Kaleshwaram project boosts Telangana’s rural economy and employment

Kaleshwaram project boosts Telangana’s rural economy and employment Transforms rural landscape by expanding irrigation, boosting agricultural output, improving incomes. Reduces unemployment, curbs migration, accelerates growth in dairy and aquaculture, marking a major leap in rural development By PS Dileep Updated On - 19 June 2025, 06:48 PM Commissioned on June 21, 2019, the world’s largest multi-stage lift irrigation project has significantly expanded irrigation coverage, catalysing growth in agriculture, allied sectors, and rural employment in Telangana. Hyderabad: Once criticised as overambitious and unviable, the Kaleshwaram Lift Irrigation Project (KLIP) emerged as a game-changer for Telangana’s rural economy. Commissioned on June 21, 2019, the world’s largest multi-stage lift irrigation project significantly expanded irrigation coverage, catalysing growth in agriculture, allied sectors, and rural employment. Telangana’s net irrigated area, which stood at 19.5 lakh acres in 2014, crossed 45 lakh acres by 2023, powered by the lifting of nearly 850 TMC of water through an extensive network of pump houses, tunnels, and canals. Key installations at Medigadda, Annaram, Sundilla, Lakshmi, Saraswati, and Parvathi pumping stations delivered water to drought-prone zones in northern and central Telangana. Districts such as Jayashankar Bhupalpally, Siddipet, Karimnagar, and Rajanna Sircilla saw a 60 per cent reduction in borewell dependency. Paddy acreage expanded rapidly, positioning Telangana as one of the top rice suppliers to the Food Corporation of India since 2021. According to a 2023 Telangana State Planning Board report, rural household incomes in KLIP-covered districts rose by 25 per cent. Groundwater levels improved by 1.5 to 2.2 metres. In Karimnagar and Jagtial, horticulture income from crops such as mango, turmeric, and chilli doubled due to assured water supply. The livestock and dairy sectors also witnessed parallel growth. Milk production rose by 38.81 per cent, from 4,207 thousand tonnes in 2014-15 to 5,840 thousand tonnes in 2023-24. Fish production surged as village tanks filled through KLIP-enabled widespread aquaculture. In 2022-23, Telangana’s inland fish production reached 4,24,327 tonnes, while freshwater prawn production was 14,142 tonnes. In 2023-24, inland fish production increased by 3.58 per cent, totaling 4,39,513 tonnes. Freshwater prawn production saw more substantial growth of 16.9 per cent, rising to 16,532 tonnes. While urban districts such as Hyderabad, Rangareddy, and Medchal-Malkajgiri continue to lead in income, rural districts narrowed the gap. Telangana’s per capita income rose from Rs 1.01 lakh in 2012-13 to Rs 3.47 lakh in 2023-24, well above the national average of Rs 1.83 lakh. All 33 districts reported higher PCI than the national average. Unemployment also declined. In rural areas, joblessness fell from 65 per 1,000 people in 2017-18 to 28 in 2022-23. Seasonal migration from northern Telangana dropped by 40 per cent, aided by KLIP-driven employment in agriculture and allied sectors. Despite political criticism, KLIP remains a cornerstone of rural transformation, enabling not just irrigation but also livelihood, dignity, and economic stability across Telangana.