In a major setback to the Andhra Pradesh government, Vamsadhara Phase II project works have been stopped indefinitely following protest by the project-displaced persons taking an ugly turn with unprecedented violence at the project site in Srikakulam district.

This major irrigation project in North Andhra districts, envisages construction of Barrage at Neradi Village and diversion of water through Flood Flow Canal into proposed reservoir at Hiramandalam to irrigate an ayacut of 1.07 lakh acres, at an estimated cost of over Rs 1,600 crore.

In view of tense situation, engineers and supervisors of the construction companies, including Soma Company expressed their reservations to continue the work fearing physical attacks on them and their family members.

The company claims Rs 1 crore worth property loss during Sunday’s violence incidents of setting fire to vehicles and office furniture. Demanding higher compensation, people to be displaced accusing that revenue officials did not make proper assessment of the trees, houses and other property to arrive at the quantum of compensation.

Chief Minister N Chandrababu Naidu, who seems to be was shocked with these developments, has squarely blamed the district administration for its failure to disburse compensation to the affected people. He also convey his apologies to the farmers accusing that the district administration failed to disburse compensation though a GO was issued on June 2, 2016.

Assuring that the compensation would be paid as per the Land Acquisition Act of 2013, Chief Minister said that the government would see to it that justice was done to every farmer.

He recalled that the GO was issued after holding discussions with the farmers and it was estimated that Rs 450 crore was required to pay the compensation and the government had already released Rs 471 crore. As many as 3,965 families were promised new houses. Chief Minister has appealed the farmers not to get panic and assured that compensation would be paid as promised.