The Chief Minister's Office of Andhra Pradesh announced on Saturday, 27 June 2026 that Chief Minister Nara Chandrababu Naidu toured Yerragondapalem constituency and Dornala mandal in Prakasam district, inspecting feeder canal works of the Veligonda Project at Gantavanipalle and distributing rehabilitation cheques worth Rs 300 crore to displaced families.

Context

The official post from the Chief Minister's Office states that Naidu inspected the Veligonda Project feeder canal works at Gantavanipalle during his visit to Dornala. He subsequently handed over Resettlement and Rehabilitation (R&R) compensation cheques totalling Rs 300 crore to families displaced by the project, before addressing farmers at the event. Ministers, legislators and senior officials were present at the programme.

The Telugu-language post reads: 'గంటవానిపల్లెలో వెలిగొండ ప్రాజెక్టు ఫీడర్ కెనాల్ పనుల్ని పరిశీలించారు. అనంతరం నిర్వాసితుల కుటుంబాలకు రూ.300 కోట్ల ఆర్ అండ్ ఆర్ పరిహారం చెక్కులను అందించారు' ('He inspected the Veligonda Project feeder canal works at Gantavanipalle. Thereafter, he handed over R&R compensation cheques of Rs 300 crore to displaced families.').

Policy Backdrop

The Veligonda Project is a major lift irrigation scheme conceived to supply water to drought-prone mandals across Prakasam, Nellore and Kadapa districts. It received administrative sanction in 2004-05, with construction proceeding in phases across successive state governments.

A formal Resettlement and Rehabilitation policy for project-affected families was put in place in 2005-06 and revised in subsequent years to include enhanced compensation. Timely disbursement of R&R funds has been a key instrument for reducing local resistance and litigation that can otherwise delay large irrigation works.

Post-bifurcation, the residual state of Andhra Pradesh has treated completion of pending major irrigation projects — including Veligonda and Polavaram — as a strategic water-resource priority, aiming to expand agricultural coverage and buffer against recurring drought cycles in the region.

Stakeholders and Impact

The immediate beneficiaries of Saturday's disbursement are families from villages submerged or displaced during the creation of the Veligonda reservoir and canal network. Receiving compensation is a prerequisite for many of these households to rebuild livelihoods, making the cheque distribution a significant step in project-area stabilisation.

Farmers in Prakasam district and the broader command area stand to gain once the feeder canal infrastructure is completed, as the project promises to bring assured irrigation water to historically rain-dependent agricultural land. Naidu's address to farmers at the event signals the government's intent to maintain direct communication with the agricultural community on project timelines.

What's Next

Attention will now focus on the remaining civil works — particularly tunnel and canal sections — and whether the state budget will announce further tranches of R&R disbursements for families yet to receive compensation. Progress on these fronts will determine how quickly the Veligonda Project can move towards commissioning and begin delivering water to its intended command area.

The pace of feeder canal completion and any updated project deadline from the state's water resources department are the key milestones to watch in the coming months.