"Congress party is considering to form a group with all senior leaders of party from the Telangana region who will talk about this (alliance) with TRS leaders," Singh told reporters.
He said that as far as merger issue is concerned, a statement has come from Rao himself rather than from Congress.
"Now that TRS has ruled out merger, that is an issue with them, not with us. We would have definitely welcomed the merger, because this is what he had promised to Sonia Gandhi when Rao had met her."
Dashing the hopes of Congress, TRS had on Monday ruled out any merger with the national party ending days of speculation about the prospects of the two parties coming together.
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It had at the same time appointed a committee of senior leaders, headed by K Keshav Rao, to take a call on an alliance if any party approaches it, including Congress.
Rao had also said that TRS MPs could support Congress after Lok Sabha elections. Lashing out at Congress, he alleged that not even a single major demand of TRS was considered.
On Tuesday, Congress leaders from Telangana region had expressed confidence that the national party would put up an impressive show in the coming general and legislative assembly elections.