Justice Ghose seeks Kaleshwaram Corp financial details

Hyderabad:The Justice P.C. Ghose commission of inquiry into the various aspects of the Kaleshwaram lift irrigation scheme (KLIS) has sought financial details of the Kaleshwaram Irrigation Project Corporation Ltd., including its balance sheets. The then BRS government set up the entity as a special purpose vehicle (SPV) to raise funds for the irrigation project by way of loans from banks and state-run lending agencies.

On Friday, Justice Ghose questioned in detail Hari Ram, the Engineer-in-chief, Gajwel, on various aspects of the project including funding details. While the official responded to some questions, he evaded direct replies to many including one on who was the brains behind the idea for the Kaleshwaram project.

The official, however, said of the `87,449 crore sanctioned for the corporation, around `64,000 crore were paid to contractors, while another `20,737 crore were repaid towards loan instalments to banks. Justice Ghose wanted to know if the corporation accounts were ever audited and said the official should submit all financial details.

Over the past few days, several other officials of the irrigation department were questioned on the finances for the project, and funds handled by the corporation. Some of them informed the commission that a part of the funds with the entity were turned into fixed deposits and the interest earned was used for payment of salaries to the staff.

Hari Ram informed Justice Ghose that the financials of the corporation were submitted to the government, and that he would submit documents to the commission on Saturday.

To a question on what caused the partial sinking of Block 7 of the Medigadda barrage, Hari Ram responded that the damage was caused by unscientific operation of the barrage gates. To several other questions on the project, the official said instructions were received from the then special chief secretary for irrigation P.K. Joshi, and the then ENC (General) Muralidhar.