A high-level inquiry would be conducted into the incident involving GAIL gas pipeline in East Godavari district and those responsible for it would be punished, he said.
Naidu, who was in Delhi, cut short his trip and rushed to the site of the tragedy at Nagaram village this afternoon, accompanied by Petroleum Minister Dharmendra Pradhan and officials of oil companies and the district administration.
Of the Rs 25 lakh compensation, GAIL would provide Rs 20 lakh, while the Centre and AP government would give Rs 2 lakh and Rs 3 lakh respectively, Naidu told reporters.
Rs 5 lakh each would be given to those who suffered permanent disability, Naidu said.
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"Those responsible will not be spared. Whoever it may be, they will not be spared," he said.
The loss of crops, coconut plantations and livestock would be compensated on the basis of the report to be prepared by the district administration, the Union Minister said, adding GAIL would also build pucca houses.
Naidu visited the hospitals in Kakinada where the injured were undergoing treatment. The Chief Minister told the kin of the victims the government stands by them and directed the officials to provide good medical care to the injured.