960403

Indian Commerce Minister

quits Rao's govt

NEW DELHI: Indian Commerce Minister P. Chidambaram, a leading proponent of economic reform, resigned on Wednesday from Prime Minister P.V. Narasimha Rao's government in protest over an electoral alliance, government officials said.

They said junior Industry Minister M. Arunachalam also quit. "They have both resigned," an official said.

Chidambaram and Arunachalam had vigorously opposed a decision by Rao's Congress party last week to strike an alliance with the governing party in the southern state of Tamil Nadu.

The resignations could seriously damage Congress' chances in the state, where the former ministers have their parliamentary constituencies.

Earlier, media reports said that the two were expected to run in general elections starting later this month under the banner of a rebel Congress faction which has linked up with a Tamil Nadu opposition party.

Rao, hoping the two men would stay with Congress for the polls, had held their two constituencies open when awarding electoral tickets to Congress members this week.

But the prime minister, convinced Chidambaram and Arunachalam would run with the renegade Congress group, gave up hope on Wednesday and forwarded their resignations to President Shankar Dayal Sharma for his expected approval, Congress officials said.

The Harvard-educated Chidambaram, who with Finance Minister Manmohan Singh has been a tireless advocate of the free-market reforms Rao's government launched in 1991, has strongly opposed Congress's alliance with Tamil Nadu's governing party.

Congress and the All India Anna Dravida Munnetra Kazhagam (AIADMK) announced their alliance last week, prompting outraged members of the state Congress unit to burn effigies of Rao and run up a black flag at party headquarters in the capital Madras.

Chidambaram and Arunachalam had argued that the AIADMK turned against Congress after striking an alliance in elections in 1991 and flirted with the opposition in the federal parliament.

After the 1991 election, Congress and the AIADMK waged a war of words. Rao's party accused AIADMK chief and former movie star Jayalalitha Jayaram of authoritarian ways. AIADMK said Congress had failed to support its regional causes.

The leader of the Congress faction in the state, G.K. Moopanar, announced on Sunday that he was breaking ties with the main Congress party and linking up with the opposition Dravida Munnetra Kazhagam (DMK).

The federal Election Commission subsequently recognised Moopanar's rebel faction as a new party.

Tamil Nadu sends 39 members to the 545-seat federal parliament. Congress and AIADMK won all 39 in 1991.

A voter survey in The Times of India said on Wednesday that Congress was expected to take 10-15 seats in the state this year.

In four southern states including Tamil Nadu accounting for 129 seats, Congress's showing was expected to fall to between 55 and 65 this year from 103 in 1991, the survey conducted by the Centre for Media Studies said. The newspaper did not say how many voters were polled.

The release on Tuesday of the first major opinion poll since campaigning began said Congress was likely to lose its absolute majority in parliament but could emerge as the biggest party in the polls, which are spread over five days starting on April 27 and ending May 30.