The villages in seven mandals in Khammam district allegedly face submergence due to Polavaram multi-purpose irrigation project.
"The Centre's move is undemocratic and amounts to betrayal of Telangana," the TRS president said, adding that the President should not accept the ordinance.
Telangana will formally come into existence on June 2 as 29th State of the country, following bifurcation of Andhra Pradesh.