It is the first bill to be tabled in the House by the BJP-led government.
Amid disruptions by Trinamool Congress members who were shouting against the Railway Budget, the Telangana Rashtra Samithi (TRS) MPs too joined in protesting against the bill which seeks to replace an ordinance promulgated in May by the Narendra Modi government.
Amid din, Home Minister Rajnath Singh introduced the Andhra Pradesh Reorganisation (Amendment) Bill, 2014, in the Lok Sabha.
Bhartruhari Mahtab (BJD) and Vinod Kumar Boianapalli (TRS) opposed the introduction of the Bill saying it should be withdrawn to safeguard interest of tribal people.
TRS and BJD has been opposing the ordinance for a clause that allows transfer of some villages in the Bhadrachalam area to Andhra Pradesh.
Soon after the House resumed at 1410 hours after lunch, TMC members trooped into the Well shouting slogans -- "rail budget vapas lo, Prime Minister hai hai".
As discussions for introduction of the Andhra Pradesh Reorganisation (Amendment) Bill was initiated, TMC MPs tore the Railway budget and continued to disrupt the House.
Soon they were joined by TRS members who demanded that the amendment to the Bill be withdrawn.
The amendment bill aims at facilitating smooth resettlement and rehabilitation on part of the 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.
It amends Section 3 of the main Act which seeks to create a separate State of Telangana.
Telangana became the 29th state of the Indian Union on June 2.