As the Congress party observed that the TRS party was gaining strength, it wanted to tie up with TRS party and thereby divert the votes of TDP to gain power. With this plan, Congress voted the responsibility of tie up with TRS to the then Andhra Pradesh congress committee president D Srinivas As a part of this plan, Andhra Pradesh Congress party incharge Gulam Nabi Azad came to KCR ‘s house and discussed this matter.
- Later also, Pranab Mukherji and KCR discussed an alliance in the West Bengal Guest House in Delhi. Congress leaders gave assurance to KCR that they will take necessary steps; for the formation of Telangana State after assuming power. KCR also felt that the NDA was not in a position to come to power for the third time and accepted alliance with Congress. The e Congress and TRS came to an agreement on February 25, 2004. In the total Assembly seats of Telangana TRS will contest 42 seats and in the total of 17 Lok Sabha seats TRS will contest 6 seats, The congress Sent a group of representatives under the leadership of Gulam nabi Azad to sign the agreement.
- TRS demanded the Congress to announce that it will accept the First SRC recommendations of States reorganization on linguistic basis. The representatives group sent by high command did not accept this as it preferred the formation of second SRC. Congress which had alliance with TRS formed Telangana Regional Congress committee. Similarly congress included the issue of Telangana in its manifesto. BJP in alliance with TDP made an agreement to contest 27 Assembly seats and 9 Lok Sabha seats. In the elections congress, TRS and the two Communist parties became a front and TDP, BJP tied up in the elections as another front.
- After Making an agreement with TRS, Sonia Gandhi speaking in a public meeting in Karimnagar on March 12, 2004 announced, ‘we know the emotions of Telangana people. We respect their feelings. We will try to fulfill their desire’.
- In the same 2004 elections the then central minister L.K. Advani announced that if all the parties in Andhra Pradesh Assembly express consensus on Telangana, the NDA government in the center will add Telangana issue in its agenda. As the elections were nearing, impatient Chandra babu Naidu alleged that KCR had no sincerity.
- He would also cheat the movement like Chennareddy did in 1969 by making secret agreement with Congress, he brought the Telangana issue into forefront as he was not given ministers post. In the last 40 years there had been tremendous development in Telangana.
- The threat of Maoists is a hindrance to development; If Telangana was formed barriers will appear in the form of barrages on Godavari, Delta and coastal areas will turn into a desert. He also alleged if Congress won, with the fear that TRS would reveal the secret agreement between them, they will divide the state. In this context, the Andhra businessmen who mingled with Chandrababu Ridiculed the status of Hyderabad.
- The BJP having an alliance with TDP also spoke in two tones. BJP President Venkaiah Naidu speaking about the resolution made in 1998 Kakinada meeting for the formation of Telangana state satirically stated that the Kakinada resolution was still in Kakinada only. Advani also tried to evade BJP’s stand on the issue of Telangana. He announced that BJP will support the formation of small states.
- The Congress entered into an agreement of alliance with TRS but its leader YSR, speaking to the media in Delhi, Stated that Congress will stand by the second SRC. ‘What will be the state of Hyderabad? Is it going to be a common capital for both the states? Is it going to be a Union Territory Are the issues to be examined he said. For the first time YSR raised the issue of Hyderabad and indirectly warned that if Telangana state is formed Hyderabad will be lost’. On the statements, KCR on may 6, 2004 said if Hyderabad is not made the capital of Telangana, the situation of 1969 will repeat. I won’t accept any one to take away even an inch of Telangana soil’. We constructed Hyderabad with our toil and seat.