Shares of Shakti Pumps (India) Limited surged more than 16% in Wednesday’s trading session as investors reacted to policy developments that could boost demand for solar pumps and water infrastructure solutions across rural India.
The sharp move in the stock comes after two major government announcements linked to renewable energy adoption in agriculture and rural water supply expansion.
Government Plans PM KUSUM 2.0
One of the key triggers for the rally is the government’s plan to introduce a new version of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme.
Union Minister Pralhad Joshi said the government is preparing PM KUSUM 2.0, which is expected to come with higher targets and increased budget allocation. The scheme aims to further accelerate the adoption of renewable energy in the agriculture sector.
Launched in 2019 with an outlay of ₹34,422 crore, the scheme aims to add 34,800 MW of solar capacity in agriculture by March 2026 while reducing irrigation costs for farmers. So far, more than 10 lakh standalone solar agricultural pumps have been installed and over 13 lakh grid-connected agricultural pumps have been solarised across the country.
The proposed version 2.0 is expected to include a dedicated 10 GW agri-PV component, allowing solar panels to be installed alongside crops so farmers can generate electricity while continuing agricultural activities on the same land.
For companies such as Shakti Pumps, which manufacture solar-powered agricultural pumping systems, an expansion of the scheme could significantly increase order opportunities.
Jal Jeevan Mission Extension
Another factor supporting the stock is the extension of the Jal Jeevan Mission.
The Union Cabinet, chaired by Narendra Modi, approved the extension of the rural drinking water programme until December 2028 with a revised outlay of ₹8.69 lakh crore, according to Union Minister Ashwini Vaishnaw.
The mission, launched in 2019, aims to provide safe and adequate drinking water through tap connections to every rural household in India.
Under the restructured programme, the focus will shift from just infrastructure creation to service delivery and long-term sustainability of rural water supply systems. The initiative will also introduce a national digital framework called “Sujalam Bharat,” which will digitally map the entire drinking water supply chain—from water source to household tap—for every village.
The expansion of large-scale rural water infrastructure is seen as supportive for companies involved in pumps, motors, and water management systems, which has contributed to positive investor sentiment around Shakti Pumps.