Any new state should look into the natural resources, sustainability and governance.

PROs: Major cons of this decision is it will set a precedent for several popular movements and division into various other states. Political parties like congress will use these popular sentiment to try and gain more seats(like congress in this case) . There will be disputes over water . The newer state will need a new capital and thus lot of resources . Politicians are the same in the newly formed state and hence governments will be as corrupt or even worse. Smaller states good for India because of easy management, better governance and higher growth. Jharkhand, uttarakhand, chattisgarh all formed in 2000 are doing well.

The Seemandhra region is expected to see a growth in the number of engineering colleges with managements run by people from the Andhra region trying to get a firm foothold there. A growth in the number of central universities and national technological institutes is also predicted in the region.

Also of course, there shall be a huge job creation process thanks to the setting up of a new administration. And Telangana shall get its precious water resources, giving a fillip to agricultural activities there.
if there is a separate Telangana which is a power-starved state, the total net electricity production in India will be the same. Here's where Seemandhra's excess power can help (it generates 10,500 MW in comparison to it's demand of 9,000 MW). Besides in the long run, Telangana can develop it's own power generation facilities

CONs

Bifurcation of the state is expected to result in several engineering colleges in theTelangana region facing a slow death, though there will be a slight growth in the number of intermediate colleges in the region, according to educationists.
About 70 per cent of the catchment area of the Krishna and close to 80 per cent of the catchment area of the Godavari is located in the Telangana region. Across the world, water distribution and sharing schemes between two areas is calculated on the basis of the percentage of the catchment area that lies in the region. Other factors that influence water-sharing accords is the population of a given region, the projected usage of water for industry and the domestic population, and the physical contours of the region through which the river flows.

Advantages 1)getting seperate telangana would give them privacy of handling thier things own 2)they need not depend on other regions 3) when gov doesnt satisfy their needs in the whole state they to get satisfied with a seperation 4)Following divide and conqour method would results best in any formulae... Disadvantages 1) Its easy for other states like karnataka and tamilnadu to overtake the development of AP 2) Having less MP seats in a state would results less authority in the central government 3) Moreover living together is better than seperate..would get down...... Other financial matters are seen by intelligence....

Advantages : 1. They have their own government of their liking which they sometimes can't when it is big state. 2. Changes in administration are easy for smaller states 3. Judiciary is more easy and understanable 4. Overall it is just like a small Family Disadvantages: 1. If some natural problem (Flood, drought ) comes they have to deal themselves. 2. Need to pay for resources which were earlier available in big state 3. Just like a small and new family it lacks experiences and need to take everything from start.