Jal Jeevan Mission 2.0 is expected to generate Rs 3 lakh crore in operations and maintenance opportunities as it transitions from infrastructure development to ensuring sustainable operation and maintenance of connections, a report revealed. The total outlay for the mission has more than doubled to Rs. 8.69 lakh, with a shift towards a service-delivery model that will benefit the Engineering, Procurement, and Construction (EPC) sector.
The extended timeline and increased outlay are anticipated to enhance receivable cycles, reducing them to below 60 days by September 2026, which currently exceed six months in various states, according to the report. The deadline for achieving 100% coverage for 19.4 crore rural households under the mission has been extended to December 2028 from the initial target of 2024.
Organized manufacturers capable of scaling production, particularly in the PVC (polyvinyl chloride) and HDPE (high-density polyethylene) segments, are expected to gain from the transition towards functionality, uptime, and energy efficiency. The focus on branded, technically proficient manufacturers with robust service networks is likely to increase post FY25.
Large budget cuts at the revised estimate stage post FY25 have led to a significant disparity between the budgeted outlay and actual expenditure, indicating challenges in execution, quality, and a policy shift towards sustainable service delivery. The Jal Jeevan Mission, launched in August 2019, aims to provide safe and sufficient potable water through tap connections, replacing the National Rural Drinking Water Programme.
The mission has significantly increased tap water connections in households from 323.6 lakh to 1,582.3 lakh since its inception, achieving over 81% rural coverage as of February 2026. Despite the high coverage, the persistence of deficiencies necessitated a shift towards a quality-service approach, as highlighted by the firm.
Jal Jeevan Mission 2.0 emphasizes reliable service delivery through operations and maintenance systems, water quality monitoring, and digital oversight via the Sujalam Bharat platform. It also prioritizes Gram Panchayats and village institutions in implementation, treating rural water supply as a local public utility rather than a one-time infrastructure project.
