The Telugu Desam Party (TDP) has for the first time officially announced that it will severe alliance with the National Democratic Alliance by March 5 if the Centre does not fulfill all the 19 promises made by Finance Minister Arun Jaitley.
Andhra Pradesh MP Adinarayana Reddy also said their ministers in Central Cabinet will also resign.
Finance Minister Arun Jaitley had earlier said a solution will soon be arrived upon regarding the Centre's agreement to provide special assistance to the state of Andhra Pradesh.
"Central government had agreed to give special assistance measures to Andhra Pradesh for five years. Earlier, this assistance was to be given by externally aided program. However, in month of January, the state government suggested alternative methods, and solution is likely to be finalised soon," Jaitley said in his address at the Rajya Sabha.
A rift has emerged between the ruling Bharatiya Janata Party (BJP) and its ally- TDP in the state, after the Union Budget presented on February 1 did not reflect the agreement.