He asked the officials to prepare an international standard master plan for the city with two more airports, satellite townships in 100 km radius, another outer ring road, rapid rail and metro connectivity.
Addressing ministers and top officials here, he said the existing GMR airport in the south Hyderabad has direct flights to many countries.
"In the coming days we need hundreds of flights. Hyderabad has the advantage. It has the potential to become a hub between east and west. The city can absorb any number of airports," he said.
This was the first such interaction Rao had with officials since he assumed office as the first chief minister of Telangana June 2.
Addressing the workshop on 'Re-inventing Telangana', he said the state had 39 percent urbanization, which could soon become 50 percent.
"With this Telangana can be number one urbanized state in India. The advantage is inter-dependent life and more employment opportunities. The world is going towards urbanization because there will be less of vulnerability," he said.