Official sources said the Home Ministry is preparing a note to be submitted for approval of the Union Cabinet which will recommend for dissolution of the Assembly to pave way for holding the Assembly elections.
Jharkhand was placed under President's rule on January 18 and the 82-member state Assembly was kept under suspended animation after JMM withdrew support from the BJP-led government.
It is not immediately known what prompted the Centre to initiate the move but sources said the government may have come to the conclusion that an alternative government in the present House was not possible.
In the current Assembly, BJP and JMM have 18 members each. The Arjun Munda led coalition government had the support of six members of All Jharkhand Students' Union, two of JD (U), two Independents and one nominated member who has voting right in a trial of strength.
Opposition Congress has a total of 13 members, Jharkhand Vikas Morcha(P) 11 and RJD 5 in the assembly. CPI-ML(L), Marxist Coordination Party, Jharkhand Party (Ekka), Jharkhand Janadhikar Manch and Jai Bharat Samta Party have a member each besides an Independent.