National Water Policy 2002
Financial and Physical Sustainability
11. Besides creating additional water resources facilities for various uses, adequate emphasis needs to be given to the physical and financial sustainability of existing facilities. There is, therefore, a need to ensure that the water charges for various uses should be fixed in such a way that they cover at least the operation and maintenance charges of providing the service initially and a part of the capital costs subsequently. These rates should be linked directly to the quality of service provided. The subsidy on water rates to the disadvantaged and poorer sections of the society should be well targeted and transparent.
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