Hyderabad: Andhra Pradesh’s government on Wednesday formally decided to name its proposed capital “Amravati”, after the capital of the historical Satavahana Kingdom.

The decision to this effect was taken at the state cabinet meeting on Wednesday.

Chief Minister N. Chandrababu Naidu, who returned from Singapore with the first phase of the master plan of the proposed capital, chaired the meeting.

The AP government plans to build a world-class capital at Thorrur in Guntur district, near Vijayawada and has procured 35,000 acres from farmers.

The cabinet also passed a resolution thanking the Centre for allocation of funds for building the capital. It sought regular assistance from the Centre until Andhra Pradesh comes up to the level of other states.

The preliminary master plan prepared by Singapore’s government and finalised during Chandrababu Naidu’s visit there, has proposed measures to ensure that the new capital will have high speed rail connectivity, roads and waterways as well as industrial corridors. The plan has identified major towns and cities to be developed as part of the capital region. They include Vijayawada, Mangalgiri, Guntur, Tenali, Sattenapally, Nandigama, Gannavara, Nuzividu and Gudivada.

The new capital, Amravati, where work is expected to start in the next couple of months, will also have high speed connectivity with several major ports. Apart from the capital, other major places in the capital region Gannavaram, Tenali and Gudivada will also have high-speed railway stations.

It will also be surrounded by several development and industrial corridors including Nizampatnam port to the capital, Telangana border to Nandigama and port town of Machlipatnam to Gannavaram, the airport near Vijayawada.

The state cabinet approved the new industrial policy with several incentives including 100 per cent reimbursement of stamp duties, special concession in land allotment for investments of Rs1 billion (Dh60 million) and more, additional incentives for automobile and biotechnology industries.