A short-circuit caused the fire, officials said. As many as 142 families have become homeless, while the loss is estimated at Rs 40 lakh.
As the area is near the seashore, high wind made the fire spread fast.
Kakinada Fire Office staff and NFCL rescue team reached the spot immediately and doused the blaze.
Union Minister M M Pallam Raju, collector Neetu Kumari, and others visited the spot.