According to sources in Telangana Rashtra Samiti (TRS), which is set to form the government after the just-concluded Assembly elections, Rao is tipped to be the Principal Secretary in the Chief Minister's Office.
He is said to have been handpicked by TRS supremo K Chandrasekhara Rao.
A 1986 batch Andhra Pradesh cadre IAS officer, Narsing Rao hails from Telangana region.
When contacted, he said he will speak on the issue later.
He is likely to be allocated to Telangana when the All-India services officers are divided between the two states-- successor state Andhra Pradesh (Seemandhra) and the new state Telangana.
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A decision on his VRS application, however, had been pending. Hence, technically he continues to be an IAS officer.
"As his new job is almost fixed here in Telangana Government as Principal Secretary in the Chief Minister's Office, he is expected to submit his resignation to the Coal India Board next week," a source said.
Rao is is expected to be relieved in two-three weeks after he submits his resignation to the board. Thereafter, he may get the green signal for his return to the home state cadre.
"For the Principal Secretary's post in the CMO, one need not be an IAS officer. However, since Rao's VRS is still pending he may well continue in the services," a government source said.
Before joining Coal India, Rao had worked as CMD of Singareni Collieries, which is owned by state and central governments with 51 and 49 per cent holding, respectively.
TRS is set to form the first government in Telengana, which will formally come into existence as the country's 29th state on June 2, following the bifurcation of Andhra Pradesh.