Hyderabad, 1 Sep

Telangana Chief Minister A Revanth Reddy in the wee hours of Monday, announced a CBI inquiry into the alleged irregularities in the Kaleshwaram project built during the previous BRS regime.

Speaking in the Legislative Assembly at the end of a short discussion on the judicial commission's report on Kaleshwaram project, which concluded at around 2am, Reddy said it is appropriate to hand over the probe to CBI as inter-state issues, different central and state government departments and agencies are involved in the project.

Central government organisations and also financial institutions are involved in project design, construction and financing, he said.

"Therefore, the House is taking the decision to hand over the investigation of this case to the CBI with the permission of the Speaker. Because there are many issues involved in this and also matters fit for inquiry, our government is issuing orders for CBI probe," he said.

The reports of the National Dam Safety Authority (NDSA) and the judicial commission have underscored the need for an in-depth and more comprehensive probe into various issues concerning the project, he said.

The judicial commission in its report has identified several defects and irregularities which are fit for taking criminal action, he said.

As per the NDSA report, the defects in planning, design and quality control have been found to be the reasons for the failure of the Medigadda barrage of the Kaleshwaram project, the CM said.

He said the government has so far paid Rs 49,835 crore towards payment of principal and interest on the loan taken for Kaleshwaram project, with a total interest of Rs 29,956 crore and the principal amount paid was Rs 19,879 crore.

He said he pursued with the Central government and got a debt restructure of over 26,000 crore.

The loans for the project were obtained at exorbitant interest rates by the BRS government, he said.

During the debate, Reddy alleged that, to loot Telangana’s public funds, the previous BRS government changed the location of the barrage from Thummidi Hatti to Medigadda, altering project definitions despite a report against it by a group of retired engineers.

On Sunday, the government tabled the report of the judicial commission, headed by former Supreme Court judge Justice PC Ghose, in the assembly.

The Commission suggested that it is for the state government to take action against former chief minister K Chandrasekhar Rao as per law.

Earlier, the BRS staged a walkout from the assembly alleging that the party was not given enough time to voice their version on the report of the judicial commission.

"While the then Minister for Irrigation gave instructions at random and the Minister for Finance & Planning conducted himself apathetically towards the finance and economic health of the State, it is the then Chief Minister who can be directly and also vicariously made accountable for the irregularities and illegalities in planning, construction, completion, operation and maintenance of the three barrages," the commission report said.

"However, it is for the Government to examine and take action against them, if any, in accordance with the law," the report added.

The Commission, headed by former Supreme Court judge Justice PC Ghose, submitted its report to the government on  31 July.

The Assembly took up a short discussion on the Commission’s report on Sunday.

The Kaleshwaram Lift Irrigation Project is a multi-purpose project on the Godavari River in Bhupalpally district. Damage to the barrages, built during the previous BRS regime, became a major issue in the 2023 Assembly election.