The Andhra Pradesh cabinet on Monday resolved to initiate the process to include Kapus in the backward classes (BC) list with the appointment of a backward classes commission by the next cabinet meeting, the Times of India reported.
The government has also added the decision would not have any adverse bearing on job and educational prospects of the other communities already figuring in the BC list.
This was one of TDP's biggest poll promises ahead of the elections and this decision comes a few days after Kapu leader Mudragada Padmanabham gave an ultimatum to chief minister N. Chandrababu Naidu warning him of a protest.
"By the end of the December, Kapus should be included in BCs list. The government should immediately release the Rs 1,000-crore package," he had said.
In February last year, Naidu addressed a massive Praja Garjana rally in West Godavari, and said he would appoint a commission to work out modalities for implementing his promise.
The Kapu community with a significant population in the twin Godavari districts, plays a key role in deciding a party's chances in any elections.
The cabinet has also decided to create an exclusive corporation for Kapus with a corpus fund of Rs 100 crore. However, Kapu leaders were not happy with the announcement and demanded Rs 1,000 crore corpus, the TOI report adds.
Correction: The earlier copy had suggested that the 'BC' status to the Kapu community was already granted. Error regretted