By Altaf Hussain BBC reporter in Srinagar

The leader of the People's Democratic Party (PDP) in Indian-administered Kashmi, Mufti Mohammad Sayeed, has been formally invited to form the state's new government.

Mr Sayeed called on the governor. GC Saxena, in the capital, Srinagar, accompanied by state leaders of the Congress Party, Communist Party of India (M), and Panthers Party.

The PDP and the Congress together won 36 seats in last month's election, defeating the ruling National Conference party.

After weeks of disagreement over who would become chief minister, they finally agreed a coalition deal last week.

Mr Sayeed will be sworn in on Saturday.

Key portfolios

Mr Sayeed handed over letters of support from 52 newly-elected legislators to the governor and said he had the support of another four.

Mr Azad went with Mr Sayeed to see the governor

This is much more than the 44 members whose support he needs to prove his majority in the 87-member house.

Later, he told reporters that he would try to give representation to all the regions of the state in the cabinet but would at the same time try to keep his council of ministers compact.

He said there were no problems among the coalition partners over the allocation of portfolios but refused to say who would be the deputy chief minister and who would get the crucial home affairs portfolio.

Traditionally, the home portfolio in Indian-administered Kashmir is retained by the chief minister.

This has been the practice since 1953 when Sheikh Abdullah, then prime minister of the state, was arrested on the orders of his own Home Minister, Bakshi Ghulam Mohammad.

Clemency

Congress party members, who had expressed resentment over party President Sonia Gandhi's decision to back Mr Sayeed for the chief minister's post, have been demanding key portfolios, including home, for their party.

Earlier, the state Congress chief Ghulam Nabi Azad arrived in Srinagar to a rousing reception by thousands of party workers and supporters.

He was taken in a motorcade from the airport to the party headquarters, a distance of 13 kilometres.

Addressing a rally there he appealed to the militants to lay down arms and devote their energies to the development of the state.

He said the government would give clemency to local youth who had taken up militancy, but would not spare any of the foreign militants who would be dealt with firmly.