Two Indian ministers, belonging to a regional party, have resigned from the federal government.
Rao says people of Telangana have "lost faith" in the government
K Chandrasekara Rao and A Narendra of the Telangana Rashtra Samiti (TRS) said they were unhappy with the federal government, led by the Congress party.
The regional party, which has five MPs in the parliament, has also withdrawn support to the ruling coalition.
Analysts say this will not threaten the government as the coalition has a comfortable majority in the parliament.
TRS has been demanding a separate state status for the Telangana region in the southern state of Andhra Pradesh.
The two ministers said the government had not fulfilled its "assurance" for a separate Telangana state.
The resignation letters of labour minister Mr Rao and junior rural development minister Mr Narendra have been sent to the prime minister, a party spokesman told the Press Trust of India.
"There cannot be any solution to the problems faced by Telangana people within the integrated state of Andhra Pradesh," Mr Rao said.
He said Mr Rao has launched a hunger strike in the capital, Delhi, from Wednesday to press the demand for a separate Telangana state.
The Telangana region is spread over nine of the 23 districts of Andhra Pradesh and the separatists say economic development in their region has been neglected in favour of the richer and more powerful Andhra region.
The demand for a separate state for the underdeveloped and drought prone region dates back 50 years but has been rejected by several federal governments.