The two leaders discussed water sharing and other bilateral issues concerning the two states for more than an hour, sources said, adding that talks would continue on addressing pending issues.
The meeting took place after the customary 'At Home' hosted by the Governor at Raj Bhavan on the occasion of Independence Day.
Telangana and Andhra Pradesh had held talks several months ago to resolve contentious issues following a bitter bifurcation of undivided Andhra Pradesh in 2014. However, no talks have taken place after preliminary discussions.
Besides Naidu and Rao, Union ministers Bandaru Dattatreya, Y S Chowdary, former Governor of Tamil Nadu K Rosaiah, ministers, actor-turned-politician and Jana Sena Party founder Pawan Kalyan and several other leaders from both the states were present on the occasion.
Badminton Chief National Coach Pullela Gopichand, veteran cricketer VVS Laxman, shuttler Kidambi Srikanth also attended the event at Raj Bhavan.
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