Terming the central government "fascist", Chief Minister K. Chandrasekhara Rao has directed Chief Secretary Rajiv Sharma to send a letter to New Delhi rejecting its direction.
He also decided to convene a meeting of chief ministers of states ruled by non-NDA parties to protest what he calls infringement of constitutional rights of the state.
The chief minister gave direction to the chief secretary Friday night soon after the chief secretary received a letter from the union home ministry asking the state government to hand over law and order to the governor.
According to official sources, KCR, who was camping in his farm house near the city, made it clear that the state can't implement the central governemnt's decision and termed it as a blatant interference in the state's affairs.
KCR, who led the movement for separate Telangana state and became its first chief minister in June, alleged that the Centre is trying to usurp powers of democratically elected government.
According to the letter sent by the Centre, the governor would have powers to review law and order situation in Hyderabad, which has been declared a joint capital of Telangana and Andhra Pradesh.
The governor will also have powers to transfer top police officials. There will be special cell to protect people of Andhra Pradesh living in Hyderabad, to deal with hate crimes and extortions and for security of vital installations.
The union home ministry has quoted the provisions of Andhra Pradesh Bifurcation Act 2014.
The Telangana Rashtra Samithi (TRS) government had been opposing the Centre's proposal to handover law and order to governor on the ground that it is a state subject.
TRS chief has asked his party MPs to raise the issue in parliament Monday.