116
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Changes
→Cost recovery for operation and maintenance
Tariff structures and costing need better incentives, strategies and support to enhance efficiency (benchmarking, water metering etc.). Poor need differential (social) tariffs. In rural Gujarat 25 water user committees have successfully started to set-up O&M funds.
<ref>[http://www.wsp.org/publications/sa_indiapoor.pdf]</ref>. However, most urban and rural schemes in India survive on large operating subsidies. <ref>[http://siteresources.worldbank.org/INTINDIA/Resources/Bridging_the_Gap_Exec_Sum.pdf]</ref>.
This could be the most suitable financial model for service delivery, which could even have a higher impact if also repairs and replacement were accounted and financed.
