Telangana fallout: PM announces special category status for Seemandhra

"This development package will be on the lines of the KBK (Koraput-Bolangir-Kalahandi) Special Plan in Odisha and the Bundelkhand special package in Madhya Pradesh and Uttar Pradesh," he said.

The prime minister assured the house that further amendments, if needed, would be carried out to facilitate smooth and full rehabilitation and resettlement for the Polavaram project.

Under the bill, the government has already provided for national status to Polavaram project, coming up across Godavari in coastal Andhra.

Manmohan Singh also declared that the appointed day for the formation of the new state will be so fixed in relation to the notified date so as to enable preparatory work relating to personnel, finance and distribution of assets and liabilities to be completed satisfactorily.

As BJP leaders raised concerns about the possible revenue deficit in Seemandhra, the prime minister said the resource gap that may arise in the first year will be compensated in the regular union budget for 2014-15.

"I hope these additional announcements will demonstrate our steadfast commitment to not just the creation of Telangana but also to the continued prosperity and welfare of Seemandhra," he added.