Buckling to pressure, the Centre on Wednesday conceded to the demand for a separate Telangana state for which the process will be initiated and an appropriate resolution will be moved in the Andhra Pradesh assembly.
The decision was taken at a late night meeting Prime Minister Manmohan Singh had with Andhra Pradesh Chief Minister K Rosaiah after two rounds of consultations in the Congress Core Committee with Sonia Gandhi and senior cabinet colleagues.
"After these consultations, I am making this statement. The process of forming the state of Telangana will be initiated. An appropriate resolution will be moved in the state Assembly," Home Minister P Chidambaram told journalists late in the night.
The Centre and the Congress party were forced to take such a step after further deterioration in the health of TRS chief K Chandrasekhar Rao, whose fast-unto-death entered the 11th day and tensions simmered in the entire Telangana region apprehending the worst.
Though Chidamabarm refused to specify when the resolution would be moved, it is expected to be tabled on Thursday in the state assembly.
For creation of the state, both the houses of Parliament have to pass a bill.
Chidambaram said the central government was concerned about the health of Rao and requested him to withdraw his fast.
He said the chief minister has been requested to withdraw cases filed against leaders, students and others after November 29 this year, when Rao began his fast-unto-death in Khammam.
Rosaiah, he said, has informed the government that he will take necessary steps.
The home minister also asked students to withdraw their agitation.
Chidambaram said the government has been concerned over the agitation in Telangana in the past few days.
"We have held extensive consultations. The prime minister was away. He returned yesterday (Wednesday) and after that we had consultations with the chief minister," the home minister said.
Telangana region accounts for 119 of the 294 assembly seats in Andhra Pradesh and 17 of the 42 Lok Sabha seats.
The TRS, which was formed in 2001 on the plank of a separate Telangana by Rao after he quit the Telugu Desam Party, was part of the United Progressive Alliance after the 2004 elections. It parted ways with the Congress in 2006, saying the UPA was doing nothing on its demand.
While in the 2004 elections his party won five Lok Sabha seats, in 2009 it managed only two seats and suffered severe erosion in the assembly elections too.
The decision came on a day when in the Lok Sabha leaders cutting across party lines expressed concern over the health of Rao and urged for immediate intervention by the Centre.
The Centre's decision also comes on the back of a strong demand from 15 Congress Members of Parliament belonging to Telangana region who met Gandhi and demanded creation of Telangana state.
Earlier, Rosaiah told the media that it was for the Centre to take a decision -- whether amalgamation or bifurcation -- factoring in all issues.
With the fast entering 11th day, 55-year-old Chandrasekhara Rao's health had developed protein malfunction after he refused even intravenous fluids. But in the afternoon, doctors said there was a "marginal improvement" in his condition after he agreed to have intravenous fluids and to be put on saline drips.
Tension mounted in the state capital and Telangana region ahead of the "march to Hyderabad" which resembled a fortress as additional police forces were deployed and hundreds of activists were rounded up to prevent any protests.
Rosaiah is expected to go straight to the Nizam Institute of Medical Sciences to convey to Rao the decision of the Congress to table a resolution in the state assembly and to appeal to him to withdraw the fast.
