The decision was taken during a meeting of the state Cabinet chaired by Chief Minister Akhilesh Yadav, an official spokesman said here.
"The decision to rename the district was taken on the recommendation of the District Magistrate," the spokesman said.
It was also decided to give 10 per cent discount on sale of khadi cloths for 108 days with effect from November 1.
The Cabinet also approved a proposal to launch Swachh Bharat Mission (rural) in place of Nirmal Bharat Abhiyan. It was decided that for construction of toilets, the state's share will be increased to Rs 3,000 per unit.
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The list of beneficiaries will be released after the approval of the CM, he added.
The Cabinet also decided to exempt movie 'Chaar Sahabzaade' from entertainment tax.
It was also decided to reduce Value Added Tax on computer parts from existing 12.5 per cent to 4 per cent, the spokesman said.