Puducherry elections: AINRC must stay with BJP for funds, says minister

“Puducherry must align with the party at the Centre to survive financially,” said Minister K Lakshminarayanan, underlining the Union Territory’s dependence on central funds. With elections scheduled for April 9, 2026, alliance dynamics and statehood demands have taken centre stage. The Federal spoke to K Lakshminarayanan, Minister in the AINRC government, on the NDA alliance, Centre-state relations, and Puducherry’s political future.

How does it feel for AINRC to continue its alliance with the BJP, given your long association?

See, Puducherry is a small Union Territory with a population of 1.4 million and very limited income resources. From the time it merged from a French colony into the Indian Union, it has depended heavily on financial support from the Centre.

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So naturally, we have to align with the party at the Centre. Whether it is a coalition or otherwise, being aligned helps us secure more funds. We cannot tax much due to the limited population. So, it is convenient, comfortable, and beneficial for us to be with the ruling party at the Centre. On that basis, our party aligned with the BJP.

But analysts say central allocations to Puducherry have reduced over time. How do you respond?

Yes, that is absolutely correct. At one point, central funding was around 65–75 per cent. It started reducing during the Indian National Congress government.

Initially, there were many promises, but over time, due to policies and regulations, Puducherry was treated like any other state rather than a special case. As a result, allocations dropped to around 17 per cent.

Now, after the AINRC-BJP alliance came to power, the allocation has increased to around 27 per cent. So there has been improvement.

There were reports of friction between AINRC and BJP during alliance talks. Does that still exist?

No, there is no friction. We have been sailing with the BJP since 2014. What people call friction is actually negotiation.

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Every political party - national or regional - goes through bargaining before finalising alliances. Once settled, there is no issue. We have run a stable coalition government for five years. Differences of opinion may exist, but they never affect our goal of delivering good governance.

What is your view on the inclusion of LJK in the alliance? Was it a point of contention?

Yes, it was a point of contention. But the Union home minister intervened and assured our Chief Minister that the decade-old alliance would not be affected.

When leaders like the home minister and Prime Minister give assurances, it serves the purpose. They have guaranteed that any future issues will be taken care of.

Do you think AINRC was pressured by BJP to accommodate LJK?

To be frank, our alliance is only with the BJP. Even in our agreement, it is clearly mentioned.

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The BJP may have internal arrangements, like reservation within reservation. We cannot question that. Our alliance remains with the BJP alone.

If you come to power, will similar pressures arise regarding LJK’s demands?

That can be seen later. In negotiations, the BJP might have asked for more seats, but AINRC is the leader of the NDA in Puducherry.

The Chief Minister, N. Rangaswamy, is the face of the alliance and will have the final say. As per the Constitution, cabinet formation and portfolio allocation are the Chief Minister’s prerogative.

So, pressure will not affect governance. With his 20 years of experience, he will manage everything effectively.

Critics say the BJP gradually absorbs regional parties. Do you see that happening?

In evolution, anything can happen. Politics is always evolving.

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But here, it is different. These parties are openly aligning with the BJP. So, the situation is not the same as what critics describe elsewhere.

Despite your strong alliance with the BJP, why hasn’t Puducherry received statehood or more autonomy?

In the last 30 years, when Congress ruled Puducherry, they were also unable to achieve this. Even now, though we are in alliance, the Centre is a different entity.

Whoever is in power at the Centre has been reluctant to delegate more powers. This is not limited to one party; it has been consistent across governments.

So what is the Centre’s position on Puducherry’s autonomy?

The Centre argues that Union Territories are meant to be administered by it, as per the Constitution. They say financial support is given, but administrative control must remain with the Centre.

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If more powers are needed, then the Constitution itself has to be amended.

But multiple resolutions have been passed demanding statehood. Why no progress?

Yes, that is true. Many resolutions have been passed over the years by different governments. But no party at the Centre has been willing to accept it. It is an open secret.

Still, the demand continues because governance must reflect the will of the people. That is the essence of democracy.

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