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Move begins to form new India state
India decides to carve new southern state after protest
Manmohan govt blinks, signals splitting Andhra for Telangana
Process of forming Telangana to be initiated: Centre
India's home minister has announced that the process of forming a separate state in part of southern Andhra Pradesh state will begin soon.
P Chidambaram's announcement came in response to protests by separatists in Andhra Pradesh demanding a separate status for the Telegana region.
It also led a leading politician to call off a protest fast after 11 days.
The demand for a separate state for the underdeveloped and drought-prone Telengana region dates back 50 years.
The region is spread over 10 northern districts of Andhra Pradesh.
Separatists say that economic development in their region has been neglected in favour of the richer and more powerful Andhra region.
K Chandrasekara Rao of the Telangana Rashtra Samiti (TRS) broke his fast after Mr Chidambaram's announcement.
Mr Rao had quit the Congress-led government in 2006, saying the government had not fulfilled its "assurance" for a separate Telangana state.
'Happy'
"The process of forming the state of Telangana will be initiated. An appropriate resolution will be moved in the state assembly," Mr Chidambaram said.
He said the government had asked the authorities in Andhra Pradesh to withdraw cases against leaders, students and others "associated with the present agitation".
Mr Chidambaram appealed to protesters to call off their agitation.
The BBC's Omer Farooq in Hyderabad, the capital of Andhra Pradesh, says that the interior minister's announcement was greeted with celebrations among the protesters.
Supporters of the protest burst crackers, beat drums, danced and sang songs - even outside the hospital where Mr Rao had been admitted during his fast.
Mr Rao said: "I am happy that this is the victory of 35 million people who live in the Telangana region."
Protest rallies seeking a separate state planned for Thursday will now be "turned into victory rallies," organisers said.
Thousands of police were deployed in Hyderabad ahead of the rallies, but after Mr Chidambaram's announcement, security will be relaxed, say correspondents.
More than 400 people died in violence over the demand for a Telangana state in 1969.
India decides to carve new southern state after protest
Manmohan govt blinks, signals splitting Andhra for Telangana
Process of forming Telangana to be initiated: Centre