The kid, Chadrasekhar, and his parents were brought to the CM's office here today.
The Rs 2 lakh cash gift will be deposited in a bank and given to the child with interest when he attains 20 years of age.
Expressing happiness over the operation and the safe evacuation of the two-year-old boy, trapped for over 11 hours in a 15-ft defunct borewell near Vinukonda, the chief minister congratulated the NDRF team, led by deputy commandant Madhusudan Reddy, for saving the toddler's life.
Naidu asked the officials to make this a case study and document it.
The CM appealed to people to take pictures of defunct borewells and send them to authorities concerned for necessary action.