The Indian Express              10.09.2013

Paid parking lots: MC to reduce reserve price

The decision was taken at a meeting of the Finance and Contract Committee on Monday.

A total of five paid parking lots were to go under the hammer on August 13. As per directions of the Central Excise and Taxation Department, 12.36 per cent service tax was to be imposed on the contractors who bid for the parking lots. Following this, the contractors refused to bid. They demanded a decrease in the reserve price or increase in the parking fees.

As the issue was put before the committee, the members opposed any hike in the parking fees. It was then decided that the reserve price be reduced and the parking lots be re-auctioned. The parking lots that were to be auctioned were present in sectors 17 and 22.

In another decision, the members of F&CC decided not to convert the free parking lots in Sector 22 into paid parking lots as had been proposed. The proposal was to convert four parking lots in Sector 22 and one in Sector 17 into paid parking. This was opposed by the members who stated that there was a need for streamlining the existing paid parking lots instead of converting the free ones into paid ones.

It was decided that the parking lot behind Sagar Ratna restaurant in Sector 17 would be converted into paid parking lot. Earlier, a multilevel parking lot had been proposed at the site. However, the proposal hit several roadblocks. The agency that was awarded the contract went into arbitration and the MC was then directed to pay a heavy penalty to them. Meanwhile, the area that was being used as a free parking lot till now would be converted into a paid parking lot.

The Sahib Singh parking lot in Sector 17 that is to be made fully automated would have a reserve price of Rs 29.22 lakh. It was decided that the area of the Empire Store parking lot would be decreased and reserve price fixed at Rs 12.79 lakh. This would also be fully automated. In the remaining area, vehicles of MC officials would be parked. This is being done due to the construction at the MC building.

A contractor who had earlier given a notice for termination of the contract of a parking lot in Sector 22 has been allowed to withdraw the notice and continue for the remaining period of the contract.