Ghose Committee’s allegations of financial irregularity under scanner – Part 1

The Justice PC Ghose Commission accused KLIP officials of irregularities in awarding contracts and bypassing protocol, but the State defended the project, stating assets worth over ₹80,000 crore are operational

Hyderabad: The Justice PC Ghose Commission has accused the then Kaleshwaram project officials and engineers of favouring companies like L&T, Afcons and Navayuga through irregular designs and violations of protocol. The report alleged misuse of bank guarantees and procedural lapses, causing serious financial loss to the State.

However, the allegations are misleading as assets worth Rs 80,377 crore, including pump houses, reservoirs, and canals, are fully operational and being utilised by the present Congress government as well.

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Against the initial estimate of Rs 81,911 crore, the previous BRS government spent Rs 93,872 crore, which includes Rs 10,146 crore spent under Pranahitha-Chevella Sujala Sravanthi before 2016. After deducting the costs of Medigadda Barrage (Rs 3,348 crore), the remaining infrastructure is in productive use.

Issue of Cabinet approval

The Justice PC Ghose Commission’s report on the Kaleshwaram Lift Irrigation Project (KLIP) has stirred controversy by stating that key decisions, including the construction of the three barrages, were made without formal Cabinet approval. The Commission questioned the urgency and legality of issuing orders bypassing the Cabinet process.

* It is an established government practice wherein executive orders are often issued first and later ratified by the Cabinet. This was followed in the KLIP case as well, with the Cabinet endorsing decisions on at least five occasions.

* Chief Minister A Revanth Reddy also followed a similar procedure where an executive order for the Kodangal-Narayapet Lift Irrigation Project was issued without prior Cabinet approval and was ratified later.

Issue of Medigadda site

The Justice PC Ghose Commission observed that a 2015 expert committee report, formed under GO No. 28, suggested Vemanapalli, but the government concealed it and opted for Medigadda instead. It claimed that neither former Chief Minister K Chandrashekhar Rao nor T Harish Rao clarified whether they considered this report or not.

* The retired engineers who were part of the 2015 committee clarified that their 18-page report explicitly recommended Medigadda.

* Page 7 of the report stated a barrage at 105 FRL at Medigadda was viable without causing submergence.

* Page 8 of the report noted that direct pumping from Medigadda to Mid-Manair was unfeasible due to coal mines, forest areas, and NTPC facilities en route. Hence, routing water via Yellampally through the Godavari riverbed was suggested.

* The government had acted on these inputs, and an affidavit explaining the same was submitted to the Commission. It is unclear why the Commission overlooked this documented evidence.