The deceased were identified as P Satish (9), a class-IV student and P Tharun Ramesh (12), a class-V student. Both of them were residents of Naidupalem, they said.
Both the boys were studying in a private school at Atchutapuram in the district and had come home to attend a function in Tharun Ramesh's house, said police.
The duo went to a small hotel for breakfast this morning on their bicycle, they said.
The boys took a road which passes along the Yeluru canal while returning home, police said, adding, they slipped into the canal while trying to avoid a muddy pool on the road.
Though some locals noticed the children drowning, they could not rescue the boys, said the inspector.
The bodies were later fished out from the canal.
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