Hyderabad: The Telangana government has initiated a Central Bureau of Investigation (CBI) inquiry into the Kaleshwaram project. Previously, a commission led by former Supreme Court judge Justice Pinaki Chandra Ghosh was set up to look into alleged mismanagement, misuse of funds, and corruption involved in the construction of the Medigadda, Annaram, and Sundilla barrages.
The Ghose Commission submitted its findings to the government on July 31, 2025. The state cabinet approved the report on August 4, 2025, deciding to present it in the assembly for a detailed discussion. The commission uncovered significant issues, including negligence, concealment of facts, and financial mismanagement in the barrage constructions. It also highlighted the previous BRS government’s inadequate planning for the project.
The National Dam Safety Authority (NDSA) reported damage to the Medigadda barrage, attributing it to poor planning, design flaws, and quality control failures. Both the NDSA and Ghose Commission reports stressed the need for a thorough investigation.
The project involves various inter-state entities and departments from both Central and State Governments. With Central Public Sector Undertakings like WAPCOS and financial institutions such as PFC and REC involved, the government decided a CBI investigation was necessary.
During an assembly debate on the Ghose Commission’s findings, Chief Minister A Revanth Reddy revealed that Kaleshwaram Corporation had borrowed Rs. 85,449 crores for the project. The previous BRS government took loans of Rs. 27,738 crores and Rs. 30,536 crores at 11.5% and 12% interest, respectively.
The CM stated Rs. 19,879 crores were repaid as the principal amount, with Rs. 29,956 crores paid as interest, totaling Rs. 49,835 crores. An additional Rs. 60,869 crores remains outstanding, and Rs. 47,000 crores are needed to finish remaining work.
The CM mentioned that on October 21, 2020, an engineer reported damage to the barrage at Mahadevpur police station, which the then Chief Minister K Chandrashekhar Rao was informed about. Security was tightened around Medigadda, restricting access.
The current CM accused former Chief Minister KCR of relocating the barrage from Tummidihatti to Medigadda due to then Irrigation Minister T Harish Rao’s influence, alleging misuse of public funds by the BRS administration. The government has committed to a detailed investigation following these allegations.
