The creation of Andhra State in October, 1953 strengthened the general demand for linguistic States. Andhras had also long cherished demand for the formation of Visalandhra, since the people of Hyderabad State were unanimous in their demand for the trifurcation of their State. Andhras hoped that the outlying Telugu areas in Orissa, Madhya Pradesh, Mysore and Madras be incorporated in the greater Andhra.
The States Reorganization Commission, with Syed Fazl Ali as the Chairman, set up by the Government of India in December 1953, who heard the views of different organisations and individuals, was though convinced of the advantages of Visalandhra, however, favoured the formation of separate State for Telangana. This report of the S.R.C. led to an intensive lobbying both by the advocates of Telangana and Visalandhra. The Communists reacted sharply and announced that they would resign their seats in the Hyderabad Legislative Assembly and contest elections on the issue. In the Hyderabad Legislative Assembly, a majority of the Legislators supported Visalandhra.
The Congress High Command favoured Visalandhra and prevailed upon the leaders of the Andhra State and Telangana to sort out their differences, who, thereupon, entered into a `Gentlemen’s Agreement’. One of the main provisions of the Agreement was the creation of a `Regional Council’ for Telangana for its all round development. The enlarged State by merging nine Telugu speaking districts of Adilabad, Nizamabad, Medak, Karimnagar, Warangal, Khammam, Nalgonda, MahabubNagar and Hyderabad, into Andhra State with its eleven districts of Srikakulam, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Nellore, Chittoor, Cuddapah, Anantapur and Kurnool, totalling 20 districts* was named `Andhra Pradesh’ with its capital at Hyderabad. It was inaugurated on the 1st of November, 1956 by Jawaharlal Nehru. Neelam Sanjiva Reddy became the first Chief Minister of Andhra Pradesh, who later rose to the position of the President of India. Burgula Ramakrishna Rao, last of the Chief Ministers of Hyderabad State was elevated to the Office of the Governor of Kerala. C.M.Trivedi continued to be the Governor of Andhra Pradesh.
As stated above, on the formation of Andhra Pradesh on the 1st of November 1956, Neelam Sanjiva Reddy became the first Chief Minister of the new State. Consequent on his becoming the President of the All India Congress Committee, he resigned the post of Chief Minister on 10th June, 1960 and was succeeded by D.Sanjivaiah, a talented young man from the Scheduled Castes. After 1962 General Elections, Sri N.Sanjiva Reddy again became the Chief Minister of the State on 12th March, 1962. But, he relinquished the Chief Ministership in 1964 on moral grounds consequent on the adverse verdict of the Supreme Court in Kurnool Transport Nationalisation case. He was succeeded by Sri Kasu Brahmananda Reddy on 29th February, 1964. He was in the office till 30th September, 1971. His long innings witnessed development of the city as well as the State in many ways. True the Telangana agitation erupted during his time paved way for rectification of defects and implementation of measures to develop Telangana.