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Telangana CM orders CBI probe into irregularities in Kaleshwaram project
The Ghose Commission submitted its report to the government on July 31 and it was tabled in the state assembly on Sunday
Telangana chief minister A Revanth Reddy on Monday ordered a comprehensive probe by the Central Bureau of Investigation (CBI) into the alleged irregularities in the construction of the Kaleshwaram lift irrigation project.
The chief minister made an announcement to this effect while replying to a marathon debate over the report of the judicial commission headed by former Supreme Court judge Justice Pinaki Chandra Ghosh in the assembly that went on till the early hours of Monday.
A senior official in the chief minister’s office said the state government would soon issue an order reviving the general consent to be given to the CBI for investigating the cases in the state. The general consent to the CBI was withdrawn on August 30, 2022 by the then Bharat Rashtra Samithi (BRS) government headed by then chief minister K Chandrasekhar Rao which barred the CBI from probing the cases in the state.
The Ghose Commission that probed the alleged irregularities, misuse of public funds and corruption in the construction of Medigadda, Annaram and Sundilla barrages in the Kaleshwaram project submitted its report to the government on July 31 and it was tabled in the state assembly on Sunday.
“Since the project involved inter-state entities, many agencies of the Central and state governments in the design, construction and financing of the project, the government has decided to hand over this case to the CBI,” Revanth Reddy said.
During the debate on Ghose commission report in the assembly, the CM said the Kaleshwaram Irrigation Project Corporation Ltd (KIPCL), which was formed for the construction of the Kaleshwaram project, had borrowed ₹85,449 crore. The previous BRS government borrowed ₹27,738 crore at 11.5% interest from Power Finance Corporation and another ₹30,536 crore from the Rural Finance Corporation at 12% interest.
“We have paid ₹19,879 crores as principal for the loans they took so far. Another ₹29,956 crore was paid as interest to various banks. A total of ₹49,835 crores have been paid to banks so far. We still have a burden of ₹60,869 crore,” Revanth Reddy said, adding that it required another ₹47,000 crore to complete the leftover work in the Kaleshwaram project.
“The government has ordered this probe in line with established guidelines. The truth must come out, and those responsible for looting public money through Kaleshwaram will be held accountable,” Revanth Reddy said.
The report of the Justice Ghose commission tabled in the House concluded that the unilateral decisions of then CM K Chandrashekar Rao were the primary reason for the sinking of Medigadda barrage and damages to other barrages in the Kaleshwaram project, resulting in massive financial losses to the state.
The report stated that KCR ignored expert advice, acted autocratically in the planning and construction of the project, and committed errors in determining locations for barrages.
The commission pointed out that neither the report of engineering experts nor the recommendations of the cabinet sub-committee ever suggested constructing the barrages at Medigadda, Annaram, or Sundilla. The decisions on the project were taken entirely by KCR, it said.
It asserted that the state government has the legal authority to take appropriate action against KCR and recommended that officials involved in irregularities should not be spared under any circumstances.
The report found rampant irregularities, lack of planning, financial mismanagement, and negligence in supervision right from the initiation of the project through tendering, construction, and maintenance phases.
It dismissed the claims made by KCR, former Irrigation Minister T Harish Rao, and former finance minister Etela Rajender that the cabinet sub-committee had recommended the locations for the barrages.
The report exposed that KCR functioned like an engineer rather than a chief minister, even using Google Maps to finalize the alignment, design, and capacity of the barrages. It noted that Cabinet approval was not taken for several critical decisions, and even in official files related to the barrages, only the signatures of KCR and Harish Rao were found.
The Commission further revealed that administrative approvals for the three barrages were issued on March 1, 2016. The final DPR was submitted by WAPCOS only on March 27, 2016, indicating that key decisions were taken prematurely without necessary technical validations.
The commission found that an expert panel had recommended constructing a barrage at Vemanapalli on the Pranahita river instead of Medigadda, citing better economic viability. That report, however, was suppressed by the government while proceeding with the Medigadda plan.
The DPR for Kaleshwaram was officially submitted to the Central Water Commission (CWC) only in February 2017, but the Telangana government had already issued administrative approvals for construction 11 months earlier in March 2016 and signed contracts with construction agencies by mid-2016. “By March 2018, the state had already spent ₹30,653 crore, even before receiving CWC’s formal clearance,” it said.
