Explainer: How Telangana’s dream irrigation project turned into a Rs 1 lakh-crore scandal

Hyderabad: The Telangana government has ordered a CBI inquiry into alleged corruption in the Kaleshwaram Lift Irrigation Scheme (KLIS).

The decision follows the tabling and discussion of the Justice (retd) PC Ghose Commission Report in the Assembly on Sunday.

What did the commission state?

Once projected as the world’s largest lift irrigation project and Telangana’s lifeline, Kaleshwaram is now under fire for procedural violations, financial mismanagement and technical failures.

The Commission has fixed accountability on former CM K. Chandrashekar Rao, top officials, and contractors.

The dream project

The project was conceived to irrigate 37 lakh acres by lifting Godavari River water through a network of barrages, reservoirs, and canals.

The foundation stone laid in 2016, inaugurated in 2019 with the promise of transforming Telangana’s agriculture.

Who built the Barrages?

Medigadda: L&T–PES JV Constructions

Annaram: Afcons Vijeta PES JV

Sundilla: Navayuga Engineering Company Ltd

Commission’s findings

1. Procedural Lapses

Cabinet approval was bypassed for key changes.

Former CM KCR personally interfered in the execution, sidelining technical bodies.

2. Technical Faults

Shift from Tummidihatti to the Medigadda site against expert advice.

No geotechnical studies before construction.

Barrages lacked safety and maintenance protocols.

3. Financial Irregularities

Loans worth Rs 87,000 crore raised by the Kaleshwaram Irrigation Project Corporation (KIPCL).

No revenue model despite promises of user charges.

Contract changes from a turnkey to a lump-sum basis enabled inflated billing.

4. Administrative Apathy

Senior officials remained silent spectators.

Expert warnings were ignored or suppressed.

KIPCL under scanner

The Kaleshwaram Irrigation Project Corporation Ltd (KIPCL) acted largely as a loan-raising body.

Released bank guarantees on false completion certificates, termed “wrong and illegal.”

Extended contractor deadlines without imposing penalties.

Failed to monitor or repair damaged works.

Political accountability fixed on KCR

The Commission holds former CM KCR directly responsible, from conceptualisation to execution.

His “minute involvement and directions” are said to have contributed to the barrages’ distress.

The decision to construct barrages was described as a “sole and individual choice” of KCR.

His insistence on Medigadda, despite objections, was a “pre-determined decision.”

Findings against bureaucrats and engineers

Former Chief Secretary SK Joshi, and Engineers-in-Chief C Muralidhar and B Hari Ram accused of suppressing expert reports.

Gave unjustified relaxations in provisions such as dewatering and coffer dam costs, benefiting contractors.

Political fallout

CM Revanth Reddy called Kaleshwaram “a man-made disaster” and tabled the report in the Assembly.

BRS dismissed the report as politically motivated.

Opposition demands action on “the biggest irrigation scam in India.”

Legal battle

KCR and Harish Rao moved the Telangana High Court, citing a violation of inquiry procedures.

The High Court refused to stay the report, insisting it must first be debated in the Assembly.

Overall observation

The Commission concluded that Kaleshwaram was marred by irregularities, illegalities, and misuse of public funds. It called the project a “malicious act” that imposed a massive financial burden on Telangana.

CBI Probe ordered: State hands case to CBI after Ghose Report

Project Cost Escalation: From Rs 38,500 crore to nearly Rs 1 lakh crore.

Structural Failures: Medigadda piers sank in 2023; Annaram and Sundilla also cracked.

KIPCL Role: Reduced to a loan-raiser, issued false completion certificates.

Political Overreach: KCR held solely responsible for decisions and lapses.

Ignored Expertise: Alternatives and expert warnings disregarded.

Financial Mismanagement: False certifications, undue relaxations, and unchecked borrowing.