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.