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Jal Jeevan Mission 2.0 to drive demand across EPC, pipes and pumps

ICICIdirect Research 13 Mar 2026 DISCLAIMER

The Union Cabinet has approved JJM 2.0 with an outlay of ₹8.69 lakh crore including ₹3.59 lakh crore central assistance to achieve 100% tap water connections for 19.4 crore rural households by December 2028. Rural coverage has already risen from 17% in 2019 (3.23 crore households) to over 81% (~15.8 crore households), leaving 3–4 crore connections along with network strengthening and maintenance to be completed.

The next phase will focus on verifiable last mile delivery, supported by a national digital framework to improve monitoring, governance and transparency.

Spending revival
JJM spending had slowed earlier with ₹22,615 crore in Financial Year 2025 (68% below Budget Estimate) and ₹17,000 crore allocation in Financial Year 2026 (75% below Budget Estimate). For Financial Year 2027, allocation has increased sharply to ₹67,670 crore, indicating renewed government focus.

Key beneficiaries

  • Engineering Procurement Construction companies
    Higher allocation and release of pending dues should improve execution and working capital cycles. Potential beneficiaries include PNC Infra, NCC, HG Infra, Welspun Enterprises and KEC International.
  • Plastic pipe manufacturers
    JJM continues to be a structural demand driver for piping companies. Demand may rise during Financial Year 2027 to Financial Year 2029. PVC prices have recovered from lows seen in December 2025, supported by China suspending a 13% export tax rebate from April 2026 and higher crude prices. Restocking and possible inventory gains may support margins. Key beneficiaries include Astral, Supreme Industries and Prince Pipes.
  • Pump manufacturers
    Companies such as Shakti Pumps may benefit from higher demand for pumping systems in rural water supply schemes.

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