Justice Ghose Commission Questions Finance Official on Kaleshwaram Project
In Hyderabad, the Justice Ghose Commission, which is investigating the Kaleshwaram project, questioned Ramakrishna Rao, the state’s Special Chief Secretary to the Finance Department, for nearly two hours. The focus of the inquiry was on how funds were mobilized and spent on the multi-crore project.
Ramakrishna Rao claimed that the Finance Department had followed proper norms when securing funds from various financial institutions. However, when asked about alleged irregularities in payments to contractors, he stated that a transparent mechanism had been implemented.
Sources revealed that the Commission raised critical questions about the creation of the Kaleshwaram Corporation, loans, project designs, budget allocations, and interest payments. The Commission specifically sought information about how the corporation raised funds. Rao explained that the funds came from budget allocations and loans.
When asked if the project would generate revenue, the Finance Secretary responded that it could by using available water for industrial purposes. The Commission, however, expressed concerns about financial issues based on affidavits submitted by some officials and findings from the Comptroller and Auditor General (CAG) report.
The Commission also questioned whether proper regulations had been followed in the project’s designs. Rao clarified that design responsibility rested with the government. He denied claims that regulations were bypassed during the approval process. He further stated that there were no meetings or records from a core committee regarding the project’s construction.
Ramakrishna Rao said he was unaware of any claims that the project was rushed or that regulations were ignored. He also admitted he did not have knowledge of policies related to the Kaleshwaram project being tabled in the Assembly.
The Commission presented records showing that funds were released without adhering to proper rules. When asked about the lack of proper financial documentation, Rao explained that the corporation had secured loans for the project with a government guarantee.
In a key revelation, the official disclosed that during the financial year 2024-25, the government paid Rs 6,519 crore in interest on the principal loan amount. He added that the government was paying an interest rate of 9 to 10.5 percent on these loans.
The inquiry highlights several financial and procedural concerns surrounding the Kaleshwaram project, with further investigations likely to probe deeper into these issues.
