Pipes Market Gains Momentum: Jal Jeevan Mission Funding Boosts Demand
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Pipe prices are seeing significant movement, with 100mm K7 DI pipes priced at Rs 1,340 and Rs 1,380, and ERW at Rs 55,000 per ton. Demand has surged recently, driven by government spending on the Jal Jeevan Mission, which is expected to exceed Rs 50,000 Cr in FY25.
Pipes Price
- 100mm K7 DI Pipes 1340 and Rs. 1380
- ERW: Rs 55,000/ton (exw Raipur)
- The current price of HDPE (High-Density Polyethylene) stands at Rs 126 per kilogram.
Pipe News
- Jal Jeevan Mission & Amrut 2.0: In the first six months of FY24-25, the amount provided by the Central Government is close to Rs 20,000 Cr. Considering things were slow in 1Q, we should be good for at least 50,000 Cr plus in FY25, even according to conservative estimates.
- Jal Jeevan Mission and the allocation for the scheme under the Budget 2024-25 is more than Rs 70,000 Cr. This number is closer to FY24 figure, but the spend in FY24 had increased yoy more than 25% in FY24 over FY23.
- In the first four years, the spend under AMRUT 2.0 has been only one third of the overall target for five years, i.e., 26519 Cr out of 76760 Cr.
Pipes Demand & Supply
- Good movement from purchase side, while demand has risen significantly in last week. It is possible that in the coming weeks, the AMRUT allocation may increase significantly. This may also be linked to progress on ground DI pipes requirement.
Pipes News
- In the first six months of FY24-25, the amount provided by the Central Government is close to Rs 20,000 Cr. Considering things were slow in 1Q, we should be good for at least 50,000 Cr plus in FY25, even according to conservative estimates. Jal Jeevan Mission and the allocation for the scheme under the Budget 2024-25 is more than Rs 70,000 Cr. This number is closer to FY24 figure, but the spend in FY24 had increased yoy more than 25% in FY24 over FY23. In the first four years, the spend under AMRUT 2.0 has been only one third of the overall target for five years, i.e., 26519 Cr out of 76760 Cr.
- Noida has begun laying pipelines for reusing STP treated water for irrigation. Currently, the authority is using groundwater for irrigation purposes in its green areas, which is a clear violation of the Water (Prevention and Control of Pollution) Act.
- Mangaluru is facing water supply disruptions following damage to the 1100 mm Thumbe-Padil water supply pipeline.
Expert Opinion
- The pipes market has shown increased strength on the purchase side in recent weeks, driven by steady government spending on the Jal Jeevan Mission (JJM). Despite a six-month gap between the interim and final budgets, the government remains committed to its FY25 target of Rs 70,000 Cr for JJM, signaling confidence in maintaining spending levels without a slowdown.
Daily Market Report
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