Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday released ₹200 crore as compensation to the Veligonda project-displaced families. With this tranche, the government has paid a total of ₹518 crore so far as compensation to Veligonda oustees.

The representatives of the displaced families met the Chief Minister on the Assembly premises. Mr. Naidu said the government recognises the sacrifices made by the farmers and displaced families for major irrigation projects. He assured that the remaining compensation amount would also be released soon.

The displaced families expressed happiness over the government’s support and payment of compensation.

Officials said under the One-Time Settlement (OTS), the government has already paid around ₹318 crore as compensation to 2,557 families who constructed houses on their own.

On Wednesday, Mr. Naidu released a cheque for ₹200 crore under OTS to 1,600 displaced families. The government is also providing infrastructure facilities in seven rehabilitation colonies built for the displaced families.

Infrastructure works have already been completed in six colonies, except for Vemulakota. The displaced families are gradually moving into the houses constructed for them in the Resettlement and Rehabilitation (R&R) colonies.

Meanwhile, Water Resources Minister Nimmala Ramanaidu stated that Veligonda project would be a boon for the people living in the drought-prone and fluoride-affected areas of undivided Prakasam district.

Addressing the media on Wednesday, he recalled that the foundation stone for Veligonda project was laid in 1996 by Mr. Naidu.

He said that YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy had inaugurated the Veligonda project before its completion. He noted that after the coalition government assumed office, it set a target to complete the project by August 2026.

“To achieve this, all works related to the head regulator, including the CC walls and wing walls, were completed by May 2026. The works on the 5-km stretch of tunnel that required benching were also completed in these two years,” he said.

He pointed out that the previous YSRCP government had given up on the task of removing the Tunnel Boring Machine (TBM). “We are on the verge of removing the TBM, weighing 1,900 tonnes and 175 meters in length. Approximately 300 tonnes of TBM debris is still remaining and it would be cleared within the next five days,” he said.

Published - August 19, 2026 06:41 pm IST