Virtually pouring cold water on the Seemandhra lobby, the UPA government is believed to have decided against granting Union Territory status to Hyderabad.
This has been the main demand of the Seemandhra leaders, cutting across party lines.
Even the Union and state ministers from Seemandhra region, who have reconciled to the inevitability of the state's division, have been pinning their hopes on Hyderabad being made Union Territory so that the rights of the Seemandhra people living in the city could be protected.
However, the Group of Ministers (GoM), constituted by the UPA government to work out modalities for formation of Telangana state, is believed to have spiked the idea altogether.
The seven-member panel is finalizing its report this week and it will be placed before the union cabinet at its meeting on November 28. Another disappointing news for Seemandhra lobby is that the draft Telangana bill will not contain any mention about the financial package for Seemandhra.
On the contentious issue of article 371 D, the GoM is likely to recommend retaining of the provision for both the states without any need for constitutional amendment. According to sources, the state Assembly will be given two weeks to voice its opinion. And, the bill will be introduced in the winter session of the Parliament before December 20.
The financial package for the Seemandhra region will not be part of the legislation. The package is a commitment of the Congress but it cannot be made part of the Bill. It is clear that the Centre does not want to make the package a constitutional guarantee.