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Manjaree Dutta

UI4001

Optimal Cost Recovery in BNP's Water Sector

Cost Recovery for operations and maintenance (O&M) of service provision is important for efficient management of ULBs. Currently the cost recovery of Bhuj Nagar Palika (BNP) in O&M of water supply services is 48%, whereas according to SLB it should be 100%. Thus, it becomes important to intervene on improving cost recovery by Increasing Revenue Income (Improving Billing and Collection efficiency, Regularizing Unauthorized Connections and Improving water tariff setting) and Reducing Revenue Expenses by decreasing electricity costs as they hold a huge percentage in expenditure budget, and use of solar power generation system which can help reduce the energy expenses.


Report Content

Introduction

BNP's Revenues & Expenses at a Glance

Need Assessment done to arrive at this project

Proposal A: Increasing Revenue Income - Improving Collection Efficiency

Regularization of Unauthorized Connections

Improving Water Tariff Setting (Fixed Rate Charges)

Proposal B: Reducing Revenue Expenditure - Reducing Power Costs (Energy Audit)

Solar Power Generation System (Electricity generation)

Conclusion: Costing and Phasing

Case Studies for analysing Cost Recovery in 6 Indian Cities