VIJAYAWADA: Marking the end of a three-decade wait for the drought-prone regions of Prakasam, Markapuram, Nellore and Kadapa districts, Chief Minister N Chandrababu Naidu has announced that Phase-I of the Poola Subbaiah Veligonda Project will be officially commissioned on August 31, 2026.
At a programme held at his Camp Office on Saturday, the Chief Minister handed over the third-tranche rehabilitation and resettlement (R&R) compensation cheque for Rs 250 crore to 2,027 displaced families. This brings the total R&R compensation disbursed by the NDA government to Rs 768 crore across 6,206 affected families in just 48 days.
The breakdown includes Rs 318 crore released to 2,557 families in Phase 1, Rs 200 crore to 1,622 families in Phase 2, and Rs 250 crore to 2,027 families in Phase 3, leaving only Rs 132 crore in remaining dues that the State has committed to clearing swiftly.
Phase-I of the project will immediately draw floodwaters from the foreshore of the Srisailam Reservoir near Kollam Vagu through twin 18.8-km tunnels drilled across the Nallamala Hills into the Nallamala Sagar reservoir.
This initial phase will supply drinking water to nearly 4 lakh people and irrigate 1.19 lakh acres. Over the last two years alone, the State government has pumped Rs 2,250 crore into accelerating civil and tunnel works to ensure the project deadline is met.
Addressing the displaced families, Naidu reflected on his personal link to the project, noting that he laid its original foundation stone in 1996 following appeals from local farmers.
He added that fulfilling a project originally envisioned during the tenure of former Chief Minister NT Rama Rao gave him deep personal satisfaction.
Highlighting statewide water management challenges—including a 50 per cent rainfall deficit this season caused by El Niño conditions—Naidu stressed the critical need for regional water security through a macro-water plan, which includes completing the Polavaram Project to stabilise the Krishna Delta, conserving Srisailam storage for Rayalaseema, and pressing the Centre at the Southern Zonal Council meeting for the proposed Ganga-Godavari-Cauvery linking initiative.
Oustees voice happiness over swift payout
Reaffirming the government’s operational readiness, Water Resources Minister Nimmala Ramanaidu stated that Phase-I will immediately channel 10.7 TMC of Krishna waters into the Nallamala Sagar reservoir. He said the Chief Minister mandated clearing land compensation before releasing water, noting that total R&R disbursements across all major State irrigation projects, including Polavaram, have now crossed Rs 3,000 crore over the last two years.
Displaced beneficiaries sharing the stage voiced relief at the swift payout process. Displaced farmer Kashireddy recalled past hurdles under the previous administration, where oustees had to issue formal notices just to seek an opportunity to meet officials regarding compensation.
Other displaced people, including Bogem Srinivasulu and Ushamma, confirmed receiving their full compensation packages, and noted that infrastructure in the designated rehabilitation colonies is now fully operational.
The CM announced two major socio-economic initiatives for the region.