Officials of the Andhra Pradesh government are racing against the time to complete the process of division of assets, liabilities and the staff as the date on which the two new states would be formally born -- June 2 -- is nearing.

The state government constituted several committees to supervise the division process after the passage of the Andhra Pradesh Reorganisation Act by the Parliament in March.

As the model code of conduct for elections came into force from March 5, the task of overseeing the division process fell to Governor E S L Narasimhan and Chief Secretary P K Mohanty.

TDP secured majority in Seemandhra, while TRS emerged as majority party in Telangana in the Assembly elections. The officials have briefed TDP chief N Chandrababu Naidu and TRS president K Chandrasekhar Rao, who are expected to become the Chief Ministers of the respective states.

Naidu, who met with Chief Secretary and other officials again today, asked them to study the various ways of resources mobilisation and prepare a comprehensive plan as the government of (new) Andhra Pradesh would start off with a high-deficit budget, sources said.

He also asked the officials to study the benefits that would accrue to the new state by the conferment of special status by the Centre, sources said.

Chandrasekhar Rao had categorically said yesterday that the government employees with `Andhra domicile' would not be allowed to work in Telangana after he takes over as Chief Minister.

His statement drew sharp criticism from the Seemandhra employees union leaders.

The stamps and registration department said today that its services would not be available from 6 pm on May 30 to 10 am on June 2 as separation of the Central Server is underway.