The development is viewed as a setback to Chief Minister N Kiran Kumar Reddy as the proposed legislation is aimed at giving legal status to the ambitious "Bangaru Talli scheme" announced recently for all-round development of women.
According to sources, the chief minister conceded to the demand for constitution of a Cabinet Sub-Committee to look into the proposed legislation before it is brought before the Legislature.
"It now looks unlikely that the proposed Bill will come up in the Budget session that resumes its sitting ... On June 10 as the Cabinet Sub-Committee will have very little time to draft it afresh," a source said.
Health Minister D L Ravindra Reddy was dropped from the Cabinet for criticising the Bangaru Talli scheme among other things.
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State Congress president and Transport Minister Botsa Satyanarayana, who was among those who expressed displeasure over the scheme, raised the issue at the Cabinet meeting held after a gap of three months.
He was supported by Panchayat Raj Minister K Jana Reddy, sources said.
Some other ministers too joined the issue and suggested that the proposed legislation be referred to a Cabinet Sub-Committee.
Meanwhile, the chief minister told his colleagues that henceforth the Cabinet would meet every fortnight unlike once in three months which became a norm since Reddy became chief minister in November 2010.