Pressure is building up on the chief minister, whose party bagged close to 190 seats in the state assembly and 30 in the Lok Sabha on its own steam, to press for some key portfolios at the Centre.

The most vociferous in this regard is none other than the state unit of the Confederation of Indian Industries (CII), which has struck a good equation with Naidu where promoting investments in the state is concerned.

"The view of the industry within the state is that TDP should join the government this time round considering the economic agenda to be implemented in the coming years is quite heavy and a good equation with the Centre would be helpful,", said RS Nanda, president and managing director of Coromandel Fertiliser, who is also the chairman of the CII southern region.

CII has been concerned that most investment proposals in the state have remained on paper for want of speedier central clearances many a time.Reflecting a similar view, Global Trust Bank chairman Ramesh Gelli said there were reasons more compelling than just bargaining power for Naidu to participate in the government at the Centre. Most importantly, the TDP and BJP contested the elections on the same platform. Their manifestoes too are similar. Being the second largest constituent of the NDA, it was important for TDP to be a part of the new government rather than extending support from the outside which could be construed as a mere bargaining tactic.

"We are of the view that Naidu should ask for some good portfolios this time," says Nanda.

Naidu should ask for greater independence in designing the FDI and domestic investment policy for Andhra while he should also demand funding of the reform process within the state from the Centre, feels Gelli.

This is a point Naidu himself has raised in the past at successive finance commission meeting demanding a greater share of the central tax pool and a change in the Centre-state formula for sharing of resources.

"Most investors had been holding on to their decisions and we expect that they would move now," said Nanda.

Though Naidu refused to speak his mind on the subject, stating he had to consult the party politburo first, opinion within TDP is that he would ultimately join the Vajpayee government. The shrewd politician that he is, insiders feel he would extract the most out of Vajpayee before he allows himself to be persuaded to join the government, they say.