National Disaster Management Authority member V K Duggal told reporters here that the Rs 1400-crore project was aimed at creating physical and non-physical infrastructure to meet emergencies during cyclones.
While Rs 758 crore would be spent in AP, the rest would be spent in neighbouring Odisha, after reviewing project detail, Duggal added.
"In the first phase, we have chosen AP and Odisha. In next phase, the project will be expanded to other states. AP, which has seen 103 cyclones over the years, will be a benchmark for implementing the project," he said.
The former Union Home Secretary said two battalions of the National Disaster Response Force (NDRF) would be raised soon in addition to the existing ten. The seven metro cities in the country would have one company of the NDRF each, he added.
"We have asked states to raise the State Disaster Response Force with personnel from the armed police. They will be trained by the NDRF in disaster management," he said.
State revenue minister Raghuveera Reddy said that of the Rs 758 crore, the state government would share 25 per cent of the project.
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"Of the total amount, Rs 637.15 crore will be spent on improvement of coastal infrastructure like roads, bridges and 148 multi-purpose cyclone shelters in the nine coastal districts.
"We will also start emergency operation centres in the state capital as well as district headquarters and equip them with the latest satellite phones and HAM radio sets," Duggal added.
He said tenders for the National Cyclone Risk Management Project works had to be cancelled twice after contractors formed a cartel and quoted amounts more than 40 to 50 per cent.