During his visit to the village in Siddipet district, Rao said the assistance will be given to every family for self-employment.
KCR, as Rao is popularly known, directed the officials to ensure that the youth get help for whatever income generating activity they want to undertake.
He also asked them to bring back those who migrated from the village in search of livelihood and provide them all required assistance.
KCR, who was accompanied by his nephew and Siddipet legislator Harish Rao and top officials, announced that new houses will be constructed for all 2,000 families of Chinthamadaka and surrounding hamlets of Machapur, Sitarampur and Ankampet.
The sops announced by KCR are estimated to cost the state exchequer about Rs 400 crore. While all families will get an assistance of Rs 200 crore under the self-employment schemes, another Rs 200 crore will be spent on various development works including houses, hostels and roads.
He said the financial aid would be provided for self-employment like buying tractors, setting up dairies or other units. "This village should become a model for the rest of the country in economic prosperity," he said.
After reaching the village, he visited some temples and offered worship. He also interacted with villagers including his childhood friends and classmates.
Addressing the villagers, KCR asked them to work together for the betterment of the village. He directed the collectors and local legislator to ensure that all problems faced by the village were addressed within a month.
( With inputs from IANS )