The KCR government has approached Governor E S L Narasimhan asking him to speak to the Andhra Pradesh government about handing buildings in the Secretariat allotted to it. Following a Cabinet meeting, Deputy Chief Minister Kadiyam Srihari announced while the Centre had made Hyderabad a common capital for 10 years, the Chandrababu Naidu government had already shifted most offices to Amaravati area. Therefore, the J, H, K and L blocks which were allotted to Andhra Pradesh after bifurcation are lying vacant, says Srihari. "We have been informed that Mr Chandrababu Naidu remarked that his government would not mind handing over the empty blocks. We are requesting the Governor that we need these buildings," says Srihari.

The KCR government plans to demolish four blocks of the Secretariat (A, B, C and D) to construct a new, vastu compliant Secretariat building at a cost of Rs 1,200 crore. Chief Minister KCR will lay the foundation stone for the new Secretariat in November. Ever since the TRS government came to power, KCR has avoided the Secretariat altogether because it reportedly has "serious vastu defects" according to his advisors. However, KCR is not too happy with the U-shaped design submitted by architect Hafeez Contractor. The design which Contractor submitted is somewhat on the lines of North Block-South Block in New Delhi.

While the construction of the new Secretariat building is on, the Telangana Secretariat employees will temporarily function from the Burugula Rama Krishna Rao Bhavan on the Tank Bund road. The TN government plans to shift all offices located outside the Secretariat to the J,H K and L blocks if the Andhra Pradesh government hands over these buildings.

The power to allot buildings to AP and Telangana lie with the Governor as per the AP Reorganisation Act. KCR wants the new Secretariat to be a 10-storeyed tower built over five lakh square feet.

Chandrababu Naidu, who met with the Governor in Vijayawada, is said to have made it clear that handing over of blocks is not an issue but there were other matters too between the states, which KCR should address. Naidu is said to be insisting on an AP Bhavan being constructed in Hyderabad just like the one in Delhi.

In the Telugu Desam politbureau meeting held in Vijayawada, some members are said to have raised the matter of son Lokesh being included in the Cabinet. However, Naidu was tight-lipped on the matter. It remains to be seen if Lokesh does indeed become a Minister this year.