Rao said this during an animated debate in the Question Hour on the issue which saw the BJP walking out in protest.
The government proposed to build a new Secretariat complex, also planned to accommodate legislature buildings, as the existing Secretariat fails to meet fire safety standards and also had space constraints, among other reasons, he said.
BJP's K Laxman, G Kishan Reddy and Ch Ramachandra Reddy opposed the proposal to build a new Secretariat, saying that the existing Secretariat complex is situated in an "excellent location".
The Bison Polo Ground, where the new complex is being proposed, is mainly used for sports activity, they said.
Rao, however, said some fire incidents took place in the existing Secretariat building with files getting burnt.
The space in the complex is grossly inadequate for the requirements of the Secretariat and that the construction of buildings was not properly planned, he said.
The Secretariat symbolises the existence of the state and also gives an impression about the state, he said.
The cost of the project, estimated to be around Rs 180 crore, is also not too heavy, he said, adding that the government would like to go ahead with the proposal as per relevant rules and norms.
Alleging that the state government adopted a stubborn attitude and that the proposal was "against public opinion", BJP floor leader G Kishan Reddy announced walk out by his party.
The state government is in communication with the Centre as the proposed site for construction of new Secretariat complex is under the possession of Defence ministry.
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