Budget 2020 My Pick: Govt's focus on the water treatment sector to boost DI Pipes' prospects

Budget 2020: The water treatment companies may benefit from the upcoming Budget 2020 announcements which makes a strong case for companies like DI Pipes. The company is into the water treatment business. Experts give recommendations on this stock so keep an eye on it.

Zee Business' Executive Editor Swati Khandelwal says that the DI Pipes stocks would benefit because of the Government's focus on its flagship 'Jal Jeevan Mission'. The next five years are crucial for this company and the stocks would benefit from the implementation of the mission.  

To improve the drinking water situation in the country, the government may make some big announcements in the Budget 2020 that will be presented on 1 February by Finance Minister Nirmala Sitharaman. The government had recently started the 'Jal Jeevan Mission' and the government has ambitious plans to take drinking water to every household in the country. This makes this stock very attractive and strongly recommended.

The government is planning to put an end to the drinking water problem by taking piped water connections to every household in the country. The plan is to complete the task in next five years. This thrust on the sector augurs well for companies like DI Pipes.

There are still a lot of villages in the country where the piped water connections have not reached. This mission creates huge opportunities for companies like DI Pipes.

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Know the specialty of the 'Jal Jeevan Mission'
The government may allocate an initial budget of Rs 45000 cr in the Budget 2020
The government is planning to give a big boost to the 'Jal Jeevan Mission' in the Budget 2020
The government has recently created a ministry to implement the project.
The government is planning to spend at least Rs 2.7 lakh cr in the next five years on water treatment and purification
The government is focusing on building water infrastructure in the country
Over 81% households without clean drinking water

Which companies to focus on?
The investors should focus on companies that are into the business of manufacturing Ductile iron pipes and the electro steel business. Ductile iron pipes are used to transport water. Apart from them, the government will also be focusing on the electro steel sector. The companies providing water treatment services will also remain in the focus.