The Congress Working Committee, the highest decision-making body, decided to recommend to the central government to form the 29th state which will comprise 10 districts.
Hyderabad, considered the crowning jewel of the Telangana region, will be the joint capital of the newly-proposed state and the other regions--Rayalaseema and Andhra--for a period of 10 years. A new capital for Andhra will be identified Seemandhra region within this period.
The CWC meet followed a meeting of the UPA which also unanimously favoured formation of Telangana.
The CWC acknowledged that it "has not been an easy decision" but it was taken after the widest possible consultations and taking into account the chequered history of the demand for a separate state.
The decisions by the CWC and the UPA came after hectic consultations for the last over a week on creation of the 29th state of the country that will have a geographical area of 10 of the 23 districts of undivided Andhra Pradesh.
The process of creating the new state will take four-five months, said AICC General Secretary in-charge of Andhra Pradesh Digvijay Singh.
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