On December 9, 2009, at 11:30 PM, Mr. P. Chidambaram, Union Minister of Home Affairs announced that the Indian government will start the process of forming a separate Telangana state, upon introduction and passage of a separation resolution in the Andhra Pradesh assembly.[ KCR thus ended his 11 day fast, saying from his hospital bed that this was a true victory of the people of Telangana.
Representatives from Telangana celebrated the central government's decision while those from the Coastal Andhra and Rayalaseema regions (Andhra region) protested.. In fact, within a short time of the Home Minister's declaration, a majority of Andhra Pradesh's legislature submitted their resignations in protest of the separation of Telangana. As of 16 December, at least 147 legislators (including Praja Rajyam Founder Chiranjeevi) and many Members of Parliament resigned in protest of the Government's decision to begin discussions on forming a new state of Telangana. 22 Ministers from the State Cabinet, all from Andhra (Coastal Andhra and Rayalaseema) regions submitted their resignations.
On December 16, media reports confirmed that there was a split in the Praja Rajyam Party (PRP) over the Telangana issue, with its leader Chiranjeevi as well as 16/18 party MLAs opposing the division of Andhra Pradesh while Telangana leaders in the party were unhappy with the shift in the party's views.
On December 23, the Government of India announced that no action on Telangana will be taken until a consensus is reached by all parties. The TRS reacted by calling for another bandh (general strike) on 24th Dec '09, an action aimed at stalling the regional economy.
A JAC (Joint Action Committee) was formed with pro-separation members of the major political parties. There have been reports that members of the JAC have widely divergent approaches on the issue of a separate Telangana. Subsequently, Andhra (Coastal Andhra and Rayalaseema) region MLAs started withdrawing their resignations while MLAs and ministers from Telangana started submitting their resignations, demanding the Centre to take immediate steps to initiate the process of bifurcating Andhra Pradesh.
Symbolic declaration of statehood
The Nava Telangana Party, led by the former home minister of Andhra Pradesh, T Devender Goud, declared Telangana as a separate province within India on November 2, 2008. Konda Laxman Bapuji announced that "We solemnly declare statehood for Telangana on November 2, 2008." Goud released ten pigeons in the air symbolising the ten districts of the region, while he also unfurled the national flag on the occasion. Along with his party activists he was later arrested when they tried to barge into the Andhra Pradesh Secretariat to change the name plate from Andhra Pradesh to Telangana. A scuffle then followed between the police and the NTP workers before the party workers were taken to the Chikkadapalli police station. Other NTP workers soon descended on the scene and staged a dharna to protest against the arrest.