The IIT and IIM are among the 11 prestigious institutions that the Centre had proposed to set up in the state during its division this year.
Accordingly, the IIM would be set up at Aanandapuram in Visakhapatnam and the IIT at Yerpedu in Chittoor district, a state government release said here today.
An IISER (Indian Institute of Science Education and Research) would also be set up at Yerpedu.
The Centre has approved the location of all the three institutions, the release said.
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Among other institutions, the state government had earlier proposed to identify location of an NIT in West Godavari district, but later decided to change the location. Instead, an IIIT would now be set up in West Godavari district.
Similarly, the location of a proposed tribal university in Vizianagaram has also been changed to Visakhapatnam district.
A Central university would be set up either at Hindupur in Anantapur district or near Tirupati.
Naidu has suggested that representatives of Carnegie Mellon University, MIT, Harvard, Stanford, Cambridge and Oxford universities could be included in the proposed panel.
It was also decided that the standards of education in engineering colleges be evaluated by the Technical Education Commissioner and an 'Ascending and Descending order' be prepared, the release added.