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TRS president K Chandrasekhar Rao and other statehood supporters hailed the Union Cabinet's approval of separate Telangana while Seemandhra leaders and people expressed anguish and anger over the decision.
The pro-united Andhra employees of the state government, who are in the forefront of the agitation against division of AP, called a 48-hour shutdown in Seemandhra (coastal Andhra and Rayalaseema regions) from 6am on Friday.
The TRS President hailed the decision but asked Telangana supporters to be "alert till the Bill for formation of the separate state is passed in both houses of Parliament".
Welcoming the decision, Andhra Pradesh information minister DK Aruna, who hails from Telangana, thanked UPA chairperson Sonia Gandhi, Prime Minister Manmohan Singh and Congress vice-president Rahul Gandhi for formation of the separate state comprising ten districts.
Several other Congress leaders from the region expressed happiness over the Cabinet's decision which comes over two months after the Congress Working Committee gave its nod to bifurcate Andhra Pradesh.
Telangana supporters set off crackers and celebrated the occasion at the TRS office here and elsewhere in Hyderabad, which was the epicentre of the long-drawn statehood stir.
The ruling Congress suffered an immediate blow with three MPs - Undavalli Arun Kumar, Ananta Venkatarami Reddy and Sabbam Hari - quitting the party.
"Congress is stubbornly going ahead with the division of the state, overlooking concerns of people and the ongoing agitation for the last 65 days for a unified state.
"It has adopted a totally undemocratic and despotic attitude on the statehood issue," TDP spokesman Payyavula Keshav said.
But Telugu Desam Telangana Forum leader Motkupalli Narasimhulu welcomed the Union Cabinet's decision saying it was in tune with the TDP's stand, taken in 2008.
YSR Congress President YS Jaganmohan Reddy said the move to decide the state was part of a conspiracy hatched by the Congress and the TDP.
Deputy chief minister Damodara Rajanarasimha, senior ministers J Geeta Reddy and K Jana Reddy hailed the Cabinet's decision and thanked Sonia Gandhi and Prime Minister Manmohan Singh.
Welcoming the Union Cabinet's decision, Andhra Pradesh BJP chief Kishan Reddy demanded that the committee of Union ministers should prepare its report expeditiously and do justice to both the regions.
BJP has long supported the separate Telangana agitation.
CPI state secretary K Narayana said the feeling of insecurity and fear over sharing of resources should be dispelled by the Centre soon.