The share price of the water pumping systems manufacturer Shakti Pumps soared to
₹583.30 on Wednesday, up by over 19% from the previous close of ₹489.95.
Jal Jeevan Mission
The stock rallied as the Indian government extended the Jal Jeevan Mission (JJM). The program was launched in 2019 with the objective of providing safe and adequate tap water to every rural household by 2024.
India launched the scheme in a bid to prevent potentially fatal water-borne diseases such as diarrhea. Unfortunately, the initiative has only reached less than 82% of the original target coverage.
“From the baseline of 3.23 crore (17 per cent) rural households with tap water connections in 2019, so far, more than 12.56 crore additional rural households have been provided with tap water connections under JJM,” the government said.
“At present, out of 19.36 crore rural households identified by the States/UTs in the country, around 15.80 crore (81.61 per cent) households are reported to have tap water connections as on date.”
JJM 2.0
To meet the coverage target, the Union Cabinet on Tuesday extended the program until 2028 and increased the funding.
The new phase of the program dubbed JJM 2.0 will shift its focus from infrastructure creation into ensuring the reliable service delivery and sustainability of water supply systems in the rural area.
“JJM 2.0 would facilitate the certification of all Gram Panchayats as ‘Har Ghar Jal’, by provisioning tap water connection to all the 19.36 Crore rural households across the country by December 2028 while ensuring adherence to timelines, scheme sustainability, and delivery of citizen-centric water services through Separate MoUs with State/UTs.”
Impact on Stocks
The share price of pump manufacturers, including Shakti Pumps, jumped amid optimism that the next phase of the Jal Jeevan Mission will drive higher demand for their products.
At the time of writing, Shakti Pumps is trading for ₹549.30. The stock’s price is up by 13.44% over the past five trading days.
Source: https://coinpaper.com/15342/shakti-pumps-share-price-soars-19-as-india-extends-jal-jeevan-mission-to-2028
