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Vehicles parked in a haphazard manner on the roadside in Bhubaneswar
Bhubaneswar: A sharp increase in the number of private vehicles coupled with acute space constraints in urban areas has prompted the Odisha govt to notify a comprehensive Draft Parking Policy for Urban Areas 2026 aimed at reducing congestion, regulating on-street parking and improving pedestrian safety across cities and towns.The decision comes amid an unprecedented rise in the number of vehicles in the state. According to govt data, vehicle registration has increased over 65% in six years, from 91.3 lakh in 2017–18 to more than 1.5 crore in 2023–24. According to authorities, the lack of a uniform parking management framework has led to unauthorised parking on kerbsides, reduced footpath space and inefficient use of public space, aggravating daily traffic woes.In order to address these issues, the housing and urban development department on April 14 notified the policy, introducing for the first time demand-based pricing, proof-of-parking norms and strict enforcement in urban areas, including Bhubaneswar and Cuttack. The department has made the draft policy available on its website and asked stakeholders to submit suggestions and objections till the end of this month.
Under the new framework, parking will no longer be treated as a free public entitlement but as a tool to manage demand. Urban local bodies will introduce dynamic, location-based parking fees, with higher tariffs in busy commercial zones and lower charges in residential areas.As per the draft policy, off-street parking (parking on pavements) will cost at least 25% less than the on-street parking to stop vehicles from assembling at the kerbside and improve turnover.As part of the policy, cities will be allowed to mandate proof of available parking space for the registration of new private vehicles in high-density zones. Residential on-street parking will also be prohibited on roads narrower than 12 metres, while overnight parking will be permitted only through a regulated permit system.The policy places strong emphasis on pedestrian rights, clearly stating that encroachment of footpaths by parked vehicles violates the citizens’ right to safe walkways.
“On-street parking that hampers walking, cycling or emergency access will attract strict penalties, towing and repeat-offender action,” the draft policy reads.To ensure smarter management, cities will roll out technology-driven parking systems, including real-time slot availability, cashless payments, digital permits and geo-tagged enforcement. Parking area management plans have been made mandatory for guiding area-wise pricing, enforcement and integration with public transport.Shared and mixed-use parking is another unique regulation introduced in the draft policy. “Underutilised parking spaces in residential complexes, office buildings and institutions can be opened up for public use through formal agreements or digital platforms, reducing the need for new parking construction,” it reads.Crucially, all parking revenue will be ring-fenced exclusively for sustainable mobility, including footpaths, cycle tracks, EV charging infrastructure and public transport improvements.
The policy also mandates EV charging points in new parking facilities and offers incentives for electric vehicles, bicycles and verified carpool users.Officials said the policy aligns with national urban transport and transit-oriented development principles and aims to reclaim street space for people rather than parked vehicles, gradually guiding cities towards safer, more walkable and public transport-oriented urban mobility.

