In a major boost for Telangana Chief Minister K Chandrasekhar Rao's plans to develop a new Secretariat complex on the Bison Polo Grounds now in possession of Defence, the Centre has agreed to the State request to part with the land.

Apart from agreeing to the State's request to handover Defence land for Secretariat, the Centre has agreed to part with some stretches the defence lands for the expansion of Medchal Highway and Karimnagar Rajiv Rahadari, according to a statement from the Chief Minister's Office.

The Chief Minister, who is in New Delhi ahead of reshuffle of Union Cabinet on Sunday, informed the Centre stated it would consider the Telangana Government request for reduction of GST on the public utility projects and take appropriate decision.

The Chief Minister met Union Finance and Defence Minister Arun Jaitley in New Delhi on Saturday and discussed the issue of defence lands and reduction of GST on public utility projects.

During the meeting, Jaitley informed the Chief Minister of Telengana that the Centre is ready to handover the Bison Polo Grounds land and for new roads, the CMO statement said.

The Finance Minister said the decision on the request for the reduction of GST on Public Utility projects like Mission Bhagiratha, irrigation projects, road works will be taken after discussions with the GST Council meeting to be held in Hyderabad on September 9.

Jaitley added the GST on the construction works is reduced from 18 per cent to 12 per cent in response to the request made by the Telangana State Government and consider further reduction 12 per cent to 5 per cent.

Thanking the Centre, Rao said the Centre has recognised the importance of having a new Secretariat and expansion of Rajiv Rahadari and Medchel highways.

He hoped that the GST council would also take a favourable decision on the GST reduction for public utility projects.