ICRA expects
about Rs. 3.0 lakh crore worth of O&M opportunities under JJM 2.0 on the
back of increased outlay and pivot towards a “service-quality” approach from an
infrastructure creation focus. Further, realisation of stuck receivables and
execution of stalled projects is expected to pick up, going forward.
The Jal
Jeevan Mission (JJM), launched in August 2019, is a Government of India
initiative undertaken through the Ministry of Jal Shakti, with the goal of
providing FHTCs to every (nearly 19.4 crore) rural household on a long-term
basis by 2028. The scheme aims to provide safe and adequate (55 LPCD) potable
water through tap connections and subsumes the National Rural Drinking Water
Programme, with a focus on community-led initiatives, source sustainability and
water quality.
Since its
inception, JJM’s expenditure has been broadly tracked by budgeted outlays
during the ramp-up till FY2024, with expenditure exceeding BE estimates in
FY2021-2022 due to rapid execution post Covid-19 and strong budgetary support.
However, from FY2024–2025, expenditure lagged budgetary outlay significantly
amid execution bottlenecks and a policy shift from rapid coverage to
sustainable service delivery. With the introduction of JJM 2.0, this gap is
expected to reduce as execution of stalled projects gains momentum.
