"Mutual co-ordination and trust among UPA partners have collapsed. The Central government has failed on price front. On the other hand, verbal dual is on among UPA allies on the issue of Indo-US Nuclear deal," Naidu, who was on his way to Ujjain to attend a function, told reporters here.
He said that differences among UPA allies have gone to the level that the coalition government may fall any day.
"Though BJP is not in a hurry for mid-term polls, but keeping the developments in view, we have intensified our preparations in this regard," he said.
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The former BJP Chief said while Prime Minister Manmohan Singh favours forward movement on the deal, UPA constituents, like RJD, NCP and DMK were of the view that such step would lead to fall of the coalition government.
However, he said that "UPA partners, in the lust for power, want continuance of the government. Besides, they are fully aware about people's ire on price rise (if elections were held). Therefore, they are trying to avoid polls".
Naidu said that BJP's Central Election Committee is meeting on June 26, in Delhi and it would finalise party's strategy for Lok Sabha as also assembly election due in some state later this year.