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JJM 2.0: Demand Catalyst for companies across EPC, Pipes and Pumps

ICICIdirect Research 13 Mar 2026 DISCLAIMER

The Union Cabinet of India has approved the extension of the Jal Jeevan Mission to December 2028, launching JJM 2.0 with an enhanced total outlay of ₹ 8.69 lakh crore, including ₹ 3.59 lakh crore central assistance, to ensure 100% functional tap water connections for all 19.4 crore rural households. Rural tap water coverage has increased from 17% in 2019 (3.23 crore households) to ~81%+ (~15.8 crore households) currently, implying ~3-4 crore additional connections still to be executed along with network strengthening and system maintenance. The next phase will focus on verifiable last mile delivery rather than infrastructure creation alone, with structural changes including national digital framework aimed at improving governance and transparency.
JJM Backdrop: India had been witnessing lower outlay towards Jal Jeevan Mission during FY25 and FY26 versus the budgeted allocations. JJM spends in FY25 stood at ₹ 22615 crore (down 68% Vs BE) in FY25 and allocation of ₹ 17000 crore (down 75% Vs BE) in FY26. For FY27, Budgeted allocation towards JJM stands at ₹ 67670 crore (up 298% Vs FY26RE) highlighting government’s continued focus on reviving investments in these schemes.
Beneficiaries:
EPC and Infrastructure players – EPC companies are expected to benefit from expected release of dues, which had been a key hangover for the companies leading to higher working capital allocation and slowing pace of execution for JJM orders. Higher allocation coupled with release of dues will be positive and provide incremental opportunity of new order inflows for EPC players like PNC Infra, NCC, HG Infra, Welspun enterprises, KEC International etc
Plastic piping players – JJM had been key structural demand driver for the piping industry, which is expected to benefit from the expected incremental demand generation over FY27-FY29. On the PVC pricing front, PVC prices have emerged from historical lows seen during December 2025 aided by China’s suspension of 13% export tax rebate from April 2026. Further, rise in crude oil prices owing to ongoing Iran conflict has further inched up PVC prices globally and domestically. The rise in PVC prices has prompted dealer re-stocking improving volume growth outlook while it may lead to inventory gains thereby improving EBITDA margins and net earnings growth. The key beneficiaries from our coverage universe are Astral, Supreme Industries and Prince pipes.
Pump manufacturers – Pump manufacturers such as Shakti Pumps is likely beneficiary due to rising demand for pumping systems in rural water supply schemes.

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