Bhubaneswar: To combat mounting traffic congestion and shrinking urban spaces, the Odisha government has notified the “Draft Odisha Urban Parking Policy, 2026.”
The policy seeks to create more liveable, inclusive, and people-friendly cities by ensuring equitable access to street space for all road users through efficient, demand-based, and technology-driven parking management. The policy also proposes that buyers may need to provide proof of parking space before registering new vehicles.
The notification, published in the Odisha Gazette on April 13, invites suggestions or objections from the public regarding inclusions or omissions in the draft. Stakeholders have 15 days from the date of publication to submit feedback in person, by post, or via email to hudsec.or@od.gov.in.
The state has witnessed rapid urbanisation and a sharp rise in vehicle ownership, with registered motor vehicles jumping from about 91.3 lakh in 2017-18 to over 1.5 crore by 2023-24, a growth of more than 65% in six years. This surge has led to unregulated on-street parking, inefficient use of public spaces, and widespread congestion in cities like Bhubaneswar, Cuttack, Berhampur, Rourkela, and emerging urban centres.
The draft policy, prepared by the Housing and Urban Development (H&UD) Department following consultative workshops, aims to rationalise parking, curb haphazard on-street parking, promote shared and off-street facilities, and align parking management with broader goals of sustainable mobility, climate resilience, and multimodal transport.
Major Proposals in the Draft Policy
A cornerstone of the first-of-its-kind policy is the introduction of demand-based and dynamic parking charges, where fees will vary according to location, time of day, congestion levels, and land value. High-demand commercial and busy zones will see higher rates and peak-hour surcharges, while less congested areas will have lower fees. To encourage the use of dedicated facilities, off-street parking is proposed to be at least 25% cheaper than on-street options. On-street parking will be restricted near off-street lots, with free or subsidised parking limited to exceptional cases approved by ULBs.
The policy also aims to make on-street parking scarcer in sensitive areas, drawing from broader Indian experiences in cities like Pune, Surat, and Chennai, where similar demand-management approaches have helped improve turnover and reduce long-duration occupation of public roads.
Strict enforcement, including penalties, towing, and dig
ital blacklisting for repeat offenders, will be introduced.
Sector-Specific Guidelines: Hospitals must provide dedicated spaces for ambulances, staff, and visitors with free drop-offs. Educational institutions and offices will offer short-duration parking during peaks and potentially repurpose spaces for other uses off-peak. Industrial areas will have designated spots for goods vehicles, with restrictions on overnight municipal parking. Residential areas in high-density zones may require proof of parking for new vehicle registrations and ban on-street parking on narrow roads (less than 9 metres wide).