He is contesting against Girish Chodankar of the Congress and Anand Shirodkar of Goa Suraksha Manch.
"Panaji will be a role model for other cities in the country with world class infrastructure. All issues pertaining to water supply, electricity, garbage and traffic management will be taken up under the smart city mission, within a year," Mr Parrikar said in the action plan being circulated as part of his election campaigning.
Mr Parrikar said he stands committed to the promises made by the party (BJP) in the 2017 Assembly election manifesto for the Panaji constituency.
The chief minister said that he would work towards decongesting Panaji city by relocating the government offices. The BJP nominee has assured the introduction an effective public transport system throughout the constituency with the addition of new link roads.
The entire constituency would be covered by a CCTV network with a centralised control centre, according to the action plan.
The by-election in Panaji and Valpoi constituencies would be held on August 23.
Mr Rane had quit the Congress and later joined the BJP. Though the Congress emerged as the single largest party after the Assembly polls, the BJP, with the support of the Goa Forward Party, the Maharashtrawadi Gomantak Party (MGP) and independents, managed to cobble up an alliance and formed the government under Mr Parrikar's leadership.
Mr Parrikar resigned as the defence minister after the BJP formed the government in Goa.
He was sworn-in as the chief minister on March 14 this year. He has to get elected to the Assembly within six months of taking charge as the Chief Minister.
Mr Parrikar initially had the choice to contest either from Curchorem or Panaji constituency but he chose the latter, which has been his bastion.
Mr Parrikar was earlier elected from the constituency from 1994 till 2014.