Hyderabad, September 1: Telangana Chief Minister A. Revanth Reddy said late Sunday that the state government has ordered a Central Bureau of Investigation (CBI) probe into alleged irregularities in the construction of the Kaleshwaram Lift Irrigation Project, one of India’s largest irrigation ventures.
The announcement came at midnight in the state Assembly after a marathon 10-hour debate on the findings of a Commission of Inquiry headed by former Supreme Court judge Pinaki Chandra Ghose. The commission, which submitted its report on July 31, cited negligence, suppression of facts and financial irregularities in the execution of Medigadda, Annaram and Sundilla barrages, holding the previous Bharat Rashtra Samithi (BRS) government and former chief minister K. Chandrashekhar Rao responsible for poor planning and execution.
The National Dam Safety Authority (NDSA) had earlier pointed to design flaws, weak quality control and inadequate maintenance as causes of damage to the Medigadda barrage.
Reddy said that as multiple central and state agencies, including public sector firms such as WAPCOS and lenders like Power Finance Corporation (PFC), were involved in the project, only a CBI investigation could ensure accountability.
According to the chief minister, the Kaleshwaram Corporation borrowed 854.49 billion rupees ($10.3 billion) for the project, including 277.38 billion from PFC at 11.5% interest and 305.36 billion from other lenders at 12%. Of this, 198.79 billion has been repaid in principal and 299.56 billion in interest, leaving the state with a debt burden of 608.69 billion rupees. An additional 470 billion rupees is required to complete pending works.
Reddy accused the previous BRS regime of “swindling public money” and alleged that Rao shifted the barrage location from Tummidihatti to Medigadda, with changes in technology influenced by then irrigation minister T. Harish Rao.
“The truth must come out, and those responsible for looting public money through Kaleshwaram will be held accountable,” Reddy told the Assembly.
