The correct option is (c).
Explanation
Urban Local Bodies, specifically Municipal Corporations, are responsible for providing public amenities such as water supply. While many municipalities face financial deficits, certain corporations have established models to ensure financial sustainability through user charges while retaining public control.
Statement 1 is Incorrect.
The water supply department in Mumbai does not rely entirely on central government subsidies. It has established a revenue model based on user charges that allows it to fund its own operations.
Statement 2 is Correct.
The Mumbai water supply department is a notable example of a public utility that raises enough money through water charges to cover its expenses on supplying water. This financial self-sufficiency is often cited as a counter-argument to the necessity of privatization for efficiency.
Statement 3 is Correct.
The water supply in Mumbai is operated by the Municipal Corporation (a public department). It has not undergone full privatization, demonstrating that public sector bodies can efficiently manage service delivery and cost recovery.
Key Takeaway
The Mumbai Municipal Corporation's water department serves as a case study of a public utility that is financially self-sustaining through water charges, operating successfully without relying on full privatization or total dependence on subsidies.