1Department of Civil Engineering, University institute of Technology, R.G.P.V., Bhopal, Madhya PradeshIndia-462036. E-mail: amitvishi@gmail.com
2Environmental Engineering Division Department of Civil Engineering, National Institute of Technology, MANIT-Bhopal, India-462003. E-mail: mukul_kuls@yahoo.com
Online published on 1 February, 2013.
Water is the basic need of the living things in this world and Water Supply Utility fulfils this requirement with quantitatively and qualitatively. In many developed countries water supply services gets the status of profitable Industries and set tariffs according to that. In developing countries like in India Urban water supply Utilities still running by government authorities/undertaking without Public-Private partnership practice in common hence there is need to estimate cost efficiency and assessment of the performance of urban water supply utilities in the state of Madhya Pradesh, India. Stochastic frontier analysis is a parametric approach to estimate the cost efficiency of urban water supply utilities in a very systematic manner with including effect of noise. Significant Models show that Municipality of Bhopal, Morena, Ratlam and Vidisha urban city performed better and scored highest estimated cost efficiencies, while least efficient utility of Hoshangabad Municipal Corporation would decrease their output cost by 35.84% to attain the level of the most efficient utility of the state.
Stochastic frontier analysis, cost function, benchmarking, urban water supply
