[3] The dam was constructed in a deep gorge in the Nallamala Hills in between Nandyal and Nagarkurnool districts, 300 m (980 ft) above sea level.

The minimum draw-down level (MDDL) of the reservoir is at 705 feet (215 m) MSL from its river sluice gates, and corresponding dead storage is 3.42 Tmcft.

[6] Tail pond weir was completed during the year 2017 and pumping mode operation is being done even when the downstream Nagarjuna Sagar reservoir water level is below 531.5 feet (162 m) MSL.

[citation needed] In the meantime the project was converted into a multipurpose facility with a generating capacity of 770 megawatts (1,030,000 hp) by its second stage which was completed in 1987.

Under the right bank branch canal 790 square kilometres (310 sq mi) in Kurnool and Kadapa districts will have assured irrigation.

Veligonda reservoir receives water by gravity through tunnels to irrigate lands in Nellore, Kadapa and Prakasam districts.

Systematic Neglect and absence of diversion of funds is evident in maintenance of the dam and lack of any modernization attempts of the Powerhouse.

[16] The endeavor shall be to fill the Nagarjuna Sagar reservoir fully with the uniform water released through the power generating units.

The PSHP can be used for energy storage purposes on daily basis and to transfer Godavari water to the Srisailam reservoir during drought years.