New Delhi/Bangalore, Oct 8 (IANS): The union cabinet Tuesday approved a notification to set up a development board for the Karnataka-Hyderabad region in the northern part of the state.

A special status was granted to "the Karnataka-Hyderabad region comprising Bidar, Bellary, Gulbarga, Koppal, Raichur, Koppal and Yadgir districts", an official statement here said.

The seven districts in the north-east region of the state were part of the erstwhile Hyderabad state under the Nizams till 1948 and were subsequently merged with the then Mysore state in 1956 under the reorganisation of states on linguistic basis.

"Under the new Article 371J, the president is empowered to entrust the governor to establish a separate board to ensure equitable allocation of funds to meet the development needs of the region in the state budget," the statement said.

The Constitution (98th amendment) Bill was passed by parliament Dec 20, 2012.

The new law will promote employment and reservation in educational and vocational training institutions located in the region.