CONTENTS CERTIFICATE UNDERTAKING ACKNOWLEDGEMENT LIST OF FIGURES LIST OF TABLES LIST OF MAPS LIST OF ABBREVIATIONS EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION 1.1 BACKGROUND 1.2 ISSUES WITH URBAN WATER TARIFFS 1.3 NEED FOR WATER PRICING 1.4 COST RECOVERY 1.4.1 ECONOMIC EFFICIENCY 1.4.2 EQUITY 1.4.3 AFFORDABILITY 1.5 ISSUES OF SUBSIDY 1.6 THE CONTEXT OF THE RESEARCH 1.7 SELECTION OF THE STUDY AREA 1.8 AIM 1.9 OBJECTIVES 1.10 RESEARCH QUESTIONS 1.11 SCOPE AND LIMITATIONS OF THE STUDY 1.11.1 SCOPE 1.11.2 LIMITATIONS 1.12 METHODOLOGY CHAPTER 2 COST RECOVERY PRINCIPLES FOR WATER SUPPLY 2.1 PRICING POLICIES IN ASIAN DEVELOPMENT 2.2 CHARACTERISTICS OF URBAN WATER SUPPL 2.3 CONCEPTS IN WATER SUPPLY 2.4 WATER PRICING INSTRUMENTS 2.4.1 CONNECTION FEE OR FIXED ACCESS 2.4.2 WATER TAX 2.4.3 WATER CHARGE 2.5 TYPES OF WATER TARIFF 2.5.1 CLASSIFICATION BY USER OR USAGE 2.5.2 CLASSIFICATION OF TARIFFS BY RATE CATEGOR 2.5.3 FLAT RATES 2.5.4 METERED RATES 2.5.5 STAND POSTS 2.5.6 INCREASING BLOCK TARIFF (IBT) 2.5.7 UNIFORM VOLUMETRIC CHARGE 2.5.8 LINEAR WATER CHARGE 2.5.9 TWO PART TARIFF 2.5.10 TARIFF FOR UNMETERED SUPPLIES 2.5.11 MINIMUM BASIC TARIFF 2.6 TARIFF CALCULATION 2.6.1 CAPITAL COSTS 2.6.2 DEPRECIATION 2.6.3 INTEREST ON CAPITAL 2.6.4 OPERATION AND MAINTENANCE 2.6.5 AVERAGE INCREMENTAL COST AND MAINTENANCE 2.7 UNACCOUNTED FOR WATER (UFW) 2.8 ISSUES AND OPTIONS IN PRICING BASIC 2.8.1 OPERATIONAL COST 2.8.2 OPPORTUNITY COST 2.8.3 DISCHARGE COSTS 2.8.4 CONSTANT VOLUMETRIC CHARGE 2.8.5 INCREASING BLOCK TARIFF (IBT) 2.9 ANALYSIS OF PRICING AND SUBSIDY ISSU 2.10 COPING COSTS 2.11 MYTHS RELATED TO WATER PRICIN 2.12 CASES FROM INDIA 2.13 CASE STUDIES FROM OTHER COUNTRIES 2.13.1 SYDNEY, AUSTRALIA 2.13.2 ALGERIA 2.13.3 CHINA 2.13.4 CANADA 2.14 SUMMING UP CHAPTER 3: PROFILE OF THE STUDY AREA 3.1 PROFILE OF THE STATE 3.2 LUCKNOW CITY PROFILE 3.3 DEMOGRAPHIC AND SOCIAL PROFILE 3.3.1 GROWTH COMPONENTS 3.3.2 GENDER RATIO 3.3.3 LITERACY 4.14 EXPENDITURE ON ELECTRICITY 4.14.1 ANNUAL EXPENDITURE ON ELECTRICITY 4.14.2 ANNUAL EXPENDITURE ON ELECTRICITY 4.14.3 ANNUAL EXPENDITURE ON ELECTRICITY CHAPTER 5 ANALYSIS AND FINDINGS 5.1 STATUS OF WATER SUPPLY: COMPARISON 5.1.1 QUANTITY OF WATER SUPPLIED BY 5.1.2 WATER SUPPLIED, ESTIMATED 5.1.3 UNACCOUNTED FOR WATER AND 5.1.4 WATER SUPPLY CONNECTIONS 5.1.5 SOURCE OF WATER 5.1.6 LENGTH OF DISTRIBUTION NETWORK AND 5.1.7 WATER TREATMENT 5.1.8 INSTITUTIONAL ARRANGEMENTS FOR 5.1.9 STAFF POSITION 5.1.10 REVENUE RECEIPTS FROM WATER 5.1.11 REVENUE EXPENDITURE ON W 5.1.12 COST RECOVERY AND REVENUE 5.2 BUDGET ANALYSIS 5.2.1 INCOME STATEMENT (PREVIOUS 5.2.2 EXPENDITURE STATEMENT (PREVIOUS 5.2.3 PERCENTAGE SHARE OF ELECTRICITY IN 5.2.4 REVENUE SURPLUS/ DEFICIT STATEMENT 5.3 COMPARISON OF EXISTING TARIFFS 5.3.1 LUCKNOW WATER TARIFF 5.3.2 BANGALORE WATER TARIFF 5.3.3 CHENNAI 5.3.4 HYDERABAD 5.3.5 DELHI 5.4 BLOCK TARIFF COMPARISON FOR 5.5 PRODUCTION COST OF WATER CHAPTER 6 CONCLUSIONS AND RECOMMENDATIONS 6.1 GOALS FOR LJS 6.2 MEASURES REQUIRED REACHING THE GOALS 6.2.1 REGULAR & EFFICIENT WATER 6.2.2 WAYS TO ACHIEVE REGULAR & 6.2.3 INCREASING PLAN ALLOCATION 6.2.4 BETTER PROJECT FORMULATION AND ALLOCATIONS 6.2.5 INSTITUTIONAL FINANCE HUDCO, 6.2.6 DEREGULATION - BOT BOO FOR NEW AREAS 6.2.7 RATIONAL TARIFF 6.2.8 CUTTING DOWN WASTAGES/ REDUCING NON REVENUE 6.2.9 IDENTIFYING DEFAULTERS, UNAUTHORIZED 6.2.10 REDUCE EXPENDITURE 6.2.11 MANAGEMENT CONTRACT TO 6.2.12 BETTER COLLECTION MECHANISMS 6.2.13 EFFICIENT FEEDBACK SYSTEM 6.2.14 EDUCATING CLIENTS ON MULTIPLE USES OF WATE 6.3 WATER SUPPLY PERFORMANCE INDICATORS 6.3.1 SERVICE LEVEL INDICATORS 6.3.2 FINANCIAL INDICATORS 6.4 INTEGRATED MANAGEMENT PROGRAM 6.5 IMPLEMENTATION ARRANGEMENTS 6.6 RECOMMENDATIONS (SUMMING UP) 6.7 CONCLUSIONS REFERENCES