New Delhi, March 24: The Water Life Mission 2.0 is projected to create approximately ₹3 lakh crore in opportunities related to operations and maintenance (O&M). According to a report released on Tuesday, this initiative will extend beyond mere infrastructure development. It will focus on ensuring the long-term proper functioning and maintenance of water supply systems.
The ICRA report indicates that the total budget for this mission has now exceeded ₹8.69 lakh crore. Additionally, it is being transformed into a service delivery model, which will benefit the engineering, procurement, and construction (EPC) sector.
The report states that the extension of project timelines and increased budgets will improve payment timelines for companies. Currently, many states are experiencing payment delays exceeding six months. However, the goal is to reduce this to less than 60 days by September 2026.
The government has extended the deadline for providing 100% tap connections to 19.4 crore rural households from 2024 to December 2028.
The report highlights that large and organized companies producing PVC and HDPE pipes will particularly benefit from this initiative, as there will be a greater emphasis on quality, continuous supply, and energy efficiency.
Moreover, companies with robust technology and service networks are expected to gain more from this transition.
It was also noted in the report that a significant gap has emerged between budget allocations and actual expenditures post-2025-26. This indicates that there are challenges in implementing the plan, and the government is now focusing more on sustainable and improved service delivery.
Notably, the Water Life Mission (JJM) was launched in August 2019, aiming to provide clean drinking water through taps to every rural household.
So far, the number of households with tap connections has increased nearly fivefold, rising from 32.36 million to 158.23 million. By February 2026, rural coverage has surpassed 81%.
However, despite this significant achievement, issues with water quality and supply have been observed in several areas. Consequently, the government has decided to transition to a service-oriented model to enhance service delivery.
Under Water Life Mission 2.0, there will be a strong emphasis on regular water supply, quality monitoring, and oversight through digital systems, such as the Sujalam Bharat platform.
Additionally, the role of gram panchayats and local bodies will be strengthened to develop rural water supply as a sustainable public service rather than a one-time project.
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