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* Enhanced fund allocation and timeline for JJM (Jal Jeevan Mission): The Cabinet has approved an enhancement of the total program outlay to Rs 8.69tn, with central assistance increased to Rs 3.59tn, up from Rs 2.08tn approved in FY20 (utilized over FY20–25). Over FY20–26, the Centre has released ~Rs 2.25tn, while states have contributed ~Rs 2.36tn toward the program. This implies an incremental allocation of ~Rs 1.34tn from the Centre and ~Rs 2.74tn from states under JJM 2.0. Further, as of Mar-26, tap water coverage has reached ~81.6% of rural households, implying a residual opportunity of ~Rs 1.04tn for incremental household connections, with the remaining outlay likely to be directed toward system operations & maintenance (O&M), source sustainability, and service delivery improvements.

* JJM 2.0 will introduce a national digital framework “Sujalam Bharat” to digitally map the entire drinking water supply chain from source to tap and assign a unique Service Area ID to each village, improving transparency and monitoring. The program will also strengthen community participation, with Gram Panchayats and VWSCs certifying project completion through “Jal Arpan”, while villages declare “Har Ghar Jal” only after ensuring proper O&M systems, supported by an annual “Jal Utsav” review mechanism.

* Universal rural tap connectivity target: JJM 2.0 aims to certify all Gram Panchayats as ‘Har Ghar Jal’ by providing tap water connections to all 193.6mn rural households across the country by Dec-2028.

* Rural tap water connectivity achieved ~82% by Mar-26: From a baseline of 32.3mn households (17%) with tap water access in CY19, the program has added ~125.6mn new connections during CY20–25. By Mar-26, ~158.0mn households (81.6%) out of 193.6mn rural households have tap water connections. PL view: The extension and higher allocation provide multi-year visibility for rural water infrastructure spending, supporting demand for pipes, pumps, EPC contractors, and water infrastructure players over the next 2–3 years, mainly for O&M opportunity. JJM 2.0 is expected to support growth for P&F companies with active participation in JJM-related projects. During FY22–24, when central fund utilization under the program reached ~Rs 1.65tn (68% of total spending over FY20–26), Supreme Industries/Astral/Finolex Industries reported P&F volume CAGR of ~35%/21%/19%, respectively. Hence, effective utilization of the enhanced allocation under JJM 2.0 could provide a demand tailwind for P&F companies going forward. However, over FY27–28, the allocation toward new tap water connections is estimated at ~Rs 1.04tn (covering the remaining ~18% households), which suggests a relatively lower incremental opportunity compared with the aggressive spending seen during FY22– 25.

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