The Governor described Rao as "one of the strongest pillars of the Telugu film industry" and a "complete film maker."
"Dasari was a brilliant director, producer, writer and screenplay writer. He knew the taste of the audience. He was among the few film makers, who made an equally impressive mark in Bollywood," he said in a Raj Bhavan statement.
As a Parliamentarian and as Minister, Rao had served the people of Telangana and Andhra Pradesh "with great dedication," he said.
Stalin recalled Rao was a "good friend" of his father and DMK president M Karunanidhi.
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He had left his "stamp" in the fields of cinema, politics and media and his demise is a "major loss" to all of them, he said in a statement.
Actor-turned-politician and DMDK founder Vijayakant described Rao as an "affable" person.
His death was an "irreparable damage" to the cinema industry.