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Report on Ludhiana Corporation’s water supply and sewerage business (English)

The present study is a part of non-lending technical assistance (‘NLTA’) support on Transformative change in Urban Services Delivery in Ludhiana and Ludhiana cities to the Government of Punjab (‘GoP’). Some of the components of the study includes institutional, operational and water governance model for water (including waste water) sector in the two cities of Ludhiana and Ludhiana cities in Punjab such that there is sustainability in the sector operations. The institutional model is needed to ensure that operations are carried out in an efficient and optimal fashion at the municipal corporation level and could draw from experience of other states in the country. The study covers: documentation of the current financial position of water and sewage services in the cities, clarifying the costs and the various sources of revenues, across water sector and the municipal corporation operations; analyzing he billing data base that is used by the corporations (this would enhance the validation of data sourced from the accounting department); identifying the underlying factors that influence the cost drivers, for e.g. the power consumption in tube well operations vis-à-vis the cost of operating a surface based waster system etc; importantly consider the capex propped under different options, continuing to operate with the tube wells in the coming years or switch to surface water provision with attendant costs like water treatment, bulk water transmission etc; understand the tariff structure as is worked out in the city and its implications on the revenues; and provide a clear view of the value chain of operations in the WS sector as well as ULB operations.


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    Working Paper

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    South Asia,

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    Report on Ludhiana Corporation’s water supply and sewerage business

  • Keywords

    profit and loss account;maintenance of water supply;capital expenditure;number of connections;general fund;share of capital;abolition of octroi;areas of health;source income;source of income;income and expenditure;reduction of deficit;interest loan;intermittent water supply;cash flow statement;local development fund;increase in income;water and sewage;source of revenue;bulk water transmission;earnings before interest;asset and liability;return on capital;repair and maintenance;value added tax;average monthly bill;Property tax;debt service;projection period;core city;tariff increase;municipal corporation;water sector;flat tariff;operational deficit;deficit financing;house tax;flat rate;city limits;financial model;tube wells;forecast period;funds flow;financial forecast;city funds;administrative expense;surface water;capital contribution;surplus fund;hard copy;water accounting;accounting department;power consumption;project costing;water treatment;moot point;operations cost;tariff structure;income generation;annual tariff;city finance;basic rate;initial tariff;net effect;expense growth;subsequent years;operational level;excise duty;distribution network;capital expense;term sheets;residual value;net position;cash deficit;street light;clear view;financial impact;commercial organisation;base case;urban transport;water table;tariff schedule;tariff rate;disposal charges;commercial consumer;preventive maintenance;accrual basis;income account;sewerage system;license fee;financing cost;loan repayment;special grant;general budget;municipal account;accrual concept;chartered accountant;financial statement;proper accounting;supply water;study including;Urban Renewal;ground water;financing option;depreciation charge;operational expenditure;present study;tax adjustment;water governance;waste water;institutional model;financial viability;sewerage service;regulatory commission;public-private partnership;



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Report on Ludhiana Corporation’s water supply and sewerage business (English). Washington, D.C. : World Bank Group.