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- Title
Factors affecting operation and maintenance cost recovery of urban water supply: An evidence from an eastern Indian states.
- Authors
Mohanty, Tapasi; Rout, Himanshu Sekhar
- Abstract
Poor recovery of operation and maintenance (O&M) cost is a major hindrance to urban water supply sustainability. Water supply sustainability requires at least full O&M cost recovery from user charges. The objective of the study is to analyze the operational and service delivery factors for the Urban Local Bodies (ULBs) of Odisha, and determine factors affecting O&M cost recovery. This study has used a cross‐section of pooled data of 300 observations from 2014–17. Descriptive statistics and multiple regressions with bootstrapping have been used to analyze the factors affecting cost recovery. This study found that energy cost constitutes the highest share followed by establishment cost, repair, and replacement cost and chemical cost. Domestic connection being the maximum connection share (i.e., 97.6%) contributes only 54.1% of revenue. The remaining 45.9% of revenue comes from 2.4% of the connections. Industrial connection has the lowest connection rate (i.e., 0.1%) but contributes the highest (17.4%). The cost on energy, repair, and replacement is inversely related and found to be statistically significant factor for cost recovery; whereas number of domestic connections, presence of industrial connection in the ULBs and per capita rate of supply are the statistically significant factors having direct relation with cost recovery.
- Subjects
DEPRECIATION; MUNICIPAL water supply; MAINTENANCE costs; USER charges; STARTUP costs
- Publication
Journal of Public Affairs (14723891), 2022, Vol 22, Issue 2, p1
- ISSN
1472-3891
- Publication type
Article
- DOI
10.1002/pa.2459