Jammu, Dec 11 : Union Home Secretary G. K. Pillai on Friday retracted from his earlier stand that Hyderabad would be the capital of the proposed Telangana state, saying the decision will be taken with consensus by the Centre.

“No decision was made regarding the capital and the Government of India will take a decision with consultation with all parties involved,” Pillai said.

Earlier in the evening, commenting on Hyderabad, Pillai had said: "I think it will always be the capital of Telangana."

Pillai also hinted that Union Home Minister P Chidambaram has initiated the process for the formation of the Telangana State.

"The home minister has made the statement that the process of forming the new state has been started and I am sure in the coming days as people understand the real implications of what it meant, I think the agitation would die down and the process of formation of new state would continue," he added. (ANI)