The fine balance struck between development and preservation of heritage in relocating the ancient Buddhist University of Nagarjuna at a new site in Andhra Pradesh came in for special praise by Prime Minister Manmohan Singh in Delhi on Monday.

"History, archaeology and culture have all been preserved in a beautiful manner. We feel proud visiting the site today," he said inaugurating the 12th International Conference of National Trusts in Delhi.

Noting that the original site was in the valley that was submerged by construction of the Nagarjuna Sagar Dam, he said with the support from United Nations Educational, Scientific and Cultural Organisation, the government of the day moved the remains from the original location in the valley to the top of the hill.

"At the same time, we were able to pursue development by constructing that dam which has contributed enormously to the prosperity of the farmers and people of the people," he said.

There was a need to ensure that conservation efforts have components for local employment generation, education and awareness programmes, improving access to urban facilities and enhanced maintenance of open spaces through public participation, he said.

"Heritage sites such as the Taj, Humayun's Tomb or the Qutub Minar, if properly managed and integrated into the city planning and development process have the capability of improving living conditions of the thousands who inhabit their neighbourhoods," he added.