The minister told the Lok Sabha that "creation of any new state has wide ramifications and direct bearing on the federal polity of the country".
"The government of India moves in the matter only when there is a broad consensus in the parent state.
"The government takes a decision on the matter after (considering) all relevant factors," he added in a written statement.
The minister said demands and representations were received from time to time from individuals and organisations for creating new states.
These include demands for Telangana in Andhra Pradesh, Vidarbha in Maharashtra, Saurashtra in Gujarat, Coorg in Karnataka, Koshalanchal in Orissa, Gorkhaland in West Bengal and Mithilanchal in Bihar.
He added that the Uttar Pradesh government had forward a resolution passed by the assembly in November 2011, suggesting the state's division into four smaller states - Purvanchal, Bundelkhand, Avadh Pradesh and Pashchim Pradesh.