Meanwhile Bandhs and protests over the Centre's move to create a separate Telangana state continued for the second day on Saturday, affecting normal life in coastal Andhra and Rayalseema regions of Andhra Pradesh.

Only one incident of arson was reported from Anantpur where a BSNL godown was burned down.

Students have launched fast unto death even as relay fast continued in Visakahaptnam.

Similar hunger strikes were also observed in Kadapa, Kurnool and Chittor districts.

The state transport bus services have been suspended while banks and ATMs were also closed.

The trains are running with 15 to 30 minutes delay.

Meanwhile the Telugu Desam legislators from Telengana region asked the government to immediately move a resolution for separate Telengana.

On the other side government's Chief Whip M Bhatti Vikramarka today appealed to the legislators to withdraw their resignations to help reduce emotional outpouring.

Union Finance Minister Pranab Mukherjee has said that the demand for smaller states does not mean that new states would be created everywhere.

The demand for Telangana is 60 years old.

He said that the centre's nod for a separate Telengana should not be seen as a nod for demands for other state.

Meanwhile the Telugu Desam legislators from Telengana region today asked the government to immediately move a resolution for separate Telengana.

On the other side government's Chief Whip M Bhatti Vikramarka today appealed to the legislators, who have resigned en masse, to withdraw their resignations to help reduce emotional outpouring.

Prime Minister Manmohan Singh on Friday assured a delegation of Congress MPs from non-Telangana regions of Andhra Pradesh that nothing will be done in haste on the creation of a separate state.

The MPs from coastal Andhra and Rayasaleema regions met the Prime Minister for 40 minutes during which which Prime Minister assured them no step will be taken in a haste.

Meanwhile, in a statement late last evening Andhra Pradesh CM K Rosaiah said it would be difficult to have a resolution on the statehood passed in the current session of the legislature.

He said the process relating to the formation of Telangana state will be done only through consensus.

He said he discussed with the high command the issue of Telangana but he had told them that to pass a resolution in the assembly was difficult and he had expressed his 'fears'.

'There was preparation but to my astonishment, to my surprise and anguish, the so-called statement issued by Chidambaram has created a sort of flutter among the youth of coastal areas of Rayalaseema starting from Srikakulam up to Tirupati to Kadapa,' he said.

'I can't assure you that the resolution will be passed because the number is most important. Cutting across the party lines, the agitation will take a turn. So, I expressed my fear to the Congress leadership,' he further added.

On Home Secretary G K Pillai's comment on Hyderabad being the capital of Telangana, he said he thought the Home Secretary had no proper brief.

The Chief Minister said he would not call Telangana Rashtra Samiti Chief Chandrasekhar Rao's fast unto death as political blackmail and similarly he would not bracket the resignation by MPs and MLAs as stage-managed.

He said a resolution would have to be found but with emotions running high, it would be very difficult.

In the meantime Union Finance Minister Pranab Mukherjee on Saturday said that the demand for smaller states does not mean that new states would be created everywhere.

'The demand for Telangana is 60 years old. This does not mean everywhere new states are to be created,' Mukherjee said.

He said that so far Telangana was concerned Home Minister P Chidambaram had made a statement that 'there were stages for formation (of a state). These are preliminary stages.'#