The Centre has decided the Foundation Day or Appointed Day for Telangana to be on 2 June 2014, said the Union Home Ministry late on 4 March. The new state will start functioning from that day itself, a spokesperson of the Home Ministry said. Telangana will become the 29th state of the Indian union of states. 

The Union Home Minister Sushil Kumar Shinde decided the date after consulting with President Pranab Mukherjee during the day. The Ministry has already issued a gazette notification following an approval of the country's Parliament on 20 February. For both the two new states- Telangana and Seemandhra, the residual Andhra Pradesh, Hyderabad will remain as a joint capital for 10 years under the security of the State Governor, say media reports.

The Union government has decided to give special categoty status to Seemandhra for five years, till it develops its own capital and other immediate governing necessities. A six-point development package, including tax exemptions and other sops, has also been announced to Seemandhra by the Centre. 

Presently, the united Andhra Pradesh is under the President's rule following the resignation of Chief Minister N Kiran Kumar Reddy. Governor E S L Narasimhan has taken charge of the State's rule. The President's rule may continue in the State till respective state governments are formed in both Telangana and Seemandhra.

The Election Commission of India has announced the dates for Assembly elections in AP in two phases. The Assembly polls will be held in Telangana region on 30 April and in Seemandhra on 7 May.

The EC made it clear that the assembly poll schedule in Telangana has nothing to do with the Appointed Day announced by the Centre.

"Once the elections are held to assembly and Lok Sabha constituencies in AP, the elected MLAs and MPs will remain in the respective new states- Telangana and Seemandhra, yet to be carved out formally," Sampath stated.