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L stands for local area. Local area is nothing but determining whether the Candidate belongs to Telangana or Andhra.
Districts of Adilabad, Hyderabad, Rangareddy, Karimnagar, Khammam, Medak, Mahaboobnagar, Nalgonda,
Nizamabad and Warangal are regarded as the Osmania University Local. Area of Telangana
Districts of Srikakulam Vizianagaram, Vishakapatnam, East Godavari, West Godavari, Krishna, Guntur and Prakasham are regarded as the Andhra University Local area of Andhra Pradesh
Districts of Ananthapur, Kurnool, Chittoor,Çuddapph and Nellore are regarded as the Sri Venkateswara University Local Area of Rayalaseéma
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To be considered locale to a particular area:
For more clarity on this, please read the page 4 of http://www.knruhs.telangana.gov.in/sites/default/files/2020-12/MBBS%20BDS%20CQ%20ADMISSIONS%20NOTIFICATION%20FOR%20FIRST%20PHASE%202020-21_0.pdf
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