Ministers and Congress MLAs from Rayalaseema raised a demand that the new capital of Andhra Pradesh be located in Rayalaseema region, implying Kurnool town.
"We will accept the new state (Telangana) only if we get our share of assured water from the Krishna river and the new capital," they said.
A group of ministers, including T G Venkatesh, Erasu Pratap Reddy, Ganta Srinivas and Pitani Satyanarayana met Chief Minister N Kiran Kumar Reddy on Wednesday afternoon and discussed the fallout of the Congress Working Committee's decision to endorse Telangana.
"We ministers and MLAs from the two regions will meet again on Thursday and decide the course of action," Erasu Pratap Reddy and T G Venkatesh said after the meeting.
"Nothing has happened yet. Only Congress has announced its decision.
We are still hopeful that the process to create Telangana state will not go through," the ministers said.
On the other hand, AP Rural Development Minister Dokka Manikya Varaprasad and Animal Husbandry Minister P Viswaroop said separately that their resignations were not a solution to the issue.
Dokka added there was no need for anyone to resign as the Congress high command had taken the decision.
Meanwhile, Telugu Desam Party president N Chandrababu Naidu asked the Centre to immediately constitute a committee of experts to assess the quantum of funds required to develop a new capital city for Andhra Pradesh after the formation of Telangana state.
"According to our rough estimates, a staggering Rs 5 lakh crore will be required to build a new capital and create necessary infrastructure. The Centre should fund this and develop the new capital on par with Hyderabad," Naidu said.
In related incidents, protestors staged a protest at the camp residence of Union Textiles Minister Kavuri Sambasiva Rao in Eluru and protests were also held at the houses of many state ministers and Congress MPs demanding their resignations forthwith.
"Overall, the situation was under control as we deployed adequate forces in vulnerable areas," an Additional Director General of Police said.