The President has given his consent to Andhra Pradesh Reorganisation (Amendment) Bill yesterday making it an Act, official sources said.
The Bill was passed by parliament last week.
The project involves relocation of about 50,000 families especially in Khammam, East Godavari and West Godavari districts in Andhra Pradesh, besides 2,000 families in Odisha and Chhattisgarh.
Polavaram project has been accorded national project status by the Centre. The dam across the Godavari river is under construction and located in West Godavari district and East Godavari district in Andhra Pradesh, with its reservoir spreading to parts of Chhattisgarh and Odisha.