India's political turmoil :

Key party withdraws from Congress

INDIA: A key regional party from southern India has withdrawn from the ruling national coalition, dealing a fresh blow to Prime Minister Manmohan Singh's embattled administration.

The exit of the Dravida Munnettra Kazhagam (DMK) is the latest challenge to confront the Congress-led Government, which has been buffeted by slew of corruption scandals the biggest of them centred on a DMK former Minister.

The jailing of A. Raja, a former Telecom Minister, over allegations that he rigged the 2008 sale of mobile phone licences costing the national exchequer up to $40 billion has badly strained relations between the DMK and Congress.

But the DMK said it snapped its seven-year alliance with Congress late Saturday because it had been unable to reach a seat-sharing deal with the party for elections in the state of Tamil Nadu. The Congress-led federal coalition still commands a working majority in the national parliament, with at least 310 MPs in the 545-seat decision-making lower house.

"We have decided to relieve ourselves from the Government," said DMK president M. Karunanidhi, adding that the DMK's six ministers in the national cabinet would resign.

The DMK is the governing party in Tamil Nadu, where it has been ruling in alliance with the Congress.

While withdrawing from the federal coalition, the DMK said it would still offer the federal government "issue-based" support.

The departure of the DMK could still make the going harder for Congress as it seeks to push its legislative agenda through parliament, emboldening the main opposition Hindu nationalist Bharatiya Janata Party, which has been hounding the government over corruption.

Congress officials said the DMK's decision had not been "officially communicated" to the party and indicated that they believed it still might be possible to salvage the alliance with the DMK.

"There is no need to comment," said Congress party spokesman Abhishek Singhvi. "This is in the middle of negotiations" and any "comment will muddy the waters."

The talks over seats came to an impasse over a Congress demand to run candidates in 63 constituencies of its choice in the Tamil Nadu polls next month, after previously agreeing to 60, DMK leader Karunanidhi said.

New Delhi, Sunday, AFP