 After Potti Sreeramulu's death, the Telugu-speaking area of Andhra State was carved out of Madras State on 1 October 1953, with Kurnool as its capital city.On the basis of the gentlemen's agreement of 1 November 1956, the States Reorganisation Act formed Andhra Pradesh by merging Andhra State with the Telugu-speaking areas of the already existing Hyderabad State.Hyderabad was made the capital of the new state.