He told the assembly that the government has decided to "locate the capital at central place of the state around Vijayawada". It is known that the opposition parties are unhappy with this decision.
Naidu said the decision was taken in the state cabinet meeting Sep 1. The decision was taken sometime ago, but the announcement was delayed due to astrological reasons, said a Zee Tv report.
The real estate industry in the region is witnessing a huge leap as land prices has already soared in the stretch between Guntur and Vijayawada.
A separate state of Telangana was carved out of Andhra Pradesh in June. As per the agreement, Hyderabad will be a shared capital for both the states for 10 years.