The Centre’s thrust on water availability and supply could translate into a capital expenditure of $270 billion over five to 15 years, according to Bank of America Merrill Lynch. “Flagship schemes have a $270-billion or Rs 18.9-trillion capital expenditure potential over five to 15 years,” the firm said in its note. These funds are to be spent for piped water supply, Namami Gange, river interlinking and the Pradhan Mantri Krishi Sinchayee Yojana.
Amish Shah, co-head of research-India for Bank of America, said these schemes could provide work contracts to firms. Ways to attract private investments in these schemes have not been formulated yet, Shah said.
The investment figure includes funds required for both central and state water schemes. Of the estimated $270 billion, funds worth $94 billion are expected to be used for piped-water supply in the next five years.
Of this amount, 45 per cent funds would be needed for pipes, opening a huge market for PVC pipe manufacturers, among others.