Violent protests have taken place in Andhra Pradesh The Indian government is due to hold a meeting with major political parties to share the contents of an official report on whether it should create the new southern state of Telangana.
The government is expected to make the report public after the talks.
Three parties, including the one leading the statehood demand, are boycotting the talks.
Andhra Pradesh, from which Telangana would be created, saw protests for and against the new state this year.
The final decision on a new state lies with the Indian parliament.
But the state assembly must also pass a resolution approving its creation.
In February, the government decided to set up a committee headed by an ex-chief justice of the Supreme Court of India, BN Srikrishna, to examine the demands for the new state.
Mr Srikrishna handed over his report to federal Home Minister P Chidambaram last week.
Correspondents say there are deep divisions within political parties over the Telangana issue.
Apart from the regional Telangana Rashtra Samiti party, which is leading calls to create the new state, the main opposition Bharatiya Janata Party (BJP) and Telugu Desam party are staying away from Thursday’s key meeting.
Reports in the Indian media say Mr Srikrishna’s report is likely to offer a number of options, including keeping Andhra Pradesh intact and forming a separate Telangana state.
In December last year, India’s Congress party-led government promised that the new state would be formed but later said more talks were needed.
Parties are split on the issue.
Congress is also in power in Andhra Pradesh.
The announcement prompted widespread protests in the state, and a student committed suicide in support of the formation of Telangana.
Opponents of the move are unhappy that Hyderabad, home to many major information technology and pharmaceutical companies, would become Telangana’s new capital.
Fearing fresh violence in the state after the publication of the report, the government has appealed to the people of Andhra Pradesh to stay calm.
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