CHAPTER 1: INTRODUCTION .1-13 1.1. Introduction 3 1.2. Infrastructure Constraints on Urban Productivity3 1.3. Urban water supply Scenario 3 1.4. Issues with Urban water tariffs3 1.5. Need for Water Pricing 4 1.6. Objectives of the Municipal Water Tariff Design ..5 1.7. Issues of Subsidy 7 1.8. The Context of the Research .8 1.9. Introduction to the Study Area .9 1.10. Aim .. 10 1.11. Objectives .. 10 1.12 Scope and Limitation ..10 1.13. Research Questions ..11 1.14. Methodology ..11 CHAPTER 2 : LITERATURE REVIEW 14-31 2.1. Issues in the developing countries 14 2.2. Characteristics of urban water supply systems in developing countries .14 2.3. Concepts in Water Supply ..15 2.4. Types of water Tariffs ..15 2.5. Issues and Options in Pricing Basic Infrastructure .16 2.6. Analysis of Pricing and Subsidy Issues .18 2.7. Myths related to water pricing ..19 2.8. Some Recent Experiences 21 2.8.1. Municipal Corporation Ludhiana21 2.8.2. The Experience of Ajmer, (Rajasthan)24. 2.8.3. Tirupur Water Supply ..27 2.9. Conclusion 30 CHAPTER 3 : WATER SUPPLY IN AHMEDABAD 32-4 3.1. Overview of Ahmedabad water supply32 3.1.1. Growing Water Needs32. 3.2. Water Sources in Ahmedabad 33 3.3. Water Supply and Transmission35 3.3.1. Distribution System37 3.3.2. Water demand and supply .39 3.3.3 Water Treatment System 40 3.3.4. Water storage .40 CHAPTER 4 : FINANCIAL ANALYSIS ..41-53 4.1. Financial Position and Performance of AMC Water Department .41 4.2. Financial Analysis 42 4.2.1 Revenue Profile of AMC water service 42 4.2.1 Revenue Profile of AMC water service 44 4.2.2. Expenditure Profile of AMC water department ..47 4.2.3. Comparison of Income and Expenditure Profile of Water Supply .50 4.2.4. Comparison of Total Water Supply Income and expenditure Vs Per capita .50 income and expenditure 4.2.5. Share of Water Supply Income & Expenditure to the Total Income & Expenditure 50 4.2.6. Cost Recovery of AMC Water Supply .52 4.3. Issues 52 CHAPTER 5 : Pricing Analysis 54-66 5.1. Pricing for Public Good 54 5.2. Metering and customer connections 55 5.2.1 Water Connections 55 5.2.2. Connection charges ..56 5.3. Summary of Present Water Supply Shortcomings 57 5.4. Tariff and Commercial aspects 57 5.5. The current Tariff structure does not satisfy the objectives 57 5.6. Weaknesses of the current tariff structure 62 5.6.1. Current charging system against the demand ..62 5.6.2. Protection of the vulnerable group of the society Water Supply in Ahmedabad.62 5.6.2. Protection of the vulnerable group of the society Water Supply in Ahmedabad..63 5.7. Other Sources of Revenue .64 5.7.1. Development Charges Reasons for low Collections .64 5.7.2. Metering and Charging .65 5.8. Recommendations 66 CHAPTER 6: PRIMARY SURVEY .67-72 6.1. Primary Survey .67 6.2. Socio economic profile .67 6.3. Service .68 6.4. Capacity of Storage ..69 6.5. Type of Charging .69 6.6. Willingness to Pay 69 6.7. Interdependence of factors 70 6.8. Privatization ..71 6.9. Conclusion 72 CHAPTER 7 : RECOMMENDATION & CONCLUSION 70-80