Kaleshwaram Project: Leaked Report Holds KCR Accountable for Massive Irregularities
4 Aug, 2025 13:28 IST|Sakshi Post
PC Ghose Commission holds KCR “directly and vicariously accountable” for irregularities
Flags massive cost escalations, flawed designs, and widespread procedural lapses
Accuses project authorities and the executing agency of acting with “concerted malicious intention”
The PC Ghose Commission of Inquiry has held former Chief Minister K. Chandrasekhar Rao “directly and vicariously accountable” for irregularities in the planning, execution, completion, and operation and maintenance (O&M) of the Kaleshwaram Lift Irrigation Scheme (KLIS). This was revealed in a study summarizing the Commission’s report.
The report was allegedly leaked to the media, even as the Telangana Cabinet was scheduled to discuss the matter on Monday (August 4).
PC Ghose Commission Report: Key Findings
The Kaleshwaram Lift Irrigation Project (KLIP), once touted as a game-changer for Telangana’s agriculture and water security, became embroiled in a major political and financial controversy after the Medigadda barrage, a key structure in the project, developed severe structural cracks — raising serious concerns about its quality and design.
As allegations of massive cost overruns and irregularities in contract awards surfaced, the Telangana government, under Chief Minister Revanth Reddy, constituted the PC Ghose Commission to investigate the alleged corruption and procedural violations.
The Commission examined the role of BRS supremo and former CM KCR, then-Finance Minister Eatala Rajender (now with the BJP), and then-Irrigation Minister T. Harish Rao.
According to the leaked report, the Commission flagged massive cost escalations, flawed designs, and widespread procedural lapses throughout the project’s construction.
The project was described as a "scheme marked by rampant and brazen procedural and financial irregularities."
The Commission reportedly found that the project was initiated without Cabinet approval and concluded that KCR had taken unilateral decisions regarding the Medigadda, Annaram, and Sundilla barrages.
The summary report established systemic procedural failures in KLIS, named those responsible, and outlined a possible future course of action.
The severest legal action has reportedly been recommended against six irrigation engineers for deliberately misleading the Commission and giving false depositions.
The report stated that the then Engineer-in-Chief, C. Muralidhar Rao, who was recently detained by the Anti-Corruption Bureau (ACB), misrepresented facts to the Central Water Commission.
Further, Harish Rao was accused of “intentionally ignoring the report of the Expert Committee.”
The report also noted that Eatala Rajender demonstrated a “lack of commitment and integrity in safeguarding the financial and economic health of the newly formed State,” as he pleaded ignorance of crucial financial decisions related to the project.
KCR was held “directly and vicariously accountable for the irregularities and illegalities in the planning, construction, and maintenance of the three barrages.” The report states that his minute involvement and directives were both the cause and consequence of the irregularities that ultimately led to structural failures in the barrages.
One of the crucial findings related to KCR’s directive to continuously impound water in the barrages to full capacity for lifting through pump houses, despite barrages being designed as low-head diversion structures and not storage systems. This, the Commission stated, was a “major cause for distress,” linking it directly to the sinking of piers at the Medigadda barrage.”
The Commission termed the BRS government’s justification for shifting the barrage site as misleading. “The claim of no availability of water at Tummidi Hatti as the reason for shifting the barrage to Medigadda does not appear to be sincere or honest,” the report stated.
The study further concluded that the Commission explicitly accused project authorities and the executing agency of collusion, acting with “concerted malicious intention” to derive undue benefit and make unlawful gains from the enormous public expenditure on the Medigadda Barrage.
The report emphasized that the Kaleshwaram project, originally envisioned as a lifeline for Telangana, ended up as a colossal waste of public money due to governance failure, poor planning, technical lapses, and lack of financial discipline, primarily driven by individual decisions and political interference.
The P.C. Ghose Commission submitted a three-volume, 650-page report to the Telangana government on July 31. A summary of the report was reportedly prepared over the weekend.
