Prime Minister Manmohan Singh is also reportedly reluctant in view of intelligence inputs on security concerns over the move to carve out a separate state from Andhra Pradesh.
Sources also said that the Congress is more in favour of settling the burning issue for it thinks any further delay could cause serious harm to the party. The Congress is in a precarious state in Andhra where it had tasted a big success in the 2009 Lok Sabha polls.
The Congress Working Committee (CWC) and the UPA coordination committee are set to endorse the call and place it for parliamentary approval in the monsoon session starting from August 5. The UPA meet was rescheduled a day before while the CWC also decided to meet the same day, which shows the urgency on behalf of the Congress to solve the Telangana question.
UPA allies like Nationalist Congress Party and Rashtriya Lok Dal have also pitched for the formation of Telangana.
The move is likely to fuel other statehood demands that have been plaguing the Indian state at various parts of the country.