Reddy (85) passed away here on Monday following a brief illness.
Telangana Chief Minister K Chandrashekhar Rao was among the prominent personalities who attended the funeral.
A large number of poets, writers, and ministers came to pay their last respects to the litterateur.
The chief minister announced that bronze statues of the doyen of Telugu literature will be erected on Hussainsagar Tank Bund here, in Karimnagar, and also in Hanumajipeta village, the native place of the late poet, in Rajanna Sircilla district.
He had to his credit more than 80 publications, which include poems, film songs, lyrical dramas, ballets, essays, travelogues, ghazals -original and in translation - and literary criticism.
Reddy's works have been regarded as trend-setters. He had nearly 3,500 film songs to his credit.
He was also nominated to Rajya Sabha in 1997.
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