The veteran actor-producer had left an "indelible mark," in Telugu film industry, he said in a Raj Bhavan statement.
Born in an agricultural family, Rao rose to the highest position in Indian cinema and Telugu film industry and won an array of awards including Dadasaheb Phalke Award, he noted.
"His death is an irreparable loss to Indian cinema and to Telugu film industry in particular," he said, extending his condolences to the bereaved family.