Nov 8, 2011

Urban Infrastructure : Investment Vs Operations and Maintenance (O&M)

Investment Vs O&M
Urban Infrastructure Cost


Per Capita Investment Cost by Sector
(Rs at 2009-10 prices)
Source:  Report on Indian  Urban Infrastructure and Services 

Per Capita Operations and Maintenance Cost (annual) by Sector

Source:  Report on Indian  Urban Infrastructure and Services 


Urban Infrastructure Investment Requirement (2012-31)
(Rs crore)
                            
Source:  Report on Indian  Urban Infrastructure and Services 

Operations and Maintenance Expenditure by Sector (2012-31)

Source:  Report on Indian  Urban Infrastructure and Services 

Pattern of per Capita investment in different urban infrastructure sectors and O&M cost are somewhat different from each other, while Urban Roads demands more capital investment , Water Supply, Sewage, SWM, Urban Road & Transport require more O&M investment. 

"Water utilities in India are typically able to recover only 30-35 per cent of the operations and maintenance (O&M) cost.Even with current levels of highly inadequate service, solid waste management accounts for 25-50 per cent of a ULB’s expenditure (World Bank 2006), but cities recover less than 50 per cent of the O&M cost, according to a study by the Ministry of Urban Development, Government of India. ULBs will be required to invest 54 per cent on capital investment and close to 25 per cent on the O&M of physical assets by 2021-22. In practice, user charges cover less than 50 per cent of the O&M cost of basic infrastructure services in India, on an average"

Source:  Report on Indian  Urban Infrastructure and Services 
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