Police sealed all routes leading to Indira Park in the heart of the city, where Joint Action Committee (JAC) will be launching the protest later in the day despite police refusing permission for the same.
Police erected barricades and barbed wires on roads surrounding the park to prevent protestors from gathering there.
Policemen and paramilitary forces were deployed in large numbers to stop the protest.
Vehicles are also being checked at the entry points into the city to prevent protestors coming from various parts of Telangana.
JAC, which comprises various parties fighting for Telangana state, has called the protest 'samara deeksha' to demand the centre to make an announcement on Telangana issue by Monday as promised by Home Minister Sushilkumar Shinde last month.
JAC convenor M Kodandaram said JAC leaders would reach the park in a rally for the peaceful protest.
Legislators of Telangana Rashtra Samithi (TRS) would also be reaching the venue from assembly.
JAC leaders alleged that their leaders were either arrested or kept under house arrest in Telangana districts.
Police arrested the activists of TRS and other parties in Warangal, Nizamabad, Medak, Karimnagar, Adilabad and other districts when they were heading for Hyderabad.
A tense atmosphere is also prevailing at Osmania University (OU) in Hyderabad where students plan to take out a rally and lay siege to Raj Bhavan to demand Governor ESL Narasimhan's resignation.
Police sealed the main gate at OU campus to prevent students from coming out.
Hyderabad: Tension prevailed in Hyderabad Sunday as Telangana JAC is determined to defy the police ban to launch 36-hour protest seeking separate statehood to Telangana.
First Published: Sunday, January 27, 2013, 10:16