The situation in Kashmir was reviewed by the Congress top brass, including Prime Minister Manmohan Singh and party chief Sonia Gandhi, on Friday evening.
The Congress Core Group, headed by Sonia, reviewed the just-concluded visit of the all-party delegation to Jammu and Kashmir to assess the ground situation in the border state witnessing unrest for the last few months.
Home Minister P Chidambaram, who led the delegation, is also a member of the Core Group. Other members are Finance Minister Pranab Mukherjee, Defence Minister A K Antony and Political Secretary of the Congress President Ahmed Patel.
The meeting took place a day after the Prime Minister reviewed the preparations for the Commonwealth Games and the Supreme Court stayed the judgment of the Allahabad High Court on the title suit of the Ram Janambhoomi-Babri masjid controversy.
The government is likely to announce "graduated step-by-step" confidence-building measures next week for Jammu and Kashmir which will include release of those apprehended in the recent stone-pelting incidents in the Valley and a review of the Armed Forces Special Powers Act in the state.