Parking paradox: BMC revenue higher when parking was ‘free’

Bhopal: In what would appear to be a bizarre scenario to face, Bhopal’s civic body has reported a 38% revenue decline in parking revenue in the last fiscal, when 2023’s free parking policy was reversed in the city.
The situation prompts scrutiny, particularly on whether free parking throughout the Bhopal was more advantageous for the BMC and city inhabitants? And how did such a situation arise?
BMC corporator and MIC member (revenue) wing, Jadgish Yadav, when asked about this, blamed the situation on tender execution. BMC has placed parking tenders for months, without any finalization. “We will split the tenders and executive within 15-days,” he added. BMC has invested over Rs 150 crore in multilevel parking across the city in last eight years, without increase in revenue.
Actual Revenue Fails To Catch-Up With Projected

At a time when BMC has increase taxes on city residents, its aim to increase parking revenue has not been set high. The projected annual revenue from car parking for 2025-2026 is Rs 3 crore, based on parking utilisation in Bhopal, the state capital. With an estimated 11 lakh vehicles in the city, the average revenue generated from each vehicle annually calculates to Rs 27.27 per vehicle.
11 Per Vehicle When Motorists Pay Much Higher
Another noteworthy observation is that in the previous fiscal, BMC’s earnings amounted to merely Rs 11 per vehicle. One would scarcely encounter a motorist in the state capital who disbursed less than that sum. A typical excursion to New Market or another commercial precinct necessitates substantially higher expenditure for premium parking.
BMC revenue has diminished by 38%, culminating in a Rs 69 lakh reduction compared to the previous fiscal, according to the budget document presented in BMC council by mayor Malti Rai.
‘Low Usage Of Parking Spaces & Lack Of Strategy’
Earlier in May 2023, BMC proclaimed all parking in the state capital to be free, barring multilevel parking and designated premium parking spaces. Around Feb 2024, the directive was reversed. Nevertheless, peculiarly, when parking was complimentary, the revenue generated by the Bhopal Municipal Corporation (BMC) was superior.
The reduced revenue forecasts stem from multiple causes, such as low usage of parking spaces by motorists, openness and the BMC’s readiness to implement a comprehensive parking strategy, according to experts.