After holding meetings with senior leaders of the Congress on Monday morning, party president Sonia Gandhi has decided to convene a meeting of the Congress Working Committee on Tuesday at 9 am to discuss the difficulties before the United Progressive Alliance government headed by Prime Minister Manmohan Singh.
Amongst those who met Gandhi on Monday was Maharashtra Chief Minister Prithviraj Chavan, who reportedly discussed the possibility of the inclusion of Congress leader Narayan Rane in the Union Cabinet.
The CWG will formally endorse the decision of the Union Cabinet to allow Foreign Direct Investment in the retail sector.
With an eye on the middle class, the Union government is likely to announce 7% Dearness Allowance for its employees to contain the anger against rise in diesel prices.
The meeting is expected to discuss the evolving political situation in the wake of Trinamool Congress severing ties with the UPA and the government's determination to push ahead with reforms.
The meeting also comes at a time when there is a clear realisation in Congress that the vexed issue of Telangana cannot be kept hanging for long. Indications have been given that a decision on the issue will be taken shortly.
The CWC meeting takes place in the backdrop of clear indications that Rahul Gandhi is going to assume a "larger role" in party affairs very soon.
The occasion could be utilised by the party to rally behind the prime minister, who is being targeted by opposition parties on a host of issues, including FDI in multi-brand retail.
According to sources, while Congress leader Rahul Gandhi is not interested in joining the Union Cabinet, he is not averse to playing a greater role in party affairs. Union Health Minister Ghulam Nabi Azad will help him run the affairs of the party and give Gandhi time to recover fully from her surgery.
Meanwhile, Coal Minister Coal Minister Sriprakash Jaiswal and Tourism Minister Subodhkant Sahay are likely to lose their places in the Union Cabinet.
Sahai has, however, maintained that there was no threat to him and vested interests are spreading rumours to tarnish his image.