You are involved in setting up a water supply project in a remote area. Full recovery of cost is impossible in any case. The income levels in the area are low and 25% of the population is below poverty line (BPL). When a decision has to be taken on pricing you would…

Recommend that the supply of water be free of charge in all respects.

Recommend that the users pay a one time fixed sum for the installation of taps and the usage of water be free.

Recommend that a fixed monthly charge be levied only on the non-BPL families and for BPL families water should be free.

Recommend that the users pay a charge based on the consumption of water with differentiated charges for non-BPL and BPL families.