The Veligonda Project is an irrigation project located in Markapur, Markapuram district in Andhra Pradesh, India. When completed, the project will provide irrigational facilities to 447,000 acres and drinking water to 1.5 million people in 30 Mandals of fluoride and drought affected areas in Markapuram district, Nellore district and Kadapa district by diverting 43.5 TMC of floodwater from the Krishna River from foreshore of Srisailam Reservoir near Kollamvagu and proposed to store in Nallamalasagar Reservoir. The water for the project is drawn through two 18.8 km long tunnels across Nallamala hills. The project has been renamed to the "Poola Subbaiah Irrigation Project". It displaces around 20,946 families. The oustees have protested for enhanced compensation over the years and many have not received the compensation promised to them.
Design
The design includes two parallel tunnels of 18.8 km with 7 m (tunnel 1) and 9.2 m (tunnel 2) internal diameter and a 21.6 km flood flow canal for the water transmission system linking Srisailam reservoir to a reservoir called 'Nallamala Sagar'. Nallamala Sagar is planned to have 43.5 Tmcft live storage at 244 m msl full reservoir level and 214.3 m msl minimum draw down level. Full supply level to the tunnels from the Srisailam reservoir is 857 ft msl (261.2 m msl) and the sill level at tunnels water inlet is 840 ft msl (256.03 m msl). Irrigation to 1.19 lakh acres and drinking water to 4 lakh population in Markapuram district is planned as part of the first stage. In the second stage, irrigation to 3.28 lakh acres and drinking water to 11.25 lakh population in 30 mandals of Markapuram, Nellore and Kadapa districts is planned. Velagalapalle lift irrigation scheme, Papinenipalli lift irrigation scheme are also part of the project. About 2.58 TMC water to the mega industrial hub at Donakonda in Prakasam district and another 1.27 TMC water National Investment and Manufacturing Zone (NIMZ) in Pamuru and Pedacherlopalle mandals of Markapuram district are also parts of the expanded scope of the project. Conceived during the tenure of former chief minister N.T. Rama Rao and initiated in 1996, is estimated to cost ₹10,580 crore. With successive governments not giving required funds, the progress hit the roadblock. The contractors who bagged the project were also vexed due to difficulties in making the tunnels in the toughest terrain. The tunnel-1 which was 18.787 km long was completed for a length of 13.6 km by 2018. Although digging of just around 5 km is left to commission the project, the irrigation department could complete only around 2 km between 2019 and 2023. The project is being implemented by a double shielded tunnel boring machine to make the tunnel without disturbing wildlife in the Nagarjunsagar-Srisailam Tiger Reserve. 18.2 km (11.3 mi) of the first tunnel, and 11.02 km (6.85 mi) of the second tunnel digging were completed by January 2025. The first tunnel completed as of 14 January 2021. The remaining length of second tunnel is completed using drilling and blasting method by January 2025 albeit with 5 m diameter instead of 9.2 m paving the way to fill the project reservoir. As of August 2025, nearly Rs 4000 crores works are incomplete to fill the Nallamalla sagar reservoir. As of now in September 2025, the Government of AP is planning to complete the project on high priority by releasing all necessary funds. The expected date of reservoir filling is in August 2026 if all the pending works are completed as expected.
Veligonda Project – Land Acquisition and Rehabilitation Land Acquisition (LA) and Rehabilitation & Resettlement (R&R): The Veligonda Project involves significant land acquisition and resettlement measures. • Stage I: 23,468 acres were acquired out of a planned 24,931 acres, leaving 1,463 acres pending. • Stage II: 6,832 acres were acquired out of 10,101 acres, with 3,269 acres remaining. • A total of 11 villages are expected to be submerged and relocated to 7 designated R&R centres. • Of 7,321 project-displaced families, compensation has been provided to 2,565 families. • Infrastructure development has been completed in 4 of the 7 R&R centres, while work continues in the remaining 3. • The estimated cost for the R&R package and pending infrastructure works is ₹622.60 crore. • The estimated cost for land acquisition related to Canals Phase-I is ₹154.40 crore. Achievements during 2024–26: • Pending work bills amounting to ₹140 crore were cleared, enabling resumption of construction. • Protection works on the feeder canal costing ₹456 crore were sanctioned and completed in critical sections. • Bench excavation works were completed, and 97% of lining works in Tunnel-II were finished. • ₹300 crore was released towards R&R activities.
Project Timeline
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