The creation of the new state of Telangana was based on the linguistic basis, as outlined in the Andhra Pradesh Reorganization Act, 2014.

Linguistic basis
Telangana was created as a new state primarily on the basis of linguistic considerations. The Telangana region, comprising mainly Telugu-speaking people, felt a sense of linguistic and cultural identity separate from the rest of Andhra Pradesh. This led to demands for a separate statehood to protect the interests and promote the development of the Telangana region.

Historical Context
The demand for a separate Telangana state gained momentum in the 1950s and 1960s during the 'Telangana Movement'. This movement was primarily driven by the feeling of neglect and discrimination faced by the people of Telangana in terms of political representation, economic development, and overall welfare.

Linguistic Reorganization of States
The linguistic reorganization of states in India played a significant role in the creation of Telangana. The States Reorganization Act of 1956 aimed to reorganize states based on linguistic and cultural homogeneity. Telangana's linguistic distinctiveness from the coastal Andhra region was a key factor in the decision to create a separate state.

Socio-Economic Disparities
The socio-economic disparities between Telangana and the rest of Andhra Pradesh also fueled the demand for statehood. Telangana region felt that its resources were being exploited for the benefit of the more prosperous Andhra region, leading to feelings of marginalization and injustice.

Conclusion
In conclusion, the linguistic basis was the main foundation for the creation of the new state of Telangana. The linguistic and cultural identity of the Telangana region, coupled with historical grievances and socio-economic disparities, played a crucial role in the formation of the state.