Welcoming the Congress' decision to carve out Telangana state, he said he would not celebrate till the bill is passed.
Addressing a news conference Tuesday night, he demanded the Congress clarify on what it means by common capital. "There is a need for clarification as to what this arrangement will be," he said on Congress' decision to make Hyderabad a common capital for 10 years.
KCR, as Rao is popularly known, said he had no objection if Andhra Pradesh government is allowed to function from Hyderabad till it develops its own capital.
he TRS chief also assured people of Seemandhra (Rayalaseema and Andhra regions) living in Hyderabad that they need not have any apprehensions.
He said Telangana government would be busy in improving the brand image of Hyderabad, attracting investment and fulfilling the aspirations of people rather than indulging in petty things.
"The past is past. The problem has been solved and nobody should have any apprehension," he said while making it clear that he is not against people of Andhra.
Thanking Congress president Sonia Gandhi, Prime Minister Manmohan Singh, BJP and other parties which supported the Telangana demand, KCR said passing of bill in parliament would be most important. He demanded that the bill be passed in the coming monsoon session.
"We need to be cautious till the bill is passed by parliament in view of our past experience," said TRS chief.
It was after KCR's indefinite fast in December 2009 that the central government had announced the process for formation of Telangana state but later put it on hold due to protests in two other regions.
Replying to a query, he said TRS would have a key role in development and reconstruction of Telangana state.
Asked about merger with Congress, he said the decision would be taken by the party.
"It is not an individual's decision. The party politburo and state committee will meet and take a decision," he said.
Addressing media after announcing the Congress' green-light to Telangana, Congress general secretary Digvijaya Singh said: "KCR has repeatedly said he will merge TRS with Congress (if separate Telangana state is created). We shall await reaction of TRS. We will be favourably inclined to discuss the issue."
Soon after Congress announced its decision to carve out separate Telangana state, KCR reached the party headquarters Telangana Bhavan to a warm welcome by his hundreds of supporters.
Flashing victory sign, KCR, as Rao is popularly known, garlanded the statues of 'Telugu Talli' and TRS ideologue, the late Jayashankar.
He later drove to Telangana martyrs' memorial in front of state assembly building to pay tributes to martyrs.
He described Congress decision as a victory of martyrs, students employees, advocates, doctors and everyone who participated in the movement. He said the credit also goes toTRS workers who worked relentlessly for 13 years.