Efficient water utilities: use of performance indicator system and data envelopment analysis

A number of international initiatives have been undertaken in recent years to develop benchmarking frameworks. Performance indicator system and data envelopment analysis are the two most widely used methods for performance assessment as is evident from the established literature on benchmarking. This paper demonstrates two benchmarking approaches using these two methods for the selected 12 Indian urban water utilities (municipal bodies) of Maharashtra state/province. Both the methodologies have been compared and analysed. The outcomes from both the methods are largely found to be consistent and mutually complementary. The proposed benchmarking techniques would serve as an important tool to assess the performance, induce competitive environment and encourage efficient practices by the urban water utilities.