Hyderabad remained tense on Sunday in anticipation of an announcement by the Centre on the creation of a separate state of Telangana by Sunday evening.

Home Minister Sushilkumar Shinde is expected to meet party chief Sonia Gandhi and other senior leaders before making a final announcement on Telangana by Sunday evening.

According to sources, the Union government may try to delay the final decision and buy some time before taking a final call.

Senior Congress leader Ghulam Nabi Azad had earlier indicated that the party may need more time to take a decision.

Meanwhile, massive protests were held in Hyderabad on Sunday, with pro-Telangana leaders like Telangana Rastriya Samithi legislator K T Rama Rao courting arrest.

Some activists have gone on a 36-hour hunger strike to press for a separate state.

Sources in the Congress point out that the party is exploring various options. It cannot afford to anger those elements opposed to the creation of a separate state. On the  political front, the Congress has to act cautious as it is trying to strike a pre-poll alliance with the TRS.