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The right of urban local bodies to provide for water supply services unfolds the responsibility of the users to pay for it. However urban local bodies do not achieve full cost recovery in water supply services. National policies and missions focus on to recover atleast O&M expenditures of ULBs. The cost recovery of VMC over past 5 years has remained 75%. Thus, under the two components of revenue income and expenditure, the project highlights and focuses on how Vadodara Municipal Corporation can achieve 100% cost recovery by decreasing its O&M expenditure or increasing revenue.