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Wednesday, 1 August, 2001, 08:38 GMT 09:38 UK
Allies rally round Vajpayee
LK Advani with Atal Behari Vajpayee
Strong support for Mr Vajpayee at the NDA meeting
India's governing coalition has rallied around Prime Minister Atal Behari Vajpayee a day after he threatened to resign.

Mr Vajpayee's partners in his National Democratic Alliance (NDA) came out in strong support of the prime minister in a special meeting on Wednesday.

A joint statement issued after the meeting said the allies expressed their "unqualified faith and trust" in Mr Vajpayee's leadership.


The NDA shares the prime minister's disappointment and distress over the irresponsible actions and behaviour of some individuals

NDA statement
On Tuesday, Mr Vajpayee dramatically offered to step down in the face of increasing pressure over a number of political scandals and the apparent failure of recent talks with Pakistan.

He has also been under attack from within his government with one ally, the right-wing Shiv Sena party, linking his office with a scandal surrounding India's largest mutual fund.

But on Wednesday, Shiv Sena chief Bal Thackeray apologised to Mr Vajpayee for the remarks.

"Prime Minister Atal Behari Vajpayee is the only one who can lead this country," Mr Thackeray said.

The Shiv Sena stayed away from Wednesday's meeting and appeared to be the target at the NDA meeting.

"The NDA shares the prime minister's disappointment and distress over the irresponsible actions and behaviour of some individuals which gives an impression of a lack of cohesiveness in our alliance," the statement said.

The statement said a code of conduct would be drawn up and applied to all members of the alliance to ensure that their differences would not be aired in public.

Under pressure

The prime minister has been under increasing pressure, both from within his government and from the opposition, over the talks with Pakistan and a series of financial scandals.

Musharraf and Vajpayee
Pressure after failed talks with General Musharraf
Earlier this month, a landmark summit between Mr Vajpayee and Pakistani President General Pervez Musharraf failed to reach any agreement because of differences over Kashmir.

The summit was seen as part of a personal initiative by Mr Vajpayee and its collapse was said to have left him vulnerable politically.

His government is also under pressure over a scandal surrounding the country's largest mutual fund, Unit Trust of India (UTI).

Transactions in one of its main investment schemes were frozen earlier this month, causing panic among millions of small investors.

The chairman of UTI and two directors have since been arrested for suspected involvement in a $3.8m fraud.

Earlier in the year, Mr Vajpayee's government was also embarrassed by an arms bribery scandal which led to the resignation of the defence minister.

 WATCH/LISTEN
 ON THIS STORY
News image BJP spokesman VK Malhotra
"All the allied partners have expressed their confidence in the prime minister"
News image George Fernandes, National Democratic Alliance
"The country today needs his leadership"
See also:

04 Jul 01 | South Asia
Indian mutual fund chief resigns
19 Jul 01 | South Asia
Vajpayee backed over Agra summit
17 Jul 01 | South Asia
Analysis: Vajpayee's summit setback
14 Mar 01 | South Asia
Scandal threatens Indian coalition
08 Oct 99 | South Asia
The moderate face of the BJP
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