The Union Cabinet also decided to place under suspended animation the Andhra Pradesh Assembly whose term is slated to end on June 2.
    
Along with this decision, the Cabinet gave approval to proposals for Seemandhra region, including setting up of three Kendriya Vidyalaya schools and National Institute of Design. The National Institute of Design was earlier planned to be set up in Hyderabad in the Telangana region.
    
Once President Pranab Mukherjee gives his assent to the Cabinet’s decision, Andhra Pradesh will become the second state after Delhi to be placed under the Central rule.
    
The decision to impose the President's Rule in Andhra Pradesh was necessitated by Reddy's resignation as the Chief Minister on February 19 as he was opposed to division of the state.

Governor ESL Narasimhan had recommended Central rule in the state after his resignation.

The bill to create the country's 29th state, by splitting Andhra Pradesh, was passed by the Parliament on February 20.
    
The Kendriya Vidyalaya schools, to be set up in Kadappa, Guntur and East Godavari districts of Seemandhra, will cost Rs 15 crore each, according to Rural Development Minister Jairam Ramesh.

Sources said the National Institute of Design was originally proposed by the Ministry of Industries to be set up in Hyderabad but at Friday's Cabinet meeting, Ministers from Seemandhra insisted that it should be established in "appropriate location" in their region. Finally, Vijayawada was identified for this.

(Agencies)

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