NewKerala.com

Jal Jeevan Mission 2.0 to Unlock Rs 3 Lakh Crore O&M Market

The Jal Jeevan Mission 2.0 is set to create a massive Rs 3 lakh crore operations and maintenance opportunity as it pivots from infrastructure creation to sustainable service delivery. ICRA's report notes the mission's outlay has more than doubled and its implementation timeline for 100% rural household coverage is extended to December 2028. The new phase emphasizes reliable service through O&M systems, water quality monitoring, and digital oversight via the Sujalam Bharat platform. This shift is expected to benefit organized manufacturers and place Gram Panchayats at the center of treating water supply as a local utility.

Key Points: Jal Jeevan Mission 2.0: Rs 3 Lakh Crore O&M Opportunity

  • Rs 3 lakh crore O&M opportunity
  • Deadline extended to December 2028
  • Focus on sustainable service delivery
  • Gram Panchayats at implementation centre
2 min read

India's Jal Jeevan Mission 2.0 likely to unlock Rs 3 lakh crore O&M opportunity: Report

ICRA report says Jal Jeevan Mission 2.0's shift to service delivery will create a massive Rs 3 lakh crore O&M market, extending deadline to 2028.

"The shift to service-delivery model will support Engineering, Procurement, and Construction (EPC) sector. - ICRA Report"

New Delhi, March 24

Jal Jeevan Mission 2.0 will lead to Rs 3 lakh crore of operations and maintenance opportunities as the programme shifts from building infrastructure to ensuring that the connections are sustainably operated and maintained, a report said on Tuesday.

The report from ICRA said the mission's total outlay more than doubled to Rs. 8.69 lakh, and the shift to service-delivery model will support Engineering, Procurement, and Construction (EPC) sector.

Further, the extended timeline and higher outlay should improve receivable cycles, and it will fall below 60 days by September 2026, which have currently stretched beyond six months in several states, the firm said.

The implementation timeline to achieve 100 per cent coverage for 19.4 crore rural households has been extended till December 2028 from the previous deadline of 2024.

The firm predicted that organised manufacturers capable of scaling production, especially in the PVC (polyvinyl chloride) and HDPE (high-density polyethylene) segments, are expected to benefit.

The shift toward functionality, uptime, and energy efficiency favours branded, technically capable manufacturers with strong service networks.

From FY25 onwards, large cuts at the revised estimate stage led to a sharp divergence between budgeted outlay and actual expenditure, highlighting execution bottlenecks, quality concerns, and a policy shift towards sustainable service delivery.

The Jal Jeevan Mission (JJM), launched in August 2019, aims to provide safe and adequate potable water through tap connections and subsumes the National Rural Drinking Water Programme.

Since launch, households with tap water connections have increased nearly five-fold from 323.6 lakh to 1,582.3 lakh, raising rural coverage to over 81 per cent as of February 2026.

The prevalence of deficiencies, despite achieving high coverage, necessitated the transition to a quality-service approach, the firm noted.

JJM 2.0 shifts the emphasis to reliable service delivery, through O&M systems, water quality monitoring, and digital oversight through the Sujalam Bharat platform.

It also places Gram Panchayats and village institutions at the centre of implementation, treating rural water supply as a local public utility rather than a one-time infrastructure project.

- IANS

Share this article:

Reader Comments

S
Shreya B
While the numbers sound impressive, the real test is on the ground in our villages. My hometown got a tap connection last year, but the water pressure is very low and it's not always clean. Putting Gram Panchayats in charge is a good step, but they need proper training and funds for maintenance.
A
Aryan P
Rs. 3 lakh crore for O&M? That's huge. This will create so many local jobs for plumbers, technicians, and water quality monitors. Hope the contracts go to genuine Indian companies and not just the big corporates. Empowering village institutions is the way to go for sustainability.
P
Priyanka N
Finally, a focus on quality and not just quantity! The article mentions "deficiencies despite high coverage" – this is so true. In my district, many taps were installed but are now broken. Shifting to a service model with digital tracking (Sujalam Bharat) is a welcome and much-needed change.
D
David E
As someone working in the infrastructure sector, this is a significant policy evolution. Treating water supply as a utility, not a project, is the global best practice. The challenge will be in execution and ensuring the funds reach the last mile without leakages. The extended timeline is realistic.
M
Meera T
This is excellent news for rural women and girls. We spend hours fetching water. A reliable tap connection at home changes everything – more time for education, work, and rest. Hope the mission ensures water quality is monitored regularly, not just at the time of installation. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50