‘Nal se Jal’ scheme may attract Rs 6.3 lakh crore investments in 5 years

NEW DELHI: The Centre’s new ‘Nal se Jal’ scheme is expected to draw investments of worth Rs 6.3 lakh crore in the next five years, according to JM Financial Institutional report.

‘Nal se Jal’ scheme, which intends to deliver piped water connection to every household by 2024, will likely lead to a substantial jump in the investment in water and sanitation.

“Our study of sample projects in water and sanitation and interactions with water-related policy experts indicate 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 Rs 5.6 trillion-6.3 trillion over FY 20-25, and would be almost double of the spending on water and sanitation over FY 14-19,” states the report.

According to the report, there are various differences in the projected investments across the states and will depend on the quantity available and 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. In addition, 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.