Telangana’s Chief Minister A Revanth Reddy has announced a Central Bureau of Investigation (CBI) inquiry into the alleged financial and structural irregularities concerning the Kaleshwaram Lift Irrigation Project. The announcement came early on Monday morning following a late-night debate in the Legislative Assembly.
The CM stated that a CBI investigation was the appropriate course of action given the project’s complex nature, which involves various interstate issues, as well as multiple central and state government departments and financial institutions. He explained that these bodies, including central government agencies and lenders, were involved in the project's design, construction, and funding. “Therefore, with the Speaker's permission, the House has decided to hand over the investigation to the CBI,” Reddy said, adding that the government would be issuing formal orders for the probe.
Reports from the National Dam Safety Authority (NDSA) and a judicial commission suggest a more comprehensive investigation into the case. Reddy noted that the NDSA report had attributed the failure of the project's Medigadda barrage to defects in its planning, design, and quality control. Similarly, the judicial commission's findings identified several irregularities and defects that warranted criminal action.
During the debate, Reddy accused the previous Bharat Rashtra Samithi (BRS) government of having changed the location of the barrage from Thummidi Hatti to Medigadda in order to “loot Telangana’s public funds.” This was allegedly done despite a report from a group of retired engineers advising against it.
On Sunday, the government tabled the report of the judicial commission, which was headed by former Supreme Court judge Justice PC Ghose. The report, submitted to the government on July 31, suggested that the state government should take legal action against former Chief Minister K Chandrasekhar Rao.
The commission’s report stated that while the then Minister for Irrigation gave random instructions and the Minister for Finance and Planning was apathetic towards the state's financial health, it was the then Chief Minister who could be held directly and vicariously accountable for the “irregularities and illegalities” in the project's planning and construction. The report concluded, however, that it was up to the government to examine and take legal action.
Reddy disclosed that the government has so far paid ₹49,835 crore towards the loan for the Kaleshwaram project, with ₹29,956 crore in interest alone. He criticised the BRS government for having secured loans at exorbitant interest rates and noted that he had since managed to get a debt restructure of over ₹26,000 crore from the central government.
The BRS party staged a walkout from the assembly during the discussion, alleging they were not given adequate time to voice their side of the story on the judicial commission’s report. The Kaleshwaram Lift Irrigation Project, a multi-purpose project on the Godavari River, became a key election issue in 2023 after the barrages were damaged.
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