r/Telangana • u/z333reddit • 12h ago
Discussion 🎤 Kaleshwaram Project is a Scam
Few weeks back nenu kaleshwaram project gurinchi friends tho discuss chesthu unnanu aa time lo nenu idi pedda achivement anukunna tarvata ardam ayyaindi enti ante e project oka pedda scam Enduku ante idi spend chese money valla farmers ki almost negligence benifit vasthundi. Idi Megha engineering and power companies kosam chesina project
Please take a look at the post inka mi thoughts kuda share cheskondi.
The Kaleshwaram Lift Irrigation Project (KLIP) has faced intense scrutiny due to its exponentially escalating capital costs and unusual financing models. Originally estimated at ₹81,911 crore, the projected cost surged past ₹1.47 lakh crore. Instead of relying strictly on regular state budgetary allocations, over 64% of the expenditure was met through off-budget borrowings raised by a special purpose vehicle (KIPCL). Much of this debt utilized credit lines from power and infrastructure finance entities like the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). This approach placed massive debt-servicing burdens—projected at ₹1.41 lakh crore—directly onto the state’s finances without a clear repayment plan.
The operational demands of the project, particularly its electricity consumption, are fiscally staggering. As a massive multi-stage lift scheme, running the pumps requires an enormous amount of power. According to the Comptroller and Auditor General (CAG) performance audit, the annual electricity bill alone is projected at ₹10,374 crore. When combined with routine maintenance, the total yearly operational expenses exceed ₹10,647 crore, which translates to a recurring burden of over ₹46,000 per acre every single year.
Despite this colossal investment, the actual agricultural benefits delivered to farmers remain minimal. While the project was heavily promoted as a way to provide new irrigation to 18.26 lakh acres, official audits revealed that as of March 2022, the actual newly created command area was just 40,888 acres. The CAG calculated the true Benefit-Cost Ratio (BCR) at a dismal 0.52—meaning the project generates only 52 paise of economic return for every single rupee spent, rendering it economically unviable for agriculture.
The massive gap between public expenditure and agricultural outcomes has led oversight bodies and critics to conclude that the project primarily enriched engineering contractors rather than the farming community. Audits flagged thousands of crores in undue benefits to contractors, including bloated equipment estimates and unapproved price escalations. Combined with severe structural failures, such as the sinking piers at the Medigadda Barrage, KLIP stands as an infrastructure-heavy endeavor that severely encumbered public finances with questionable agricultural utility.
