The government at the centre too seems to be much annoyed by the persistent demand for separate Telangana state. Obviously it is in no mood to create a separate state immediately. At the same time it wants to diffuse the crisis created by resignation of 100 odd elected representatives from all parties, as amicably as possible.

According to highly placed sources, it is learnt that the party leadership was likely to address the contentious issue a few days after the cabinet expansion on Tuesday. "There appears to be three options before the Congress - granting Telangana within a stipulated timeframe, giving special status to Hyderabad and dividing the state, and setting up a second SRC," say the sources. "Under the circumstances, Congress may choose procrastination as the best approach to the issue by settling up of a second SRC," sources reflecting the mood in the party on the issue said.

Reinforcing the thinking of the central leadership on the issue, Congress MP Lagadapati Rajagopal told the media in Vijayawada on Monday that the party high command was all for setting up of a second SRC to look into the demand for Telangana. However, it is to be seen, how the seekers of separate state respond to the centre's move.