New Delhi, Oct 3 (IANS): The cabinet Thursday formally cleared the formation of Telangana state by breaking up Andhra Pradesh, Home Minister Sushilkumar Shinde announced, adding that Hyderabad will be joint capital for 10 years.

"The cabinet has decided to bifurcate Andhra Pradesh to create the new state of Telangana," Shinde told reporters after a two-hour cabinet meet presided over by Prime Minister Manmohan Singh.

He said a Group of Ministers (GoM) would study the modalities of creating the 29th state in the Indian union.

"The GoM will decide the bifurcation details and sharing of resources," he said. The group will also decide on revenue, water sharing and other issues of the two states - Telangana and Andhra Pradesh.

The minister said Hyderabad would be the joint capital of both Andhra Pradesh and Telangana for 10 years.

Prime Minister Manmohan Singh on his return from US had said that Telangana was "high" on his priority.

Before the meeting began at the prime minister's residence, scores of anti-Telangana supporters protested outside 7 Race Course Road. They also broke the barricades, before police bundled them up.

The government has also asked the state to be on alert in view of protests following the cabinet approval.

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