---
title: " Andhra Pradesh CM releases ₹200 crore as Veligonda oustees compensation"
url: https://projectchintan.com/article/veligonda-oustees-compensation-200-crore-jcioj
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-19T13:30:42.439Z
modified: 2026-08-19T16:00:07.719Z
language: en-IN
---

#  Andhra Pradesh CM releases ₹200 crore as Veligonda oustees compensation

 Andhra Pradesh Chief Minister N. Chandrababu Naidu released ₹200 crore as compensation to Veligonda project-displaced families, part of a total ₹518 crore disbursed so far. The One-Time Settlement program covers 2,557 families, with ₹318 crore previously allocated to 2,557 families and ongoing reha

## Key takeaways

- The latest payout under the One-Time Settlement (OTS) is ₹200 crore to 1,600 displaced families.
- Total compensation disbursed to Veligonda oustees stands at ₹518 crore, with ₹318 crore previously paid under OTS to 2,557 families.
- Rehabilitation infrastructure is progressing across seven colonies, with six completed.

## What Happened

Andhra Pradesh Chief Minister N. Chandrababu Naidu released ₹200 crore as compensation to families displaced by the Veligonda irrigation project. Officials said this tranche brings the total compensation paid to Veligonda oustees to ₹518 crore. The ceremony took place on the Assembly premises, with representatives of the displaced families present. The government indicated that the remaining compensation would be released soon.

Under the One-Time Settlement (OTS) scheme, the government has already paid around ₹318 crore as compensation to 2,557 families who constructed houses on their own. In the latest development, ₹200 crore was released under OTS to 1,600 displaced families. Alongside compensation, the government is developing infrastructure in seven rehabilitation colonies, with works completed in six colonies so far, excluding Vemulakota. The displaced families are gradually moving into houses in the Resettlement and Rehabilitation (R&R) colonies.

## Why It Matters

The compensation and ongoing rehabilitation efforts are positioned as part of a broader government effort to advance the Veligonda project while addressing the impact on displaced families. The administration framed the move as recognition of the sacrifices of farmers and displaced households for a major irrigation project, and it signaled a continued commitment to fulfil outstanding compensation payments in the near term.

## Background

The Veligonda project has been a priority project in undivided Prakasam district, with foundation stone laid in 1996. The current government set a target to complete the project by August 2026, and reported progress on related head regulator works, tunnel-related benches, and removal of the TBM (Tunnel Boring Machine). The government noted that the TBM weighs about 1,900 tonnes and measures 175 meters in length, with remaining TBM debris expected to be cleared within five days.

## Key Facts

- Amount released in the latest tranche: ₹200 crore
- Total compensation paid to Veligonda oustees: ₹518 crore
- OTS compensation paid: ₹318 crore
- Number of families under OTS compensation: 2,557
- Latest OTS payout: ₹200 crore to 1,600 families
- Infrastructure in rehabilitation colonies: seven planned, six completed so far
- Project foundation stone: 1996

## What Happens Next

Officials indicated that the remaining compensation under the OTS would be released soon, as part of continuing arrangements to support affected families and advance rehabilitation across the seven colonies.

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Canonical: https://projectchintan.com/article/veligonda-oustees-compensation-200-crore-jcioj
Reported from: Multiple Sources