Hyderabad, Andhra Pradesh Chief Minister Kiran Kumar Reddy on Friday asserted that the state is still one of the most preferred investment destinations notwithstanding the ongoing political turmoil over Telangana.

Reddy was speaking after formally inaugurating Berger Paints' largest water-based paint manufacturing unit with an initial capacity of 80,000 tonnes at Hindupur in Anantapur district.

"Despite so many discussions going on the division of the state, whatever heat it generates, economic programmes of the state are in favour of setting up industries here. Hence, people think that they would benefit if they set up their industry here," Reddy said.

Reddy said corporate biggies like Johnson and Johnson will be investing about Rs 450 crore in its proposed plant in the state, while Proctor and Gamble has an investment outlay of Rs 1,500 crore for its proposed plant in Mahabubnagar district.

Andhra Pradesh has been witnessing volatile political developments since few months over the AP Reorganisation Bill 2013 which was shot down by the State Legislature yesterday by a voice vote after defiant Reddy brought forth a resolution rejecting the Congress-backed legislation.

The Bill, which seeks to create a separate state of Telangana, was referred to the legislature by the President under Article 3 of the Constitution for eliciting its views.

The Bill was tabled in the House on December 16 and 86 members participated in the debate.

The Centre has already decided to table the Bill in Parliament in the session beginning on February 5.

Ministers N Raghuveera Reddy, S Sailajanath and former minister J C Diwakar Reddy were also present on the occasion.