Andhra Pradesh's capital city to be called Amaravati would be constructed on the banks of the Krishna river, between the cities of Vijayawada and Guntur.
Naidu thanked the Singapore government for helping the state by providing a masterplan for the proposed capital city.
"It is a 'green' plan, because of its emphasis on public transportation and not merely private transportation. It is green because it has considered forms of alternative transportation like cycling and other connectivity elements. It will set a new benchmark not just by Indian standards but by international standards," Iswaran said at a joint press conference with Naidu.
The plan also envisages a great deal of economic activity evolving in the proposed city over the next "several decades", he said.
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"So, it is not a plan that is to be executed in one, two, three, four, five years. It is a plan that envisages development over decades. We have to evolve according to the direction set by the government of Andhra Pradesh and the aspirations of the people," he said.
The plan has taken into consideration transportation requirements and environmental aspects, he said.
When asked about the cost for developing the capital, he said, "Nobody can calculate the cost but we can estimate the infrastructure needed through different models. We will take central government support."
Earlier, the Singapore government had submitted its masterplan for the Andhra Pradesh capital region.
Replying to a query, Naidu said his government would like to complete the project as soon as possible.