The state leadership of the Congress is stonewalling Omar's cherished scheme of creating some 700 new administrative units in the state ahead of the April-May Lok Sabha polls and the scheduled assembly elections in October- November this year.
This has set the two parties on a collision course and efforts to resolve the stand-off have failed despite a meeting attended by AICC general secretary in charge of the state Ambika Soni, state PCC chief Saifuddin Soz, Union minister Ghulam Nabi Azad and Omar here on Monday.
NC sources said an upset chief minister was thinking of stepping down because the state Congress appeared determined to "sabotage" the scheme that it feels will benefit NC in the upcoming elections.
If Omar, who has headed the coalition that has ruled for the last five years, resigns, the NC may push for advancing the assembly polls and holding them along with the Lok Sabha elections. His resignation may pave the way for a spell of Governor's rule in the state.