The incident occurred near Manturu in Devipatnam block of East Godavari district around 5 p.m. There were 20 people on the boat when it capsized and 10 of them including two women swam to safety.
Officials launched massive rescue operations by using boats and divers. The state disaster management teams and the National Disaster Response Force (NDRF) personnel were pressed into service.
The rescue efforts were on despite darkness, said local legislator V. Rajeswari, who was supervising the rescue and relief operations. District Collector Karthikeya Mishra and other top officials were on their way to the accident spot.
The boat, which sailed from Kondamodalu, was on its way Rajamahendravaram. It is believed to have capsized due to gusty winds.
Boat operator Khaja surrendered before police in Devipatnam.
According to local people, there were 40 people on boat including a marriage party. Most of the passengers were tribals from the region.
Chief Minister N. Chandrababu Naidu directed the officials to undertake rescue operations on a war footing. He spoke to the District Collector and other officials over phone.
The incident came close on the heels of a boat with over 100 tourists catching fire in Godavari River in the same district on May 11. The passengers had a narrow escape as the driver wheeled the boat to the shore and they jumped off before the entire boat was completely gutted.