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Measuring the performance of water service providers in urban India : implications for managing water utilities

This study assesses the efficiency of the urban water supply system in 27 selected Indian cities. It applies data envelopment analysis (DEA) as an analytical tool to measure technical efficiency. Cities are categorized into different groups according to the management structure of their water utilities. The results show that within groups, the utilities that are managed by ‘municipal corporations (MCs) and parastatals', with a certain amount of functional autonomy, perform better in comparison to the group ‘MCs and government’ and thus, strengthen the hypothesis that functional autonomy in management leads to better performance of the water utilities. Moreover, the results also have implications for urban domestic water pricing. We find that most water utilities are operating under decreasing returns to scale (DRS), implying that water should be priced at a marginal cost of supply. [authors abstract]

TitleMeasuring the performance of water service providers in urban India : implications for managing water utilities
Publication TypeJournal Article
Year of Publication2012
AuthorsGupta, S., Kumar, S., Sarangi, G.K.
Paginationp. 391 - 408; 4 tab.; 8 fig.
Date Published2012-06-01
PublisherIWA Publishing
Place PublishedLondon, UK
Keywordsindia, service connections, service delivery, urban areas, urban communities, water supply
Abstract

This study assesses the efficiency of the urban water supply system in 27 selected Indian cities. It applies data envelopment analysis (DEA) as an analytical tool to measure technical efficiency. Cities are categorized into different groups according to the management structure of their water utilities. The results show that within groups, the utilities that are managed by ‘municipal corporations (MCs) and parastatals', with a certain amount of functional autonomy, perform better in comparison to the group ‘MCs and government’ and thus, strengthen the hypothesis that functional autonomy in management leads to better performance of the water utilities. Moreover, the results also have implications for urban domestic water pricing. We find that most water utilities are operating under decreasing returns to scale (DRS), implying that water should be priced at a marginal cost of supply. [authors abstract]

NotesWith bibliography on p. 407 - 408
Custom 1822

Disclaimer

The copyright of the documents on this site remains with the original publishers. The documents may therefore not be redistributed commercially without the permission of the original publishers.