Hyderabad, Jul 12 (IANS): Congress leaders from Telangana region Tuesday rejected the proposal to set up a second States Reorganisation Commission (SRC) and said they would settle for nothing less than a separate Telangana state. However, they offered to have discussions on Hyderabad.

"We just reject the proposal of second SRC," senior leader and MP K. Keshava Rao told reporters.

He, however, said they were ready to discuss the two other options being reportedly considered by the central government.

He was reacting to reports that New Delhi was considering three options -- carving out Telangana state within a stipulated timeframe, keeping open the issue of Hyderabad while dividing the state, and setting up a second SRC.

"Let them announce Telangana (state), we are prepared to discuss Hyderabad," he said but did not elaborate.

A section of leaders from Andhra and Rayalaseema regions want special status to Hyderabad in the event of bifurcation of Andhra Pradesh. There are also suggestions that Hyderabad be made joint capital of Telangana and Andhra states for five to 10 years.

The MPs, who have submitted their resignations in support of separate state, held a a meeting Tuesday to finalise preparations for two-day fast they are launching Wednesday.

The state legislators, who have also quit last week, will participate in the 48-hour hunger strike at Indira Park here.

The leaders also formed a 16-member steering committee to chalk out future course of action. It will be jointly headed by Keshava Rao and state minister K. Jana Reddy.

Basvaraj Saraiah and Ponnam Prabhakar were named convenors of the committee while K. Rajagopal Reddy and G. Vivek would be coordinators.

As many as 100 legislators and 15 MPs belonging to Congress, Telugu Desam Party, Telangana Rashtra Samithi and other parties resigned last week to mount pressure on the centre to carve out a Telengana state.