Public Bike Sharing scheme in poor shape after transfer to Municipal Corporation
The Public Bike Sharing (PBS) scheme in Chandigarh, launched in 2020 under the Smart City Mission on a public–private partnership (PPP) basis, is suffering from widespread vandalism, theft, poor upkeep and dwindling ridership, municipal records and on-site inspections show. After Chandigarh Smart City Limited (CSCL) closed in March 2025, operation and oversight of the project were handed to the Municipal Corporation (MC), which has since repeatedly penalised the operator for contract breaches.
The company running the service, Smart Bike Tech Private Limited, was allotted the project in 2020 under an initial 10-year contract. Under the agreement the operator pays a licence fee of about ₹1 lakh per month to the Municipal Corporation and may generate revenue from advertising panels installed at docking stations. Users open locks by scanning QR codes through a mobile application; rides are charged at ₹10 per hour, and riders must maintain a balance in a digital wallet to use the service.
Penalties for poor performance
The Municipal Corporation has invoked contractual penalties repeatedly for failing to maintain the agreed number of operational bicycles and docking points. A notice issued on 13 July imposed a penalty of ₹15.86 lakh on the operator for non‑maintenance of the required number of smart bicycles, citing service‑level reports.
“Service level data received from the agency for June 2026, accordingly penalty is calculated for bicycle availability.”
According to municipal figures cited in notices, similar penalties imposed over the past two years amount to roughly ₹2.75 crore in total.
On-the-ground condition: broken cycles and neglected docking stations
Field visits to several docking locations revealed numerous operational shortcomings. Inspectors and users found bicycles missing from docks, cycles with broken seats and damaged components, and docking stations in poor repair. Several sites showed uneven flooring and overgrown grass near docking bays — conditions that reduce visibility and can discourage casual or safety‑conscious riders.
Municipal officials have also recorded incidents of vandalism at docking stations and thefts of cycles and equipment, further reducing the active fleet. These losses and damage, the MC says in notices, have led to sustained shortfalls in the number of usable bicycles on the ground relative to contractual expectations.
How the system works and where it is failing
- Access: Users unlock bicycles by scanning a QR code at docking stations via a mobile app and must keep a prepaid balance in a digital wallet.
- Tariff: Ride charge is ₹10 per hour.
- Revenue streams for operator: Monthly licence fee to MC (≈ ₹1 lakh) and advertising panels on docking stations.
- Contract compliance: The MC has used service‑level reports to calculate penalties for bicycle availability shortfalls.
These operational details explain why the scheme’s viability depends as much on upkeep, anti‑theft measures and patrolling of docking stations as on user demand. With repeated shortfalls, the active fleet shrinks, reducing the attractiveness of the scheme and contributing to low ridership — a cycle that compounds maintenance problems.
Municipal action and public impact
Since the transfer of administration following CSCL’s closure, the MC has begun enforcing contractual remedies available to it, including monetary penalties. Notices show the MC is relying on service level data reported by the agency to calculate fines linked to bicycle availability.
For residents who used the scheme as a last‑mile option, the deteriorating condition reduces mobility choices and increases dependence on motorised transport. The lack of reliably maintained bicycles at docking stations also raises safety concerns for casual users and commuters who may rely on the system for short intra‑city trips.
Where things stand and what to watch for
| Item | Detail |
|---|---|
| Operator | Smart Bike Tech Private Limited |
| Contract start | 2020 (10‑year agreement) |
| Licence fee to MC | ≈ ₹1 lakh per month |
| Ride charge | ₹10 per hour |
| Recent penalty | ₹15.86 lakh (notice dated 13 July) |
| Total penalties (past two years) | About ₹2.75 crore |
Residents and commuters will be watching for further action from the Municipal Corporation: whether the MC increases enforcement, requires a remediation plan, seeks replacement of the operator, or tightens security and maintenance protocols at docking points. Any such steps will directly affect availability of bicycles and the scheme’s future viability.
The PBS launched with the aim of providing a green, affordable transport option for short trips across the city. With sustained maintenance lapses and continuing theft and vandalism, achieving that goal will depend on prompt, measurable improvements in fleet availability, station upkeep and security — measures that the contract and notices indicate are already under scrutiny by the Municipal Corporation.
