Union Home Minister Sushilkumar Shinde on Monday said the process to form a new state of Telangana would be initiated by presenting a cabinet note or resolution in the next 20 days.
"The resolution will be brought before the union cabinet within 20 days," Shinde said.
The cabinet, after giving its approval to Telangana, will form a Group of Ministers (GoM) to address the concerns of all regions on sharing water, land, electricity and revenue.
This is likely to be followed by a resolution being sent to the Andhra Pradesh Assembly over the formation of the new state.
With the approval of both Houses of the Parliament and the President´s assent, Telagana will become the 29th state of India.
The announcement was made by Shinde on a day when the Lower House of the Parliament witnessed ruckus over the same issue.
In the Lok Sabha, Telugu Desam Party (TDP) and Congress MPs from Andhra Pradesh created a ruckus on Monday, demanding an united Andhra Pradesh.
Speaker Meira Kumar adjourned the House till 2 pm and suspended nine members- four of TDP and five Congress MPs from Andhra Pradesh for creating "grave disorder".
The action was taken under rule Rule 374(A) of Rules of Procedure of the Lower House of the Parliament.
According to the rule, a member after being named by the Speaker stands "automatically suspended from the service of the House for five consecutive sittings or the remainder of the session, whichever is less."
The rule also states: "Provided that the House may, at any time, on a motion being made, resolve that such suspension be terminated."
This rule is applied in the event of "grave disorder occasioned by a member coming into the Well of the House or abusing the rules of the House persistently and willfully obstructing its business by shouting slogans."