With the announcement of 'Nal se Jal' scheme, water and sanitation sector is likely to attract investment worth Rs 6.3 lakh crore in the next five years, according to a report.
According to JM Financial Institutional report, the government's new 'Nal se Jal' scheme, which aims to provide piped water connection to every household by 2024, will likely lead to a massive jump in the investment in water and sanitation.
The investments will be made in the various verticals such as pipes, EPC, water treatment pumps and valves, cement, among others, according to the report.
"Our study of sample projects in water and sanitation and interactions with water-related policy experts indicate per capita investment spending could range around Rs 8,000-9,000 for providing piped water access. This would amount to the spending of at least Rs 5.6 trillion-6.3 trillion over FY20-25, and would be almost double of the spending on water and sanitation over FY14-19," the report said.
It further said that there are wide variations in the estimated investments across the states and will depend on the quantity of available drinking water, quality of water for drinking purposes, geography and terrain. The cost varied from Rs 18,000 in the hilly state of Uttarakhand to Rs 3,000 in Karnataka.
Besides, east and central states would account for the bulk of investment in the piped drinking water project, the report noted.
In the budget, the Jal Shakti Ministry, which is executing the government's mission to provide clean and piped drinking water to every household in the country, has earmarked Rs 28,261.59 crore for the scheme.
The Ministry of Drinking Water and Sanitation and Ministry of Water Resources and Ganga Rejuvenation have been merged into the Jal Shakti Ministry in the second term of the Narendra Modi government.