Thursday, August 30, 2012

MCD: PARKING WOES

It’s surprising to note that MCD’s low-cost parking service is often creating problems for scores of commuters on the busy Delhi roads. B&E analyses why it is time to announce a hike in parking rates. by Pawan Chabra

“Parking is just like any other market, when demand exceeds supply, the price will rise until demand meets supply (equilibrium). If supply is fixed, it’s demand that determines the price,” says Ross J. Moore, Chief Economist, Colliers International. Unlike the municipal authority in Delhi, the parking rates are usually set by the private sector across the globe and the government-owned parking garages follow along. Considering the fact that the parking lots that are managed by the MCD are in a very shoddy state (compared to the parking lots managed by private players in malls), the MCD should seriously look at the option of hiking the parking charges in Delhi. This will not only control the ongoing illgeal parking activity in the city, but will also help in removing congestion from Delhi streets. Raison d’être: To stave off from paying a higher parking charges, people generally refrain from driving their cars in the city areas.

However, there are critics who feel that a rise in parking rates might invite lot of chaos. No doubt, it will in the initial stages, but if implemented in phases – wherein the government also focuses on the development of the public transport and subsequently announces a rise in the parking rates – the solution is really a viable one. In fact, high parking rates can even serve as a practical alternative to the proposed congestion tax that might create a hue and cry among general public. “But if people are used to either free parking or cheap parking, the transition to high parking costs will take years if not longer,” cautions Moore.

In fact, understanding the gravity of the situation MCD has already started working on its plans to implement flexible parking rates across Delhi in order to ensure that there is less congestion in the city streets and has even set a deadline for its execution – the next financial year. Though the project will start initially in the South Extension circuit and will be extended to other areas, the officials at MCD will have to ensure that its implementation is done with utmost care and it should not end up creating more parking mafias in the Capital.

There is an immediate need to implement congestion tax to ensure less congestion on the busy Delhi roads, but it will surely require a lot many years before the intent actually matches the projected image. Till then, people like Sahil will have to bear the cost and the unnecessary hassle as well.


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