A huge - and controversial - survey will be held in India's newest state, Telangana, on Tuesday to identify the state's beneficiaries of its welfare schemes.

The Rs 20-crore survey, which will cover all 10 Telangana districts, was sanctioned by court after the state government made it clear that disclosure of bank accounts and other personal details would be voluntary for the participants.

Most offices, schools and colleges will remain closed in Telangana to allow people to participate in the survey.

Andhra groups in the state have alleged that the state-wide survey is aimed at ethnic profiling of people who do not belong to Telangana, an allegation rejected by the KCR government. The survey, the government says, will be done to identify non-Telangana residents who live or work in Hyderabad, the common capital between the two states for 10 years.

On Sunday, Governor ESL Narasimhan mediated a meeting between KCR and Andhra Pradesh Chief Minister N Chandrababu Naidu to ease the strained relations between the two states.

The division of resources like power and water as well as the revenue from Hyderabad have remained the sticking points for the two leaders since the bifurcation of Andhra Pradesh in June.