Here are the 10 big developments in this story:
Union minister Chiranjeevi has resigned; another, Pallam Raju, says he has decided to quit the government as well. Mr Raju said he offered to resign last night but was urged by the PM not to act in haste. Today, he said, he will submit his resignation to the PM. (Union minister Pallam Raju to resign over Telangana decision)
Telangana is one of the three regions of Andhra Pradesh. The other two - the 13 districts of Seemandhra as the Rayalaseema and coastal Andhra regions are jointly called - are in total shutdown. (Live updates)
A 48-hour bandh began this morning to protest against the bifurcation of the state. Shops, schools and colleges are closed; several important highways are blocked.
All major routes leading to Tirupati and the famous Tirumala temple have been barricaded by protestors. (Roads to Tirupati blocked as part of anti-Telangana state protests)
Congress MP L Rajagopal, who is from Vijayawada, has said he will move the Supreme Court challenging the government's decision to bifurcate Andhra Pradesh, reports the Press Trust of India. (Will fight Telangana state in Supreme Court, says Congress MP)
Chief Minister Kiran Kumar Reddy, who belongs to Seemandhra, will hold an emergency meeting with his ministers and legislators from the region.
Jagan Mohan Reddy's YSR Congress, which has been fighting the plans to split the state, has also called for a 72-hour bandh across Andhra Pradesh. He has also announced that he will sit on an indefinite fast from tomorrow.
The Cabinet's resolution on the creation of Telangana, which was cleared last evening, will be sent to President Pranab Mukherjee, with the recommendation that he refer it to the Andhra Pradesh state legislature for feedback, though the Centre is not obliged to accept its opinion.
Seemandhra ministers have said they will ensure that the resolution is not passed by the state legislature.
Hyderabad will start out as a shared capital for 10 years, after which it will belong to Telangana, said the Home Minister. Who gets to keep the prosperous IT hub has been a major headline of the controversial decision.
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