Macro Economy

Nal se Jal: Water, sanitation may attract ₹6.3-lakh crore investment, says report

PTI New Delhi | Updated on July 14, 2019

With the announcement of the Nal se Jal scheme, the water and sanitation sector is likely to attract investment worth ₹6.3 lakh crore in the next five years, according to a report.

The JM Financial Institutional report said the government’s new scheme, which aims to provide piped water connection to every household by 2024, will likely lead to a massive jump in investments in water and sanitation.

The investments will be made in various verticals, such as pipes, EPC,water treatment pumps and valves and cement, according to the report.

“Our study of sample projects in water and sanitation and interactions with water-related policy experts indicate that per capita investment spending could range around ₹8,000-9,000 for providing piped water access. This would amount to the spending of at least ₹5.6-6.3 trillion over FY20-25, and would be almost double of the spending on water and sanitation over FY14-19,” the report said.

Varying investments

It further added that there are wide variations in the estimated investments across States, which will depend on the quantity and quality of available drinking water, geography and terrain.

The cost varied from ₹18,000 in Uttarakhand to ₹3,000 in Karnataka.

In addition, the eastern and central States would account for the bulk of investment in the piped drinking-water project, the report noted.

In the recent Budget, the Jal Shakti Ministry had earmarked ₹28,261.59 crore for the scheme.

The Ministry has been formed by the merger of the Ministry of Drinking Water and Sanitation and Water Resources and Ganga Rejuvenation in the second term of the Narendra Modi government.

Published on July 14, 2019

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