₹768 crore compensation paid to 6,206 Veligonda Project-displaced families

Andhra Pradesh Chief Minister N. Chandrababu Naidu announced on Saturday, August 22, 2026, that Phase-I of the Veligonda irrigation and water supply project will be officially inaugurated on August 31. During a visit to his camp office, he presented a cheque for ₹250 crore to families affected by the displacement caused by the project, marking the third instalment of compensation. The announcement came amid discussions on the state’s water management strategies, particularly in light of recent drought conditions. The Veligonda Phase-I project is set to provide irrigation benefits to approximately 1.19 lakh acres of land spread across Prakasam, Nellore, Kadapa, and Markapuram districts. It will also ensure potable water access for around four lakh residents. According to officials, the project's implementation over the past two years cost ₹2,250 crore, with the chief minister expressing satisfaction at its successful completion. He emphasized that the initiative represents a long-held vision that has finally materialized after more than three decades. Mr. Naidu reflected on the historical significance of the project, noting that he had initiated the groundwork in 1996. He highlighted the importance of such large-scale infrastructure projects, stating that they were made possible by the foundational efforts of earlier leaders, including N.T. Rama Rao. The chief minister also addressed current challenges related to water availability, citing the impact of El Nino-induced rainfall deficits that led to a 50% shortfall in monsoon rains. This has created water scarcity issues at key reservoirs like Srisailam and Nagarjuna Sagar, prompting a need for efficient water distribution practices. Looking ahead, the chief minister outlined plans for the upcoming Polavaram project, which aims to deliver water to the Krishna delta, Srisailam, and beyond into the Rayalaseema region. He argued that connecting the Ganga, Godavari, and Cauvery river systems could offer a lasting solution to regional water shortages. Additionally, he announced that the foundation stone for the Rayalaseema Horticulture Hub will be laid in September, offering local farmers new opportunities to export agricultural products via the Ramayapatnam port. A number of high-profile figures attended the event, including Water Resources Minister Nimmala Rama Naidu, Member of Parliament Magunta Srinivasulu Reddy, and several legislators such as Kandula Narayana Reddy, M. Ashok Reddy, and M. Ugra Narasimha Reddy. Rehabilitation and Resettlement Commissioner P. Prasanthi was also present, underscoring the administrative coordination required for such a complex undertaking. The Veligonda project marks a major milestone in Andhra Pradesh’s infrastructure development agenda, combining both economic and social objectives. With its focus on sustainable water resource management, it aligns with broader state policies aimed at enhancing agricultural productivity and ensuring equitable access to clean water. As preparations for the inauguration proceed, attention will shift to the practical implications of the project for local communities and the wider region.