Andhra Pradesh was awarded the prestigious Raja Bhalinder Singh Trophy at the close of the 32nd National Games in Hyderabad on Sunday.
The host, with 93 gold, 86 silver and 63 bronze medals, topped the standings among the states and Union Territories, which shared the honours in 32 disciplines.
It scored 1,001 points and was adjudged the best state on the basis of the number of medals won.
Sports Minister P Ramulu received the trophy on the state's behalf from Prime Minister Atal Bihari Vajpayee.
Richa Mishra, who represented the state, was adjudged the best female athlete and won the Indian Olympic Association trophy. She had bagged 16 medals in swimming events -- seven golds, seven silvers and two bronzes -- and secured 37 points.
Rehan Pooncha bagged the IOA trophy for the best male player. He won 10 medals in all -- five golds, four silvers and one bronze -- in the swimming events.
Punjab had to be content with playing second fiddle. It got 146 medals -- 54 golds, 37 silvers and 55 bronzes.
Andhra Pradesh has announced a cash prize of Rs 300,000 for a gold medal, Rs 200,000 for a silver medal and Rs 100,000 for a bronze medal.
The state will have to give away Rs 6 crore as prize money to its players. Richa Mishra alone will get Rs 38 lakh.