The YSR Congress Party on Sunday exposed an alleged ₹167 crore scam under the Telugu Desam Party-led coalition government, headed by Chief Minister N Chandrababu Naidu, involving the distribution of sewing machines to women from Backward Classes.
Revealing the alleged irregularities in the BC Welfare Department, YSRCP East Godavari district president and former minister Chelluboina Venugopalakrishna claimed the scheme was a cover for looting public funds in the name of empowering BC women.
According to Venugopalakrishna, the state government had announced a ₹230 crore initiative to train and provide tailoring machines to 1,02,832 women across BC, EWS, and Kapu communities, promising skill development and self-employment.
“Based on the calculations, the government was expected to spend ₹23,000 per beneficiary. However, each sewing machine costs only ₹4,300, and the amount given to outsourced contractors for training is ₹3,000 per person. This means the actual expenditure per beneficiary is just ₹7,300, bringing the total expense to around ₹73 crore,” he explained.
“But the total tender value is ₹230 crore, and only ₹73 crore has been spent on beneficiaries. The remaining ₹167 crore is unaccounted for. Essentially, the government is siphoning off ₹16,000 per beneficiary,” he alleged.
Venugopalakrishna also criticized the scheme's execution, pointing out that while the government promised skill training aligned with IT and AI-based employment, it ended up distributing sewing machines.
“How does giving sewing machines make women IT professionals?” he asked.
“This is not about empowerment — it’s about lining the pockets of Chandrababu’s men under the pretext of women’s welfare,” he alleged.
He further stated that the tendering process was manipulated. Of the 65 companies that participated in the pre-bid process, 56 were arbitrarily disqualified, including several reputed pan-India firms. The lowest bidder, Sri Technologies, was reportedly forced to handle only 5% of the workload, while 95% was awarded to L2 and L3 bidders with higher quotes.
“This manipulation violates central government norms,” he said.
Other irregularities include premature billing. Though training has not yet begun in most districts, the government is planning to release ₹25 crore as mobilization advance to contractors. Additionally, the mandated 360-hour training duration has been cut to just 135 hours, and beneficiaries haven’t received the promised training kits.
Despite the availability of credible training institutions such as CEDAP, APITCO, and DDU-GKY, the project was handed over to the AP BC Cooperative Finance Corporation, opening the door for alleged corruption.
“A retired bureaucrat who played a major role in designing this scheme was also handsomely rewarded,” Venugopalakrishna claimed.
The YSR Congress Party is demanding an immediate investigation into the alleged ₹167 crore tailoring training scam and is calling for justice for the women who were misled by the coalition government’s false promises.
The party also urged the public to remain alert and reject such deceptive schemes driven by political motives.
