The Telangana government would maintain cordial relationship not only with the Centre but also neighbouring states, Chandrasekhar Rao said.
Rooting out "political corruption" would also be top on his agenda to ensure transparent governance, he said.
"People of Telangana are looking forward for a progressive and development-oriented state. We will work in that direction and ensure a transparent administration. We will make Telangana a model state in the country in all respects," KCR promised, addressing a ceremonial parade to mark the Telangana formation day at the Parade Grounds in Secunderabad.
A Telangana State Advisory Council would be constituted with editors and other eminent people from various sectors to guide the government, the Chief Minister announced.
"In line with the promises we made on the eve of the elections, welfare will be top on our agenda. In the next five years, the TRS government will spend Rs one lakh crore for the welfare on SCs, STs, Backward Classes and minorities. Of this, Rs 50,000 crore will be spent on SC welfare alone," KCR announced.
"We will not leave scope for even a single rupee corruption in spending the welfare funds," he promised.
KCR also assured farmers that the government would soon implement its promise of waiving off farm loans up to Rs one lakh each and make Telangana the "Seed Bowl of India".
The government would also come out with a new industrial policy soon to attract investments into the new state and create jobs, he said.