The ordinance, cleared by the Union Cabinet on Tuesday, aims to facilitate smooth resettlement and rehabilitation on part of Polavaram multi-purpose project.
The amendment will enable land for land in the same revenue division where people will be displaced.
Politicians from Khammam district of Telangana region were demanding that Polavaram submergence areas in Bhadrachalam revenue division should not be merged with Seemandhra region.
Earlier today, Parliamentary Affairs Minister M Venkaiah Naidu said the Cabinet has approved the recommendation of the Home Ministry.
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Responding to posers on Telangana Chief Minister-designate K Chandrasekhar Rao's bandh call to protest the transfer of villages to Seemandhra, he said, "There is no controversy."
"Please understand. The issue was decided earlier. The Cabinet had decided on Pollavaram project. The decision was taken long back. It was approved by many parties. Congress said they will go for ordinance, they did not bring. Keeping the broad unity of Parliament, the decision was taken.