Country Report India January 2011

The political scene: Congress faces political problems in Andhra Pradesh

Congress is facing political difficulties following the resignation from the party in late November of Jaganmohan Reddy, the head of a powerful business and political family in the southern state of Andhra Pradesh. Mr Reddy, who is the son of a past chief minister of the state, Y S Rajashekhara Reddy, said that he intended to launch a party of his own. The move followed months of in-fighting and Mr Reddy's failed attempt to become chief minister of Andhra Pradesh. It is rumoured that his new party, once formed, could ally itself with the BJP-led National Democratic Alliance coalition at national level. Such a development would be a major blow for Congress. The Reddy family has made an important contribution to Congress's success in Andhra Pradesh. In the 2009 general election Congress won 33 seats there, more than in any other state.

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