Official sources said that body which will be the second of its kind since independence could help in sensitive siisue related to formation of new states and offer recommendation.
The body will also be instrumental in settling the Telangana issue.
Situation in Telangana sprung out of control ever since the announcement for separate Telangana was made on Dec 9 by home minister P Chidambaram.
Earlier in the day, TRS called for 48-hour bandh in protest against the Center's decision to put Telangana state on hold, stating that the situation in Andhra Pradesh has changed considerably after the announcement of Telangana state.
According to sources the demands for Gorkhaland, Bundelkhand, Harit Pradesh (both Uttar Pradesh) and separate states from Northeast will go into the new SRC.
However, the setting up of SRC is likely to take time taking into account the law and order issue which is likely to arise.
The commission will reportedly be headed by the a retired Supreme Court or High Court judge.