Telangana Cabinet Approves CBI Investigation into Power Sector Irregularities

The Telangana Cabinet has given its approval for the Central Bureau of Investigation to examine alleged wrongdoing in power purchases and the Bhadradri and Yadadri thermal power projects, state ministers announced on Monday following the Cabinet meeting at Dr B.R. Ambedkar Telangana Secretariat.

Ministers Ponguleti Srinivas Reddy, Ponnam Prabhakar, Adluri Laxman Kumar, and Vakiti Srihari briefed the media on the Cabinet's decisions.

The inquiry has a lengthy history. In March 2024, the state government established a Commission of Inquiry under the relevant statutory framework to investigate suspected irregularities in power acquisitions and thermal power generation initiatives. Retired Justice L. Narasimha Reddy initially chaired the commission but stepped down in July 2024 following directions from the Supreme Court. Justice Madan B. Lokur subsequently took over leadership of the commission.

The commission delivered its findings—a 114-page report—to the government in October 2024. The Cabinet then sought guidance from the Advocate General on the report's contents during a January 4, 2025 meeting. After reviewing the Advocate General's assessment, the Cabinet determined that a CBI investigation was warranted given the involvement of interstate considerations and Central public sector institutions.

Other Major Cabinet Approvals

Beyond the CBI probe, the Cabinet took action on several fronts. The government will undertake a scientific reassessment of land values across Telangana, particularly in areas where significant gaps exist between official valuations and actual market prices. These revised assessments are scheduled to take effect in the final week of May.

The Cabinet also granted relief provisions for applicants under the HILT policy. Those who filed applications prior to the land value revision can make an initial payment of 10 percent, with the balance due within 90 days at prevailing rates.

Chief Minister A. Revanth Reddy instructed district-in-charge ministers to evaluate agricultural damage from recent unseasonal rainfall and directed officials to roll out immediate assistance programmes for impacted farmers.

The Cabinet transferred operational control of the Nalgonda-Ranga Reddy Milk Producers Cooperative Union Limited to the National Dairy Development Board, which will assume responsibility for processing, marketing, and management of dairy products.

A solar power initiative received approval, with 19 MW of solar generation capacity to be installed at 18 substations across nine districts. The undertaking carries an estimated outlay of Rs 66.50 crore.

Regarding municipal finances, the Cabinet cleared a one-time settlement arrangement for overdue property tax liabilities owed by government offices under GHMC, Cyberabad, and Malkajgiri municipal corporations. Outstanding dues are estimated at Rs 5,864 crore, with the government projecting recovery of approximately Rs 1,686 crore following the waiver of penalties and accrued interest.

The Cabinet sanctioned construction of the Left Flood Flow Canal, originating near Kamepalli in Khammam district, to channel water to small irrigation reservoirs in the locality.

In the skills sector, the Cabinet resolved to integrate all industrial training institutes, advanced training centres, polytechnics, and T-SAT under the Young India Skill University framework, with officials directed to prepare a comprehensive implementation strategy.

Finally, the Cabinet approved the allocation of 42 acres in Aziz Nagar, Moinabad mandal, Rangareddy district, for the development of a contemporary vegetable market facility.