Chief Minister N Chandrababu Naidu announced that Phase I of the Poola Subbaiah Veligonda Project will be commissioned on 31 August 2026, ending a three-decade wait for drought-prone areas of Prakasam, Markapuram, Nellore and Kadapa districts. At his camp office he handed over the third-tranche rehabilitation and resettlement compensation cheque for Rs 2.5 billion (bn) to 2,027 displaced families. Officials said the launch date will trigger immediate operational works. The administration positioned the commissioning as a priority for regional water security.

The government has disbursed Rs 7.68 billion (bn) in R&R compensation to 6,206 affected families in 48 days, with Rs 3.18 billion (bn) to 2,557 families in Phase 1, Rs 2.0 billion (bn) to 1,622 families in Phase 2 and Rs 2.5 billion (bn) to 2,027 families in Phase 3. Only Rs 1.32 billion (bn) remains, which the State committed to clear swiftly. Officials said compensation was advanced to align rehabilitation with commissioning.

Phase I will 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 stage will supply drinking water to nearly 0.4 million (mn) people and irrigate 0.119 million (mn) acres, providing relief to communities and farmland that have faced recurrent deficits. Technical teams prioritised tunnel completion and intake works to meet the commissioning timetable.

Over the last two years the State government has invested Rs 22.5 billion (bn) to accelerate civil and tunnel works and ensure the deadline is met. Officials said the Phase I launch will mark the start of sustained water availability for the drought-hit districts and that follow-up measures will address remaining resettlement and operational handover tasks. The chief minister recalled that he laid the original foundation stone in 1996 and framed the inauguration as culmination of a long administrative focus.