nor has it gone to the Standing Committee," said a senior official of the municipality.

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