Can any consulate be selected for H1B interview ???

Hi,

I am currently working in Bangalore, Can I go to a different consulate for my H1B visa interview since the chennai dates are blocked? Is it based on the state of residence?

Yes, you can go to any consulate and not just Chennai.

How can we select different consulate? Do we just change our state of residence to some state in that consulate district? Will there be any problem in the interview?

After you have made the fee payment, you will be required to select a date and location. At that time you can select a consulate of your choice.