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The justification came a day after the United Progressive Alliance Coordination Committee recommended that the government form a separate Telangana from Andhra Pradesh.
"There is nothing wrong in making Hyderabad the joint capital of the two states," Digvijaya Singh said, adding: "People need to understand that unless a new capital is formed, Hyderabad will be the joint capital. Ultimately, it will be in Telangana."
Telangana Rashtra Samithi (TRS), the party that has spearheaded the movement for a separate Telanagana state, however, has opposed the idea of Hyderabad as a joint capital.
According to the resolution the Congress Working Committee adopted Tuesday, Hyderabad would serve as the joint capital for the two states for 10 years, in which time a new capital would be created for Andhra Pradesh with central assistance. The new Telangana state will have 10 districts.