Shakti Pumps, Roto Pumps, Oswal Pumps, Kirloskar Brothers, KSB shares zoom up to 19%; here's why

Shares of pump manufacturers gained sharply in Wednesday's early trade after the Union Cabinet approved an extension of the Jal Jeevan Mission (JJM) with a significantly higher outlay.

Shakti Pumps India Ltd led the rally, soaring 19.20 per cent to hit a high of Rs 584.50. Roto Pumps Ltd jumped 17.66 per cent to Rs 63.95, while Oswal Pumps Ltd moved 10 per cent higher to trade at Rs 331.40. KSB Ltd and Kirloskar Brothers Ltd also gained 4.48 per cent and 4.21 per cent, respectively.

The Cabinet cleared the Ministry of Jal Shakti's proposal to restructure and reorient the implementation of the Jal Jeevan Mission (JJM) from infrastructure creation to service delivery, supported by improved drinking water governance and a stronger institutional ecosystem aimed at ensuring sustainable rural piped potable water supply.

For restructuring JJM with a focus on structural reforms, the Cabinet approved an enhancement in the total outlay to Rs 8.69 lakh crore, with total central assistance of Rs 3.59 lakh crore. This represents an increase from the Rs 2.08 lakh crore approved in 2019-20, translating into an additional central share of Rs 1.51 lakh crore.

"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. 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," the government stated in a release.

"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," it added.