The Special Chief Secretary of the Finance Department, Ramakrishna Rao, appeared before the Kaleshwaram Commission chaired by Justice PC Ghose to answer questions regarding the Kaleshwaram Project.
The interrogation centred around affidavits submitted by Ramakrishna Rao and the CAG report with emphasis on loans, project designs and budget allocations.
The commission asked questions about the funding of the Kaleshwaram Corporation, revenue generation and adherence to regulations in the project’s design.
Ramakrishna said that the government was responsible for the project’s designs and admitted that no core committee records existed on the project’s execution.
Justice PC Ghose said that the project appeared to have been executed hastily without adhering to regulations. The commission also questioned the project’s objectives and how it planned to generate revenue. Ramakrishna clarified that the project’s goal was to sell water to industries.
The commission said that key policies regarding the project were not presented in the Assembly. It noted that business rules were violated during the release of funds, and financial records were not maintained properly. Ramakrishna revealed that loans were secured with government guarantees and were being repaid at interest rates between 9 and 10.5 per cent.
