"The land for construction of new capital would be taken from farmers under land pooling in which farmers will have a share after the development (of capital) instead of compensation. Land pooling would be beneficial for farmers and the government would take up an awareness campaign for the same," Naidu said here.
He was addressing reporters after launching the 'Swachh Bharat' (cleanliness drive) and four other programmes.
"In that case (acquisition), the state government will compensate farmers for their land by paying them at four-time the prevailing market rate," he said, adding that the process of setting up infrastructure for the new capital between Vijayawada and Guntur cities will commence very soon.
He said that his government has actively taken up the issues like waste management, sewerage water treatment and traffic congestion in these two cities considering that a large number of people are expected to migrate there.
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Naidu also introduced 'enhanced public pension scheme' for senior citizens, widows and physically handicapped.
Under the scheme, the pension amount is raised to Rs 1000 a month from Rs 200 for senior citizens and for physically handicapped from Rs 500 to Rs 1500 per month.