India's Congress party and a key ally hammered out a deal on Wednesday under which Congress would retain the top job in the country's second most populous state, ending days of haggling after winning polls this month.
The ruling Congress and its ally, the Nationalist Congress Party (NCP), defeated the opposition Hindu nationalists in Maharashtra state in local elections held on October 13, the first major political test after Congress was swept to power in May's national polls.
But the victory soon gave way to frustration as the NCP won marginally more seats than the Congress and demanded the post of chief minister, held by Congress in the outgoing legislature.
Under a compromise reached after several rounds of talks between the two allies, NCP agreed to let Congress retain the chief minister's post, senior NCP leader Praful Patel told reporters.
In return, NCP would continue to hold the post of deputy chief minister and get two extra cabinet posts and one junior minister post in the state's government, he said.
"Since there was a bit of a difference in our numbers, Congress has agreed to give us more ministries," Patel said. "We have agreed to this arrangement under the basic premise that the two parties have to work unitedly."
Patel did not name the state's next chief minister, but analysts expect outgoing Chief Minister Sushil Kumar Shinde to get another term.
Under India's federal system a chief minister enjoys wide ranging powers that include control of revenues, finances, security, development, and industries.
Maharashtra, home to India's financial and film capital Bombay, is the country's second most populous state and is considered a plum state to rule.