"We are watching the situation closely," AICC general secretary Prithviraj Chavan on Wednesday said when asked about reports of the possibility of the party extending outside support to the JD-S, which is currently locked in tussle with its coalition partner BJP on the transfer of power issue.

The reports also had it that a decision on the issue would be taken after Sonia Gandhi's return from her foreign tour.

Congress had so far been giving signals that it does not want to get embroiled in the power tussle in Karnataka as such a move would be electorally counter productive.

"Why should we take the anti-incumbency of the JD-S when election is the best way out," goes the argument in the Congress.

The JD-S had organised a meeting of political affairs committee on October 5 to decide the future course of action while 17 BJP minister have submitted their resignation to the Chief Minister H D Kumaraswamy on Tuesday night.