In a strong rebuttal to Chief Minister N. Chandrababu Naidu’s repeated assertions, the YSR Congress Party has laid bare the facts: the Veligonda Project truly picked up pace under late Y.S. Rajasekhara Reddy (YSR) and former Chief Minister Y.S. Jagan Mohan Reddy. While the two leaders poured in massive funds and completed the most challenging segments at record speed, Naidu’s governments recorded minimal progress and are accused of wasting public money, the party says.
YSR Turns the ‘Mountain-Sized’ Dream into Reality
The Veligonda (Poola Subbaiah) Project was conceived in 1993-94 with a Detailed Project Report that envisaged diverting Krishna floodwaters from Srisailam to a new Nallamala Sagar reservoir through twin tunnels. The objective: irrigate 4,47,300 acres and provide drinking water to 15.25 lakh people in 30 mandals across the drought-prone districts of Prakasam, Nellore and YSR Kadapa.
No one took up the project until 2004. As part of his ambitious Jalayagnam programme, YSR spent Rs. 3,581.58 crore, completed most of the Nallamala Sagar reservoir and tunnel works, and began construction of the 21.8-km feeder channel, Teegaleru Canal, Eastern Main Canal, Western Main Canal and Gottipadia Canal. He laid the foundation stone on 27 October 2004.
YS Jagan Govt Spends Rs. 1,046 Cr Despite COVID, Finishes Asia’s Longest Twin Tunnels
Between 2019 and 2024, even amid the COVID-19 pandemic and severe financial constraints, the YSRCP government under YS Jagan Mohan Reddy spent Rs. 1,046.46 crore on the project and ensured every rupee was used productively.
Together with YSR’s contribution, 30.901 km of tunnel work was completed under the two leaders. YS Jagan dedicated the twin tunnels — among Asia’s longest — to the nation on 6 March 2024. The head regulator and canal connections to Nallamala Sagar were also finished, clearing the way for water flow.
Rehabilitation Colonies Ready by 2024
YS Jagan government completed full rehabilitation for 7,321 families from 11 submergence villages, spending Rs. 992 crore on one-time settlements and constructing ready colonies by 2024. Plans were in place to begin diverting Krishna water to Nallamala Sagar as soon as Srisailam reached 841 feet in the 2024 season.
Chandrababu’s Record: Just 6.686 km of Tunnelling in 2014-19
By contrast, only 6.686 km of tunnelling was done during Naidu’s 2014-19 term. Daily progress was just 2.41 metres in the first tunnel and 1.31 metres in the second.
During his earlier tenure as Chief Minister (1996-2004), records show a mere Rs. 10 lakh was spent — almost entirely on arrangements for the foundation-stone event itself.
CAG-Flagged Irregularities and Lavish Payments to Contractors
The TDP government allegedly paid contractors Rs. 630.57 crore extra through price escalations (GO 22 and GO 63) without matching progress — a matter reportedly highlighted by the CAG. In 2017, Rs. 68.44 crore was released for TBM repairs, yet daily tunnelling remained stuck at 1-2 metres.
Feeder canal works were of poor quality. Breaches occurred during last year’s rains, forcing the present government to sanction Rs. 456 crore for retaining walls and concrete lining — work now awarded to a contractor close to Naidu.
Missed Opportunity to Harness Floodwaters
The YSRCP points out that if rehabilitation had been completed earlier, the government could have diverted 848.96 TMC in 2024-25 and 1,652.12 TMC in 2025-26 of Krishna floodwaters that instead flowed into the sea via Prakasam Barrage.
Instead of giving credit to those who actually made Veligonda sprint ahead, Chandrababu Naidu continues to make “tons of lies” and delay a project that is now ready to transform the lives of lakhs of farmers and people in the three districts, the party alleges.
