The mishap occurred at around 12.30 PM when a pick-up vehicle was on its way to Betchelling village and fell into the gorge on Rupa-Kalaktang Road, Power Minister T N Thongdok, who represents the area, said over phone.
The minister, who rushed to the area, said while at least 16 people died on the spot, another was critically injured.
"I am in touch with administration and have apprised Chief Minister Kalikho Pul who has assured all possible relief...Let us pray for peace of all departed souls. Condolence to families of the victims," Thongdok said.
Governor Jyoti Prashad Rajkhowa also expressed shock and condoled the bereaved families.
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Neither the DC nor the SP of the district could be contacted due to poor telecommunication network.
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Meanwhile, some of the injured bus persons, who were undergoing treatment at Government General Hospital in Khammam, alleged the mishap occurred due to negligence of the driver, who fled the scene after the mishap.
The bus driver has been identified as Kishore.
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Meanwhile, Telangana Chief Minister K Chandrasekhar Rao expressed deep shock over the incident and extended condolences to the bereaved family members.
According to a release from the CMO, Rao directed officials to ensure quality treatment for the injured.