The TDP-led government promised to build a "world-class" capital city involving the people so that it could be "proudly" called the "people's capital".
Vijayawada city, as such, will not be the capital but the area around will be developed into the new seat of power of the residuary state.
Chief Minister N Chandrababu Naidu, who made an announcement in the Assembly on the new capital, said, "The Cabinet met on September 1 and resolved to locate the capital city in a central place of the state, around Vijayawada, and go for decentralised development of the state with three mega cities and 14 smart cities. It is proposed to go for land pooling system to be worked out by a Cabinet sub-committee."
The panel, appointed by the Centre to suggest alternatives for the capital of the truncated state which lost Hyderabad to recently-created Telangana state, submitted its report to the Union Home Ministry late last month.
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"This decision of the state Cabinet is a reflection of the popular sentiment, and is affirmed by views expressed in representations received by the Sivaramakrishnan Committee. Nearly 50 per cent of the representations received by the committee favoured Vijayawada-Guntur region as the best location for the capital area," Naidu added.
Leader of Opposition Y S Jaganmohan Reddy welcomed the decision and said his party would offer constructive suggestions on development of the new capital. But the YSR Congress chief expressed reservations over the proposed land pooling, saying it would encourage real-estate operators.
"Ideally, 30,000 acres of land is required for the capital. It will be advantageous if it is government land."