The Cabinet has decided to set up 10 new Kendriya Vidyalayas — seven in Telangana and three in Seemandhra, said Rural Development Minister Jairam Ramesh. A National Institute of Design, earlier planned for Hyderabad, will be be set up in Vijayawada.

Ramesh said the Centre will provide ₹15 crore each as capital expenditure to build the KVs in Kadappa, Guntur and East Godavari districts of Seemandhra. Sources said there was discussion in the Cabinet on the setting up of the NID. Ministers KS Rao, Pallam Raju and Chiranjeevi insisted it should be established in Seemandhra and suggested Vijayawada. Though Telangana ministers resisted, the Cabinet favoured the stand of the three Seemandhra ministers.