Hyderabad: After five hours of deliberations, the Council of Ministers AP on Monday decided to build the new capital around the city of Vijayawada. The Cabinet rejected the report of the committee Sivaramakrishnan, which was presented to Center two days ago. 

Chief Minister N. Chandrababu Naidu AP will announce the decision in the Assembly on Tuesday, after which the government Communicate your decision to the Centre. Mr. Naidu said he would develop three megacities and other small towns around the capital. 

According to sources, Mr Naidu had allowed the ministers to tell the media off the record that capital would rise around Vijayawada. However, some ministers said the capital was likely rise between Vijayawada and Guntur, as previously announced by Mr. Naidu, while a few are located in Nuzivid. 

The Cabinet decided to create a subcommittee to gather their land for the construction of the capital and also to negotiate with farmers to acquire the land. The Cabinet decided to acquire the land at a ratio of 60:40. 

The sub-committee is composed of Mr. Yanamala Ramakrishnudu, Mr. P. Narayana, K. Atchennaidu Mr. Pulla Rao Prattipati and Mr. Devineni Uma Maheswara Rao. Deputy Chief Minister K. E. Krishna Murthy apparently expressed his unwillingness to be part of the subcommittee. 

In the early ministers had thought it would be best to take a final decision on the capital to end the unnecessary speculation. The decentralization of administration, the ministers said it would not be possible to establish the various directions of the various districts in the state. They secretaries of departments and heads of departments should be somewhere in the state capital, to run the administration smoothly.