Launched by K. Chandrashekar Rao (KCR) in 2019 as one of the largest multi-stage lift irrigation schemes in the country, Kaleshwaram Lift Irrigation Project is facing major controversy. The project has been under a close scrutiny as the ruling Congress government in Telangana has alleged financial irregularities and lack of transparency in the implementation of the project.
The allegations have been rebutted by the BRS, which claims that the Congress is unnecessarily raising the issue as the current government is displaying “criminal negligence” toward irrigation infrastructure and showing an “anti-farmer attitude.”
Congress Alleges Lack of Transparency in KLIP Under BRS Rule
Telangana Chief Minister A. Revanth Reddy has made serious allegations against the previous Bharat Rashtra Samithi (BRS) government, claiming that during its 10-year tenure from 2014 to 2023, the state Cabinet never properly discussed the Kaleshwaram Lift Irrigation Project (KLIP). According to Revanth Reddy, of the 96 Cabinet meetings held during the BRS regime, the only times KLIP came up were in the context of cost revisions.
“The then Cabinets never deliberated on project details, locations, or scope, except when it came to revising project costs,” the Chief Minister said at a press meet at the Secretariat. He further stated that the Congress-led government would submit comprehensive documentation to the Justice P.C. Ghose Commission of Inquiry, which is investigating the Kaleshwaram project, by June 30.
The inquiry was prompted by concerns raised by former BRS ministers Etala Rajender and T. Harish Rao regarding Cabinet approvals. However, Revanth declined to elaborate further, saying his comments might be perceived as attempting to influence the Commission and give BRS leaders legal grounds to approach the courts.
BRS Defends KLIP; KCR Appears Before Inquiry Commission
Former Chief Minister and BRS President K. Chandrashekar Rao (KCR), who inaugurated KLIP in 2019 as one of the largest multi-stage lift irrigation schemes in the country, appeared before the Justice P.C. Ghose Commission on June 11, 2025. The inquiry, held at BRKR Bhavan in Hyderabad, lasted about 50 minutes and focused on alleged design flaws, structural failures, and massive cost escalations.
KLIP was designed to irrigate over 37 lakh acres across 21 districts using a canal network of more than 1,800 km, divided into seven links and 28 packages. While officially declared completed, much of the ayacut development remains unfinished.
In response to the Congress government’s criticism, KCR plans to convene a meeting with senior BRS leaders to counter what he calls a conspiracy to “defame” KLIP. The party alleges that the current government is displaying “criminal negligence” toward irrigation infrastructure and showing an “anti-farmer attitude.”
Mounting Costs and Dismal Returns
Despite a reported expenditure of around ₹94,000 crore mostly borrowed from commercial banks at high interest rates the project has not delivered proportionate benefits. Irrigation Minister N Uttam Kumar Reddy criticized the BRS government, stating that instead of building a robust irrigation network, they focused on constructing barrages, two of which have collapsed, yielding minimal results for farmers.
The financial sustainability of the project continues to be a major point of contention. Critics argue that the returns have not matched the massive investment and that the state is burdened by long-term debt incurred for funding KLIP.
CAG Audit: Project Was Economically Unviable From the Start
Adding weight to the controversy, the Comptroller and Auditor General (CAG) in its 2024 performance audit labeled the Kaleshwaram Lift Irrigation Scheme as “economically unviable.” The report, tabled in the Telangana Legislative Assembly, criticized the Detailed Project Report (DPR) for inflating the benefit-cost ratio by underestimating expenses and overstating expected returns.
The audit noted that even with an understated cost of ₹81,911.01 crore, the benefit-cost ratio was only 0.75. With the likely final cost reaching ₹1,47,427.41 crore, the ratio falls drastically to 0.52 meaning every ₹1 spent yields only ₹0.52 in return. This signals that the project was fundamentally flawed in its economic projections.
Politics, Allegations, and the Future of KLIP
The Kaleshwaram Lift Irrigation Project, once hailed as a transformative irrigation scheme, is now at the center of a fierce political and financial battle between the Congress and BRS. While the Congress accuses the previous government of opacity, structural failures, and financial mismanagement, the BRS claims that the new government is using the issue to divert attention from its own shortcomings.
With the Justice P.C. Ghose Commission’s inquiry underway and the CAG’s findings casting serious doubts on the project’s viability, the future of KLIP and its impact on Telangana’s farmers remains uncertain. The coming months will be crucial in determining whether the project can be salvaged or becomes a costly cautionary tale in public infrastructure planning.
