The Tibetan spiritual leader's village of Hong'ai, located in Ping'an county in Qinghai province will soon become a city to be named Haidong and its former capital of Ping'an will be one of its districts.
The plan has been endorsed by China's cabinet, state-run Xinhua news agency reported today.
Starting from this year, the provincial treasury will allocate 1.5 billion yuan (USD 244 million) annually to boost Haidong's infrastructure development, the local government said.
The Dalai Lama, whose name is Tenzin Gyatso, was born in 1935 in a agriculturist family. At the age of two, he was recognised as the reincarnation of the 13th Dalai Lama, Thubten Gyatso and anointed as the 14th Dalai Lama becoming part of the pantheon of Tibet's Buddhism.
Also Read
His ancestral house remained there after he fled to India in 1959 opposing Chinese rule in Tibet.
China asserts that the rapid development of Tibet is lifting the poor and backward areas from poverty while critics point out that the rapid urbanisation is brining more outsiders mainly, majority Han Chinese.
"The base is essential in accelerating infrastructure construction in Ping'an County," Ma Yingjian, a deputy official, said.
Haidong, located in east Qinghai, is an underdeveloped, predominantly agricultural area.
"But my special mission has kept me here in the village," Xinhua quoted him as saying.
Gonpo Tashi is the Dalai Lama's only relative in China.
His desire to protect his uncle's old residence was realised in October with a 2.5-million-yuan allocation from the central treasury, the report said.
The refurbished compound has retained its original look, but the ground is newly paved, beams have been reinforced and murals were repainted.