According to the police, Venugopal Reddy, an MCA student in Osmania university set himself on fire at the university campus on Tuesday, Jan 18.
Reddy wrote in his suicide note that he was frustrated over the delay in formation of separate, adding that he was afraid that it would never turn into a reality.
He requested Congress president to lend her support in the formation of Telangana state.
Following the suicide the Joint Action Committee (JAC) of students and teachers staged a protest with Reddy's body in the campus, demanding a compensation of Rs. lakh to his family.
As a part of the protest the JAC called for a two-day Telangana bandh and appealed to the students across the region to boycott examinations.
Additional police forces have been sent to university.
Reddy's suicide came just a day after the JAC started their 20-days protest march seeking immediate initiation of the process to form separate Telangana.
JAC will conclude their march with a public meeting in Warangal.
Students at Kakatiya University in Warangal, Satavahana University in Karimnagar and Palamuru University in Mahabubnagar boycotted examinations as a mark of protest.
However, despite the JAC and the political parties appeal to conduct examinations after the completion of courses, examinations were held on Tuesday, Jan 19.
Earlier, JAC had called for a two-day protest against the universities' decision to conduct examinations as per schedule.
Educational institutions across the region has been badly affected due to the Telangana agitation, which began in Nov 2009.
Reddy's suicide adds to the list of suicides over Telangana.
On Jan 6, Bhooma Reddy, a multi-media student committed as he was disappointed by the delay in the formation of the separate state.
In his suicide note, Reddy warned the Center of an upsurge in suicides over Telangana, if the government fails to hasten the process.