The states can issue guidelines on relaxations in the lockdown, according to their requirements, but these will have to be within the rules notified by the Home Ministry, sources in that ministry told CNBC-TV18.

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States cannot dilute Home Ministry guidelines, and only can issue orders for stricter restrictions, the sources said, adding that the respective district adminstrations would decide on the easing of restrictions, depending on the ground situation.

Late last night, the Home Ministry had issued a notification allowing shops to reopen with 50 percent of their staff, except shops inside malls and in market complexes within municipal limits. The relaxation in lockdown restrictions will not be applicable to hotspots and containment zones.

The sources said discussions with states on relaxing the lockdown were happening continuously.

People will be allowed to go to shops provided social distancing, wearing masks and other personal/social hygiene norms are observed, the sources said.

States are still awaiting clarity on opening restaurants and liquor shops. The Cabinet Secretary will shortly hold a meeting with all state chief secretaries and Director Generals of Police to clarify on the notification by the home ministry on reopening of shops.

Sources in the Tamil Nadu government have said restrictions on shops and establishments were unlikely to be lifted. They said the lockdown will remain in effect till May 3.

Five districts in TN have already been told to go on "intense lockdown" from April 26 to April 29 . In these districts--Chennai, Madurai, Tiruppur, Coimbatore and Salem--residents have been told to stay at home, and that essentials would be delivered to them.

All grocery stores, which were earlier allowed to stay open till 1 pm have been told to shut, and only wholesale stores have been allowed to function.