While Navy divers were airlifted to the spot, NDRF, SDRF, Fire and other rescue teams reached by rubber boats.
At least 20 persons swam ashore.
East Godavari district collector Kartikeya Misra said that they have located the launch.
The boat, which sailed from Kondamodalu, was on its way Rajamahendravaram.
The boat is said to be owned by Laxmi Venkateshwara boat services and the owner Khaja Mohinuddeen has surrendered before the police, according to the report. Due to sudden gales and whirl wind pools the boat lost balance and tilted one side and capsized.
Eastern Naval Command, Visakhapatnam said, "A Dornier aircraft with diving teams sent to Rajahmundry (where boat capsized in East Godavari), additional diving teams are being sent by 2 helicopters early Wednesday morning to join rescue operations". "I pray for the safety of those missing". Andhra Pradesh Chief Minister Chandrababu Naidu, Deputy Chief Minister (Home) N Chinarajappa has inquired about the incident and instructed the concerned officials for search operations.