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State polls in India may strain federal coalition

NEW DELHI, Monday (Reuters) - A key ally of India's Congress-led national coalition lost its majority in the Bihar state legislature, Indian television said as the nation's poorest state clearly headed for a hung assembly.

The unclear verdict is likely to strain ties within the federal United Progressive Alliance (UPA) but is not expected to have an immediate impact on the stability of the government, which unveils its first full-fledged budget on Monday.

The regional Rashtriya Janata Dal (RJD), a Congress ally, was leading in 75 seats in the 243-member Bihar assembly, while the Hindu nationalist Bharatiya Janata Party (BJP) alliance was ahead in 94 seats, NDTV 24/7 news channel reported.

The local assembly elections in Bihar and two other states had been expected to boost the strength of the Congress and its UPA allies which came to power last May.

But the Congress fought the RJD in Bihar, in alliance with another national ally, the Lok Janashakti Party (LJP), showing that UPA unity was in disarray at the state level.

With all parties and alliances short of a majority in the lawless eastern state, there is the possibility of prolonged instability and the spectre of direct rule being imposed by the federal government.The RJD has 24 members in the 545-seat federal parliament, including two Cabinet ministers.

The Congress, headed by Italian-born Sonia Gandhi, fared poorly in Bihar where it was winning or leading in just 12 seats.

The Congress, at the helm of a diverse national coalition, now must calm the tensions the state elections have stirred.

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