Investment in water infra will spur growth

According to the analysts, providing water connections to every household in the country at an estimated capital expenditure of over ₹3 lakh crore is expected to create huge business opportunities for corporates.

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Why is it in the news ?

  • According to the analysts, providing water connections to every household in the country at an estimated capital expenditure of over ₹3 lakh crore is expected to create huge business opportunities for corporates.
  • According to them, the move would provide employment to millions of people and may kick-start the investment cycle.

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Key Analysis:
  • All investments in water supply-related projects should be made by the government.
  • The private sector would not be keen to invest in such projects since pay-per-use model has not been established in the sector.
  • Also, such investment results in job creation and ancillary economic activities.
  • So, from a quality of expenditure perspective, Jal jeevan is a welcome move to kick-start aggregate demand.
  • However, some analysts expressed the doubt on the availability of huge funds for these projects. 

Source

The Hindu