Publication: Cost Recovery in Urban Water Services : Select Experiences in Indian Cities
Date
2011-03
ISSN
Published
2011-03
Author(s)
Gupta, Anjali Sen
Abstract
The report draws on a Water and
Sanitation Program (WSP) study from 2008 which made a
comparative analysis of 23 Urban Local Bodies (ULBs)-looking
at seven cities in detail and another 16 based on secondary
data-to understand the factors affecting cost recovery in
India and provide an indication of current performance. It
also draws out examples and lessons to inform reform
approaches and guidelines for reform. The first part of the
paper discusses operational and tariff-related factors that
impede cost recovery by urban water service providers in
India, especially low service coverage; high water losses
and nonrevenue water; inefficient metering, billing and
collection; and high staffing levels. It also shows that
distorted tariff structures and subsidies undermine cost
recovery further, and often benefit middle and upper income
levels, rather than the poor. The second part of the note
discusses policy reform and practical initiatives and
options to achieve improved cost recovery and, by
implication, achieve service improvements, capital
maintenance, and expansion of coverage.
Citation
“Gupta, Anjali Sen. 2011. Cost Recovery in Urban Water Services : Select Experiences in Indian Cities. Water and sanitation program technical paper. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/17308 License: CC BY 3.0 IGO.”