Telangana government orders CBI probe into Kaleshwaram project irregularities

Telangana Chief Minister A. Revanth Reddy announced that the alleged irregularities in the construction of the Kaleshwaram Lift Irrigation Project will be handed over to the Central Bureau of Investigation (CBI).

Mr. Reddy announced the Government’s decision in the Assembly on Sunday (August 31, 2025) midnight after a marathon discussion over 10 hours after placing the report by the Commission of Inquiry, headed by former Supreme Court judge Justice Pinaki Chandra Ghose on the table of the House.

The Ghose Commission, constituted by the government to probe allegations of corruption, misuse of funds and lapses in the construction of Medigadda, Annaram and Sundilla barrages, submitted its report on July 31. The State Cabinet approved the report on August 4 and resolved to table it in the Assembly.

EXPLAINED | What is Telangana’s Kaleshwaram project? What is the controversy around it?

The Commission found negligence, suppression of facts and financial irregularities in the execution of the project. It concluded that structural faults occurred in the construction of the three barrages and held the previous BRS government and the then CM K. Chandrashekhar Rao responsible for poor planning and execution.

The NDSA report also attributed the damage to Medigadda barrage to deficiencies in design, quality control and maintenance.

Replying to the debate at the end of the 10-hour discussion that went into late night, the Chief Minister said that as several Central and State agencies, including public sector undertakings like WAPCOS and financial institutions such as Power Finance Corporation (PFC), were involved in the project, the government decided that only a CBI inquiry could ensure a comprehensive investigation.

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During the debate Mr. Reddy accused the previous BRS regime of “swindling public money” through the project. He said the Kaleshwaram Corporation borrowed ₹85,449 crore for the project, including ₹27,738 crore from PFC at 11.5% interest and ₹30,536 crore at 12% interest from other lenders.

“So far, we have repaid ₹19,879 crore towards principal and ₹29,956 crore as interest, amounting to ₹49,835 crore. The State still carries a debt burden of ₹60,869 crore, while an additional ₹47,000 crore is required to complete the remaining works,” the Chief Minister told the House.

He recalled that on October 21, 2020, an engineer lodged a complaint at Mahadevpur police station regarding damage to the Medigadda barrage and police forces were deployed to restrict access to the site. Mr. Reddy also alleged that former CM K. Chandrashekhar Rao shifted the barrage location from Tummidihatti to Medigadda and that the change in technology was influenced by then Irrigation Minister T. Harish Rao.

Also Read | Chief Minister, Harish Rao engage in wordy duels over Kaleshwaram Project, Ghose Commission of Inquiry Report

“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,” Mr. Reddy said justifying the Government’s decision.