1. Start the process of forming a separate Telangana state immediately. It is not true that a resolution is required to be passed in the state assembly. Please correct me if I am wrong. The centre can do this independently. The cause is genuine. There is no doubt in my mind about this. Please read this (albeit patiently!) to understand the history behind this demand. The people of the region have a genuine grievance and it must be addressed. Hyderabad must be the capital of the Telangana state while Vijaywada or Visakhapatnam can be made the capital of Andhra Pradesh.
2. Put the state under president's rule for a while. This is important because the government under Rosaiah has failed miserably in performing its most important duty - that of maintaining law and order. It is also an open secret that K V P Ramchandra Rao is the one who wields the baton in the home ministry. There are a number of vested interests in the government who are acting against the interests of the people. To bring back the state to normalcy, it is important that there is a neutral government.
3. Bring in the army to ensure peace. The moment you announce that you forming the state, the Andhra region will erupt (stage managed, if you will). This must be quelled forcefully and decisively. No nonsense must be brooked. The government of India must send a stern message to all that the nation cannot be held to ransom by a bunch of hoodlums. What is the problem for the people of the Andhra region to concede a Telangana? What do they have to lose?
4. TRS must cease to exist. I don't say this. They themselves have promised (apparently) that they will merge with the Congress once the state is formed. It will be dangerous to have KCR and his ilk running the state of Telangana. They will loot and plunder its resources like never before and this will sour the dream of the people of the region.
5. Form the 2nd SRC. The moment you announce a Telangana, umpteen other demands will be raised. All those must be examined. The center must constitute the committee to look at these demands in a time-bound manner and the center must refrain from knee-jerk reactions like in the Telangana issue.
I understand that things are not as simple as this. But I feel this might offer a way out of the mess that we have got ourselves into. Mulling on this issue for many days, I have realized that there cannot be a united state for too long. The situation is worsening every day and some decisive action must be taken soon. Some of this might not be palatable to some. This cannot be helped. In a country like ours, you cannot please everyone all the time.
I write this as a neutral person - neither from Andhra nor from Telangana. I write this as a silent spectator who yearns for normalcy in the city he has lived in all his life.