The union cabinet Friday decided to impose president's rule in Andhra Pradesh, which is set to be divided to create a separate Telangana state.
The cabinet, which met at Prime Minister Manmohan Singh's residence, also decided to place the Andhra Pradesh assembly in suspended animation.
N. Kiran Kumar Reddy Feb 19 had resigned as chief minister and also quit the Congress to protest parliament passing the Telangana bill.
Governor E.S.L. Narasimhan had accepted the resignation and asked him to continue as caretaker chief minister till alternate arrangements were made.