New Delhi, Sep 3 - Describing Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy as a 'tall leader of contemporary India', the union cabinet Thursday announced a state funeral for him and ordered the lowering of the national flag to half-mast at all state capitals.

The cabinet, presided over by Prime Minister Manmohan Singh, observed a two-minute silence in memory of the chief minister.

YSR, as the leader was popularly known, was killed when the helicopter he was travelling in crashed Wednesday on a hilltop in Nallamalla forests of Andhra Pradesh. The wrecked chopper with YSR's body and that of four others was found by air force helicopters Thursday morning.

Information and Broadcasting Minister Ambika Soni told reporters that the national flag will fly at half-mast in all state capitals on Sep 3-4 as a tribute to the chief minister.

Besides, the national flag will also be at half-mast atop central government offices in Andhra Pradesh on these two days.