CONTENTS Executive Summary Executive Summary 7 Chapter 1: Introduction 11 Preface 11 Need For the Study 12 Research Questions 14 Aim 14 Objectives 14 Scope & Limitation 14 Methodology 15 Chapter 2: Literature Review . 17 What is cost recovery for water supply sector? 17 Types of cost recovery 17 National Policy Framework 18 What is the cost of water supply in urban area? 18 How the operational factors are most effective parameters on cost-recovery? 20 Ways to improve cost-recovery: 20 Energy Audit initiatives in Gujarat . 27 Benefits of make water supply sector cost-efficient 27 The need for efficient tax collection 28 Tax Collection Process in Gujarat . 29 Different aspects of real cost recovery 29 Panini Vaidya PP0010514 cash-based v/s accrual-based accounting system . 29 Chapter 3: Different region of Gujarat and their respective current cost recovery . 31 Profile of Gujarat State 31 Region 1: Central Gujarat 31 Region 2: East Gujarat . 32 Region 3: Kutch . 33 Region 4: North Gujarat 34 Region 5: Saurastra . 35 Region 6: South Gujarat 35 Gujarat water supply history. . 36 Current water supply scenario in state. . 38 Cost Recovery of different region of Gujarat 41 Main source of water supply in different region. 43 Impact of source of water supply and expenditures on cost recovery . 44 Production cost and cost recovery. . 46 Water supply coverage and level of service provision. . 48 Chapter 4: different operational factors affecting the cost recovery of water supply sector in regions of Gujarat. 51 Aspects of operational factors. . 51 Illegal Connection . 51 Service Coverage . 52 Free Supply (non-revenue water) . 52 collection efficiency . 54 Chapter 5: Priority of operational factors to lower down unnecessary expenses happening in current system. . 56 Priority list of operational factors to lower down unnecessary expenses happening in current system . 64 CONCLUSION: The factors that influence cost recovery . 66 References . 67