Reddy, who had been suffering from a heart problem since Monday, was admitted to Sri Venkateswara Institute of Medical Sciences Hospital (SVIMS), where he breathed his last around 2 am.
He was 85 and is survived by his wife, two sons and a daughter.
Born on October 20, 1933, Reddy completed his engineering education. In 1962 he entered politics and won his first election in 1967. He was elected MLA for six times from Lakkireddypalli assembly constituency.
In 1978, Reddy quit Congress to join the Janata Party. However, after he lost the polls on Janata Party ticket, he came back to Congress. In 1984, he joined the TDP. However, following differences with NTR, he rejoined Congress in 1989.
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Reddy was an expert on water issues of Rayalaseema. He contributed in the construction of Veligallu and Jarikona projects.
Political leaders have expressed condolence on the death of the former minister.