Hey !

You can  surely apply for state quota after applying through AIQ but the necessary condition is that you must not have participated in the second round of central counselling. If you have joined only the first round of central counselling , you can apply for state quota. Participating in the second round of central counselling makes you ineligible for state counselling. So , if you are not getting your preferred college in second round of central counselling , then you are left with no choice under state counselling.

To clear your doubts regarding NEET counselking , follow the given link and open the FAQs section:

https://medicalcounseling.nic.in/UGCounselling