The Andhra Pradesh government on Monday announced cash rewards of Rs 500,000 to villages that resist Naxalites and drive them out.
Chief Minister N Chandrababu Naidu took the decision at a high-level review meeting held in Hyderabad on Sunday.
He applauded the action of the residents of Velpanur village in Kurnool district, who recently resisted a Naxalite raid.
A group of 15 Naxalites, belonging to the Bavanasi dalam (armed squad) of the outlawed People's War group, entered the village early on Saturday.
On spotting the Naxalites camped near the village temple, the villagers confronted them with sticks, daggers, hunting sickles and other lethal weapons, including crude bombs. Sensing danger, the extremists, including three women, fled.
The Gram Rakshak team and village development committee of Velpanur had recently decided against allowing extremists to enter their village as it was hampering development work.
Senior police officials recalled similar instances of villagers resisting armed Naxalites in Nizamabad, Adilabad and Karimnagar districts.