The Centre is toying with the idea of providing special package to Rayalaseema region on the lines of Bundelkhand.
Rural Development Minister Jairam Ramesh said an expert panel would be constituted to determine the new capital of residual Andhra Pradesh.
He said the committee would recommend the new capital within 45 days of the Telangana Bill being enacted by the Parliament.
He said the government was committed to financing the building of the new capital -- Raj Bhavan, Secretariat, High Court and all other such facilities.
Jairam, who is he member of the Group of Ministers on Telangana, said Human Resource Development Minister M M Pallam Raju recommended Kakinada to be made capital for residual Andhra Pradesh.
Ramesh said the Centre was considering the proposal for Visakhapatnam, Vijayawada, Amaravati and Kurnool.
The Rural Development Minister claimed that the GoM had a clear understanding of Andhra Pradesh and made recommendations after a lot of exercise.
He said that senior Ministers Antony and Veerappa Moily served as in-charge of state party affairs and Home Minister Shinde served as the Governor of Andhra Pradesh.
On the issue of water-sharing, Ramesh said the Centre would create a two-tier institutional mechanism -- political and administrative -- to address it.
“On water, we are suggesting a two-tier mechanism-an apex council comprising Chief Ministers in order to discuss issues relating to planning of water resources and two boards -- a Krishna River Board and Godavari River Board -- to do the day-to-day management regulation and administration to ensure that the award to the tribunal will get implemented,” he said.
He said Krishna board would be located in residual Andhra Pradesh and Godavari board in Telangana. “And for the first time in the Bill we have put the principles on which the boards will function so that water does not emerge as a source of conflict,” he said.
Ramesh said that Polavaram would be declared as a national project and would be executed by the Union government following all environmental and R&R norms.
two-tier model for sharing water
On the issue of water-sharing, Rural Development Minister Jairam Ramesh said a two-tier mechanism – an apex council comprising CMs and two boards, the Krishna River Board and Godavari River Board, would get implemented.