State Government has zeroed in on the location of New Capital. AP Capital, likely to be on the river front, will come up between the villages Udhandarayuni Palem and Venkatarayuni Palem. Total construction cost of AP Capital is estimated to be Rs 1.10 lakh crore.
 
Nearly 9,000 acres out of 30,000 acres land acquired through Land Pooling will be returned to Land Owners post the sonstruction of capital. 15 percent of the total land will be used for roads, drainage system and other facilities. Out of nearly 7,000 acres which will remain with Government, 3,000 acres will put on open auction to raise funds.
 
Based on the Master Plan designed by Singapore firms, AP Capital will be constructed on 2,000 acres.  The core capital, a high security zone, facing river Krishna will cover Assembly, Secretariat, Raj Bhavan, Head of the Departments (HoDs) and etc.,
 
Central Business District include areas earmarked for business and commercial purposes. Entertainment Zone covering 8-km stretch along the banks of Krishna include parks, swimming pools or others.
 
AP Assembly and Raj Bhavan will be facing river Krishna. Secretariat will be built in between these two administrative buildings. Quarters for public representatives, AIS, IPS, IAS Officials will also be coming up in the Core Capital.