Mr Prasad made the announcement after a meeting with MPs from Kerala and Tamil Nadu.
The minister said the section between Palghat to Polachi (58 km) and the section between Polachi to Kinattukkadavu ( 21 km) -- both from Madurai Division -- would be added to Salem Division.
''Under the new arrangement, the size of both Salem Division and Palakkad Division would be more or less the same,'' he said at a hurriedly-convened press conference.
Mr Prasad also announced that the inauguration of Salem Division would take place at a ''suitable date'' anytime after September 14.
''The inauguration will be made by Tamil Nadu Chief Minister M. Karunanidhi, and I will preside over the function,'' a beaming Mr Prasad said.