hello aspirant,

YES, You are eligible to participate in the State Counselling if you did not wish to participate in the All India Counselling. This is because, It is not mandatory to participate in both all India counselling and state counselling, one is free to participate in any of them or both of them as per their wish.

Although, its not mandatory for you necessarily appear for AIQ counselling, However, it is suggested that you do as they account for 50% of the seats in every government college (except J&K).

Further to know more details on All Insia Counselling, and State Counselling, you can follow the below mentioned link to know more : https://medicine.careers360.com/articles/neet-cut-off

I hope that this will help.