Even as the congress party has clarified that the proposal of the second SRC is not related to the Telangana issue, speculation is rife that the Centre will announce its decision next week on the demand for division of AP for formation of Telangana state.

The Government is said to be considering the options 4, 5 and 6 of the Justice Sri Krishna Committee recommendations for finding solution to the Telangana issue.

Justice Sri Krishna committee in its fourth option has suggested that the geographical jurisdiction of Hyderabad should be extended further while both Seema Andhra and Telangana areas should build their separate state capitals after the division. The option is meant to make Hyderabad reachable to the three regions.

The fifth option is that Hyderabad should be made capital of Telangana state and a new state capital should be developed for the Seema Andhra region after the division. However, till the new capital city is developed for Seema Andhra area, Hyderabad should also be allowed to function as its capital. But, Justice Sri Krishna has said that the option will have serious repercussions during implementation.

The sixth option is that the state should be kept united but a statutory council should be created for the development of the Telangana region. However, the congress core committee is not disposed towards the sixth option, according to sources.

The Prime Minister Dr Manmohan Singh will be back in India on Saturday and soon after his return, the Centre will take a decision on the issue. The decision will be announced next week.

Meanwhile, PCC chief Botsa Satyanarayana held several rounds of discussions on the issue with Central leaders Pranab Mukherjee, Chidambaram and Ghulam Nabi Azad.