"I cannot continue to be a member of the council of ministers against my conscience knowing that the Government has caused irreparable damage to the state of Andhra Pradesh," Rao told Prime Minister in his resignation letter.
Rao, 63, represents Eluru constituency of Andhra Pradesh in the Lok Sabha. Elected to the lower house for the first time in 1984, he is serving his fifth term.
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He has served in the state Congress and has been on several parliamentary panels in the past including the crucial public accounts committee.
Rao was upset over the division of Andhra Pradesh for the creation of a separate state of Telangana.
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