On 15 November, 2023, Chief Minister Y.S. Jagan Mohan Reddy laid the foundation stone for the Varikapudisela Lift Irrigation Scheme (LIS) project at Macherla in Palnadu district of Andhra Pradesh. The project will be built at an estimated cost of Rs 340 crore for Phase-I.

Under this initiative, the state government aims to divert water from the Varikapudivagu stream to transform arid upland areas in Palnadu district. Construction work on the project has been commenced after securing the necessary approvals from the Central Forest and Environment Department. This project will be executed in a phase manner, reaching Vinukonda, Macherla, and Yerragondapalem.

The proposed project seeks to irrigate 1.25 lakh acres and cater to the drinking water needs of nearly one lakh people. After receiving the final nod for Forest and Environment clearances on 06 November, 2023, the YSRCP government started the work with the aim to transform the Palnadu district into a green hub. Besides, the government also procured wildlife approvals from the Central government on 19 May, 2023.

After completion of Phase-I, the project is expected to provide drinking water to 20,000 people and irrigate 24,900 acres, encompassing Veldurthi, Uppalapadu, Gottipalla, Srigiripadu, Bodilaveedu, Gangalakunta and Kandalakunta villages.

On completion of Phase-II, the project will provide drinking water to another 80,000 people. Overall, the project is anticipated to provide drinking water to over one lakh people and irrigate 1,00,463 acres of land.