In the mishap, around 9 persons have been confirmed dead while 17 more are still missing.
Survivors said they boarded the private boat as the boats of the Tourism Department were not available.
At least 16 people, including women and children, died Sunday after a boat packed with 38 passengers capsized in a river in southern India, police said.
The National Disaster Relief Force (NDRF) are undertaking search and rescue operations.
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The incident occurred when the boat set off for Pavitra Sangamam at Ferry village near Vijayawada from Bhavani Island, the police said.
Rajappa also announced an ex gratia of Rs 8 lakh to each of the families of the deceased. Most of the victims are believed to be from Ongole and Nellore. As many as 15 people were either rescued by local fishermen or swam to safety.
Two persons, who were rescued from the tragedy, complained of sickness and were shifted to a government general hospital in Vijayawada, the officials said. Bad light is believed to have hampered rescue operations.
Vice-President M Venkaiah Naidu, the Chief Minister, Opposition leader Y S Jagan Mohan Reddy and film actor and Jana Sena party president Pawan Kalyan were among who expressed their shock and grief over the incident.