Inching towards an amicable settlement, the Telangana Congress leaders have mooted a proposal to suggest the Centre on the status of Hyderabad in the event the state is bifurcated. Under this proposal, Hyderabad would be a centrally administered district till such time as the new capital for the Seemandhra region is ready.

The Telangana Congress sources said, this proposal has been formulated incorporating certain demands of the Seemandhra leaders to allay the apprehensions of those who have properties and business establishments in Hyderabad. T Congress leaders also think that this is a workable alternative on the status of Hyderabad among a bouquet of suggestions. A T Congress delegation, which is scheduled to go to New Delhi on September 25, is expected to place the proposal before AICC general secretary Ghulam Nabi Azad, who is negotiating with the Congress leaders of all regions on the separate state issue.

Elaborating on the suggestion, the sources said Hyderabad district will become a combined capital for the both regions for an agreed period of time. "As per the new suggestion, Hyderabad will be a central administered district for 10 years during which period it will serve as the capital for both Telangana and Seemandhra. Simultaneously a capital will be built for Seemandhra. After 10 years, Hyderabad will automatically become a district in Telangana and Seemandhras will go to their new capital," the sources told.

According to sources, the central administration in Hyderabad district would dispel the misgivings about possible discrimination against or attacks on the Seemandhras. This was, the sources said, a climb down for the T Congress leaders as they had earlier said that the issue of Hyderabad was non-negotiable. "Since some MPs from Seemandhra genuinely want the division of the state, we are making this suggestion for an amicable settlement," the sources said.

Meanwhile, the Telangana MPs, led by K Keshava Rao, convener of the Telangana Congress steering committee, condemned the lathicharge, lobbing of tear gas shells and arrests of 'Sakala Janula Samme' agitators in the region, especially at Osmania University. They demanded the immediate withdrawal of forces from the university and release of all those arrested across the region on Monday.

MP Manda Jagannatham took strong objection to the way both the CM and governor were treating the Telangana movement. "The governor and CM are trying to mislead the Centre by forwarding 'concocted' reports. As constitutional heads both the governor and CM should behave responsibly while dealing with a democratic movement," Jagannatham said.