With the DMK putting it on notice, Government was today contemplating a resolution on the Sri Lankan Tamil issue in Parliament in an attempt to placate the key ally which has set it as one of the conditions for reconsideration of its decision to pull out of UPA.
The announcement by DMK chief M Karunanidhi to withdraw support saw top Congress leaders holding a series of meetings to discuss a way out before the deadline of Thursday set by the ally expires.
Prime Minister Manmohan Singh held a meeting for more than 90-minutes with senior ministers including Defence Minister A K Antony, Finanace Minister P Chidambaram and External Affairs Minister Salman Khurshid to discuss the situation after the DMK withdrew its support.
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Sources said the government is drafting a resolution to be brought in Parliament.
DMK has made it clear that it would reconsider its decision if India supports a strong resolution at the UN Human Rights Council and brings a resolution in Parliament on the issue.
Earlier, Chidambaram insisted that the government faces no threat and that consultations have been initiated with political parties on DMK's demand that Parliament should adopt a resolution on human rights violations in Sri Lanka.
Chidambaram said the Congress Core Group, headed by party chief Sonia Gandhi, had considered the two suggestions made by DMK at length.
He sought to mollify Karunanidhi, saying his "statement deserves all respect".
Asked whether he was hopeful that DMK will reconsider its decision, Chidambaram said, "According to the media, the DMK president has said that he will review its decision if a resolution is brought before Parliament. We take note of that statement also."
He insisted that the government is stable and will continue.
"Let me assure everyone that the stability of the government and the continuation of the government are not an issue. The government is absolutely stable and enjoys majority in the Lok Sabha," he said.