Give Back Funds Unspent by BRS, Centre Tells TG

 Hyderabad: The Union ministry of Jal Shakti has demanded that the Telangana government return Rs 36.34 crore released to the state during the then BRS regime for specific irrigation projects, along with seven per cent interest, as the funds were diverted to purposes other than what they were released for.

Taken together with the interest, the Jal Shakti Ministry said the principal amount of Rs 36.34 crore, along with Rs 17.88 crore in interest accrued till January 2026, must be paid back by Telangana to the Centre, with the amount coming to Rs 54.22 crore till January of this year. In a letter dated July 21, 2026, to the engineer-in-chief of the irrigation department, the ministry further said, “The final interest amount of the Central Assistance of Rs 36.34 crore may be calculated accordingly at the time of submission of the recovery proposal by Government of Telangana.”

The funds were released under the PMSKY-CADWM scheme for 11 projects – the Indiramma flood flow canal, J Chokka Rao Devadula Project, Rajiv Bhima Lift Irrigation Scheme, SPSP-II, Peddavagu in Nilwai village, Ralivagu, Mattadivagu, Komuram Bheem, Palemvagu, Peddavagu near Jagganadhapur village, and Gollavagu projects. 

The then state government had said that these projects, designed to irrigate 13,07,165 acres, will require Rs 1,525.64 crore, of which the Centre had agreed to provide Rs 722.61 crore. As part of the Central contribution, Rs 10.22 crore was released in 2017-18, Rs 26.12 crore in 2018-19. However, the ministry has now said the funds released were used for other purposes, and has now sought the return of the principal along with interest.

Though in 2023, the then BRS government requested the ministry to consider allowing the use of the funds under the Pradhan Mantri Krishi Sichayi Yojana for Devadula, Rajiv Bhima, SRSP-II, Peddavagu (Jagganadhapur), the ministry has rejected this proposal and has now said the released money must be returned.