Kaleshwaram Lift Irrigation Project: Legal, Political Storm Engulfs Telangana

Telangana’s political and administrative corridors are in turmoil as the Kaleshwaram Lift Irrigation Project (KLIP)—once hailed as the jewel of the newly formed state—has become the epicentre of the state’s most pressing controversy. 

In the latest development, former Chief Minister K Chandrashekhar Rao (KCR) and ex-irrigation minister T Harish Rao have moved the Telangana High Court to challenge the report prepared by Justice (Retd.) Pinaki Chandra Ghose Commission, describing it as a “politically motivated witch-hunt” orchestrated by the current Congress government led by Revanth Reddy. 

The petition seeks to quash the 665-page report, arguing that the Commission lacked jurisdiction, ignored representations made by KCR and Harish Rao and produced findings that are legally invalid. The High Court registry is currently reviewing the case.

Appointed on March 14, 2024, hardly four months after the Congress government came to power, the Ghose Commission took on the task of investigating alleged irregularities in KLIP’s planning, approvals and execution. 

Over a 16-month period, the Commission examined more than 110 stakeholders, including former ministers, IAS officers, engineers, contractors, journalists and civil society groups. Key figures—including KCR, Harish Rao and former finance minister Etela Rajender—were extensively questioned before the report was finalised, submitted to the government on July 31, 2025 and later approved by the state Cabinet.

Chief Minister Revanth Reddy has announced plans to table the report in the Legislative Assembly in the coming days, promising a full debate to allow all political parties and former ministers to express their views before any government action.

The Ghose report has sent shockwaves across Telangana, exposing KLIP as a Rs 1.45 lakh crore project riddled with ignored warnings, faked clearances, cost overruns and structural failures. The report references KCR 32 times, Harish Rao 19 times and Rajender five times. It highlights serious procedural lapses, the suppression of expert opinions and allegations that Cabinet sub-committees fabricated approvals to push the project forward even before the Detailed Project Report (DPR) was finalised.

Technical assessments confirm the gravity of the crisis. In October 2023, a pillar of the Medigadda Barrage—the linchpin of KLIP—collapsed, exposing foundational flaws in all three major barrages—Medigadda, Annaram and Sundilla. The National Dam Safety Authority (NDSA) reported structural distress stemming from deficient geotechnical investigations, design deficiencies, inadequate modelling and poor quality control. Experts concluded that the collapse was preventable and the result of man-made errors.

Financial consequences compound the crisis. A Comptroller and Auditor General (CAG) performance audit indicates Telangana faces a repayment burden of Rs 1.41 lakh crore over the next 14 years, with annual interest payments averaging Rs 10,000 crore. Of the Rs 87,449 crore borrowed during the BRS era, over Rs 22,500 crore has already been paid in interest. Revised calculations suggest energy costs for operating KLIP could exceed Rs 9,400 crore annually, more than double the original DPR estimate, further straining the state’s finances.

The report also underscores governance failures—the BRS government allegedly greenlit construction before DPR finalisation, disregarded mandatory cabinet approvals and bypassed procedural rigour. The accusation against former finance minister Rajender is that he presented false information, claiming Cabinet approval for barrage works that he had not obtained.

The electoral promise to transform drought-prone northern Telangana into a green revolution zone began as a source of hope but has now turned into a sobering reality. Tangella Siva Prasad Reddy, a Hyderabad-based social activist who campaigned for a thorough and independent probe into the scandal behind the project from its inception, points out that the Justice Ghose Commission has unequivocally stated that corruption began at the highest level after scrutinising over 110 individuals for 15 months.

Political fallout is intensifying. For the ruling Congress, the report is a vindication of its anti-corruption stance and a potential lever ahead of upcoming local body elections. KCR’s absence from the Assembly since his electoral defeat in 2023 has fuelled speculation about potential legal consequences, while Harish Rao continues to defend the party’s legacy. BRS leaders, in turn, accuse the Congress of deliberately sabotaging water release schedules to portray KLIP as dysfunctional, warning of potential mass farmer protests if the issue persists. Former MLA Peddi Sudarshan Reddy even claimed that despite 1.45 lakh cusecs of water at Medigadda, the motors remain off, alleging political sabotage rather than technical delay.

Social activists and analysts emphasise that the KLIP saga is more than a political squabble. “Whether Congress can truly clean the muck or simply capitalise on it remains to be seen. It remains to be seen whether KCR’s legacy can withstand this assault. But for the people of Telangana—especially its farmers—the dispute is no longer about politics. “It’s about water, debt and the dream of a drought-proof future that now lies submerged under silt, suspicion and scandal,” observes Siva Prasad Reddy.

“For the people of Telangana, especially its farmers, the dispute is now about water, debt and a drought-proof future that has been compromised.” Environmentalist BV Subba Rao also warns that original DPR assumptions regarding electricity usage were overly optimistic and actual energy costs are set to spiral, further compounding the crisis.

KLIP, intended to transform northern Telangana into a green revolution zone, now serves as a stark cautionary tale of what happens when political ambition, engineering hubris and institutional bypass collide. With structural flaws, massive debt and political turbulence converging, the project threatens not just the state’s finances but also public trust, making it the most urgent and contentious issue currently rocking Telangana.