The AP municipal administration minister P Narayana has told the media that the Centre has granted Rs.1600 crores as first installment for construction of capital city at Thullur. He said out of this amount union urban development ministry has granted Rs.1000 crores and rest by the finance ministry. He said this amount will be released in a week or two.

Actually, state government has asked the Centre to release Rs.20, 000 crore in the first installment for constructing Assembly, Council, Secretariat, CM’s Camp Office, Raj Bhavan, Ministers’ and Officials’ quarters and offices in the core capital. But, Urban Minister Venkaiah Naidu assured that sufficient funds will be released once the state government submits its master plan to the Centre. Master plan is expected to deliver in May or June months, but in the meantime a draft copy of it is likely to submit by the Centre for Livable Cities (CLC), Singapore in the first week of March.

So, the state government may seek for more funds based on that draft plan. Centre has assured the state government that it will provide sufficient funds for constructing the core capital city. Hence, the state government has to9 generate funds for developing the surrounds of the core capital city.