The Congress core group on Friday evening decided on the creation of a separate Telangana state with the rider that the state capital Hyderabad would be a Union Territory, sources privy to the decision said.
There shall be 12 districts each in both Telangana and Andhra.
The UPA coordination committee will meet soon to discuss the proposal, and the Prime Minister will discuss the party with leaders of main opposition parties.
The Centre will come with an economic package for both the states, but the formal announcement of a Telangana state will be made only after the Congress Working Committee mting.
Home Minister Sushil Kumar Shinde willl make the announcement in Parliament.
Additional security forces will be deputed in coastal Andhra and Rayalaseema regions to counter the backlash against the bifurcation of Andhra Pradesh.
