While the first amendment deals with resettlement and rehabilitation of those displaced due to Polavaram power project, the second relates to sharing of electricity generated by central units like NTPC between Telangana and Seemandhra.
The two-hour-long Cabinet meeting gave approval to the announcement made by Prime Minister Manmohan Singh for granting special category to Seemandhra region, comprising 13 districts, for five years.
The Planning Commission is the administrative body and the central assistance will be routed through it, he added.
The proposal includes a six-point development package for Seemandhra like tax incentives.
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These will include the four districts of Rayalaseema and three districts of north coastal Andhra to put the state's finances on a firmer footing, he said.
The Bill already provides for a special development package for backward regions of successor state of Andhra Pradesh, in particular for the districts of Rayalaseema and North Coastal Andhra Pradesh.
The Cabinet also decided to bring an amendment under which 85 per cent of the electricity generated by central units will be allocated to the two states as per population and only 15 per cent will be allocated based upon their actual consumption pattern of the last five years.
In the Bill, it is proposed that power will be distributed on the basis of energy consumption in the last five years.
Ramesh said the committees to select a new capital for Seemandhra will start working tomorrow.