The chief minister along with Eastern naval command chief Vice Admiral H. C. S. Bisht laid the foundation stone of the museum, being built at the Beach Road.
Speaking at the event, Naidu said: "I have seen TU 142M aircraft and can proudly say that it is going to inspire the future generations."
The Russian aircraft, which was decommissioned in March at INS Rajali in Tamil Nadu after 29 years, was brought to the city on April 8 to be converted into a Museum.
The aircraft museum will be inaugurated by President Ram Nath Kovind in December.
"President Ramanath Kovind will be coming to Visakhapatnam in the month of December and the TU 142M will be inaugurated by him," Naidu said.(ANI)