Kaleshwaram probe: Less about dams, more about political games?

When Telangana Chief Minister A Revanth Reddy announced on the Assembly floor last Sunday that his government would hand over the probe into alleged irregularities in the Rs 1.10 lakh crore Kaleshwaram Lift Irrigation Project -- built during the Bharat Rashtra Samithi regime -- to the Central Bureau of Investigation (CBI), the decision took both ruling party MLAs and opposition BRS members by surprise. The announcement drew immediate criticism, with opponents questioning how Revanth Reddy could seek the help of the same CBI that his party leader Rahul Gandhi has consistently accused of serving the interests of the Bharatiya Janata Party.

Telangana BJP leaders had long demanded CBI investigations into multiple issues, including the Kaleshwaram project and alleged phone-tapping cases. Revanth Reddy’s decision appears to meet at least one of these opposition demands, though it has also sparked intense political speculation.

Political circles are abuzz with theories about Revanth Reddy’s motivations. Some analysts suggest he has inadvertently handed the BJP a golden opportunity to strike a ‘strategic understanding’ with the BRS before the next assembly elections as the CBI probe axe hangs on former Chief Minister K Chandrashekar Rao. The BJP has been successfully striking alliances with regional parties like TDP in Andhra Pradesh, AIADMK in Tamil Nadu, and JDS in Karnataka when unable to establish its own presence.

However, Congress insiders argue that Revanth Reddy has made a calculated move to corner the BJP. The key question now centres on whether the Centre will approve the probe. If the BJP-led union government refuses, it risks creating the perception of a secret BRS-BJP alliance, potentially strengthening Congress’s campaign narrative. Conversely, approving the investigation could complicate the BJP’s relationship with the BRS.

Under established procedure, when a state government requests a CBI investigation, it must issue a notification under Section 6 of the Delhi Special Police Establishment Act, followed by Central consent under Section 5. The Telangana government has already recommended the CBI inquiry based on the National Dam Safety Authority’s report and formally written to the Union Home Ministry while issuing the consent under Section 6 of the Delhi Special Police Establishment Act.

The Congress government’s decision followed the submission of the Justice PC Ghose Commission report a few days ago.

The judicial commission’s investigation into the Kaleshwaram project’s three barrages at Medigadda, Sundilla, and Annaram revealed damning conclusions. The probe was initiated after the partial collapse of the Medigadda barrage just before the 2023 assembly elections prompted the incoming Congress government to order the investigation.

The commission held former Chief Minister K Chandrashekar Rao “directly and vicariously accountable for irregularities and illegalities in planning, construction, completion, operation and maintenance of the three barrages.” The report characterised KCR’s involvement as the primary cause of irregularities and subsequent structural distress.

Significantly, the commission found “rank irregularity from the conceptualisation stage of the Kaleshwaram project until administrative approvals were issued on March 1, 2016.” The report emphasised that decisions were made by individuals rather than through proper governmental processes, with the then-Chief Minister “predetermined and bent upon constructing a barrage at Medigadda at his free choice.”

The commission documented how project costs spiralled dramatically. Initially conceived at Rs 38,500 crore, expenses escalated to Rs 71,436 crore and later reached over Rs 1,10,248.48 crore by March 2022 through revised administrative approvals.

The Kaleshwaram Irrigation Project Corporation Limited (KIPCL) secured loans totalling Rs 87,449.15 crore with state government guarantees. As of September 2024, Rs 29,737.06 crore had been paid toward principal and interest, leaving a balance of Rs 64,212.78 crore plus approximately Rs 41,638 crore in additional payable interest, a massive burden on the state budget.

The commission also found that former Finance Minister Etela Rajender provided false information to the Cabinet
and recommended action against officials who gave false evidence during
proceedings.

Interestingly, the CBI probe announcement triggered internal turmoil within the opposition BRS. Comments made by MLC Kavitha against her cousins, former Irrigation Minister T Harish Rao and former Rajya Sabha member Joginapally Santosh Rao, in the wake of the CBI probe into the Kaleshwaram project led to her suspension from the party founded by her father, K. Chandrashekar Rao. She subsequently resigned from the BRS.

While the state government has made a one-time relaxation allowing CBI jurisdiction for the Kaleshwaram probe, the controversial order barring CBI from exercising jurisdiction in Telangana remains in force for all other cases.

As political observers watch closely, the Union Home Ministry’s response will be crucial. Rejecting the probe could strengthen perceptions of BRS-BJP collusion, while approval might force an uncomfortable investigation. For the BJP government, this decision carries significant political implications that extend beyond Telangana’s borders.

The Kaleshwaram saga, initially intended as Telangana’s lifeline, appears to have now become a symbol of governance failures and financial irregularities. Whether the CBI probe will deliver accountability or become another political chess piece remains to be seen.