Naidu Meets Polavaram Project Rehabilitated Families, Disburses ₹226 Crore Compensation
Third phase of rehabilitation package highlights government’s focus on project completion and welfare of affected families
VIJAYAWADA: Chief Minister N. Chandrababu Naidu on Wednesday handed over a cheque of ₹226.61 crore to families displaced by the Polavaram Project, marking the third instalment of compensation, coinciding with the Ugadi festival.
Interacting with the beneficiaries at his camp office in Undavalli, the Chief Minister acknowledged the sacrifices made by project-affected families, stating that the long-pending irrigation project was steadily becoming a reality because of their cooperation.
He described the Polavaram project as the “lifeline of Andhra Pradesh,” asserting that its completion and the eventual interlinking of rivers would majorly transform the state’s agricultural and economic landscape.
Addressing the public concern over delays, Naidu said the diaphragm wall — a critical structural component — had suffered damage due to alleged negligence by previous government. Following expert consultations, the state undertook reconstruction of a new diaphragm wall at an estimated cost of ₹1,000 crore.
“The diaphragm wall will be completed within a week and the project works are progressing rapidly,” he said, adding that construction activity has been significantly accelerated over the past 21 months.
Expressing confidence in meeting deadlines, the CM said the project would be completed within two months after next year’s Ugadi, fulfilling a long-cherished dream of the people of the state.
Naidu also highlighted administrative steps taken to prioritise the project, noting that the Rampachodavaram constituency was reorganised as Polavaram district, keeping in mind both the project’s strategic importance and the welfare of displaced families. “Although the project falls under the purview of the Centre, the state government has taken the lead in executing it with commitment,” he said.
Detailing the compensation package, the chief minister said payments gained momentum after the alliance government assumed office. He recalled that ₹800 crore was disbursed as the first instalment during Sankranti in January 2025, followed by ₹916 crore during Diwali. With the latest release of ₹226.61 crore for Ugadi, the total compensation paid over 21 months has reached ₹1,943 crore, benefiting 26,149 displaced persons.
The CM said, “As part of the two-phase rehabilitation plan, steps have been initiated to relocate 38,068 displaced persons in the first phase. Of the 75 planned rehabilitation colonies, 26 have been completed while construction is underway in 49 others.The government is also developing colonies for 17,114 displaced persons identified in 2022, with a target to complete rehabilitation by April 2027.”
Naidu noted that an additional `3,500 crore would be required to complete the project. Each displaced family is being provided `3.5 lakh for house construction, while financial assistance for house sites has been increased to ₹2 lakh.
He reiterated that the project had been delayed by six to seven years due to past administrative lapses.
Several beneficiaries expressed their gratitude, sharing their experiences and appreciation for the ongoing support.
Water resources minister Nimmala Rama Naidu, Chief Secretary Sai Prasad, and Polavaram R&R officials were present.
