The urban water supply and sanitation sector in India is chronically inefficient, with limited coverage and poor service quality. Poor service delivery could largely be attributed to inefficient and financially weak service providers that continue to operate without sufficient autonomy, incentives, and accountability to consumers. A significant and sustained improvement in the performance of urban water utilities is critical to improving services. There is consensus that the underlying problems relate to performance of the utility, such as low and inadequate investments, poor operations and maintenance (O&M) practices, high non-revenue water, uneconomic tariff structure/levels, and inefficient financial management.
CRISIL Infrastructure Advisory is assisting several utilities in improving service levels and financial sustainability through benchmarking, identifying and implementing internal reforms, and capacity building and by seeking private sector expertise and capital through the development of public private partnership projects. CRISIL Infrastructure Advisory also assists several state governments in devising a reform roadmap by identifying the necessary interventions (policy changes, institutional reforms) and developing investment frameworks for the sustainable development of the sector.