On Switch the vlan goes to administrative down state if two or more VLANs are configured, What could be the issue?

The Cisco Catalyst Layer 2 switches such as 2940, 2950, 2900XL, and 3500XL can support only one Switch Virtual Interface (SVI) in the UP state at any one time. If additional VLANs are created, they can pass traffic without any issues. However, the SVI for new VLANs will not be UP. This is simply a hardware limitation in the Layer 2 Switches.