He reversed this decision and merged his party with the Telugu Desam Party on 3 August 2009.
The manifesto promised many populist schemes to counter the Telugu Desam Party's free colour television and cash transfer scheme for poor and schemes like Rs. 20 a kg of rice currently being implemented by the Congress government.
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He launched his political party as an alternative to the ruling Indian National Congress and Telugu Desam Party in his native state of Andhra Pradesh.
Even after India attaining Independence from the British Raj in 1947, Andhra Pradesh state of India is governed till today either by Indian National Congress, dominated by one caste (5% of Andhra Pradesh population) of Forward Caste, or by Telugu Desam Party, dominated by another Forward Caste (3% of Andhra Pradesh population).
In the ensuing bi-elections, the party won most of the vacated seats with record breaking majorities, with many of the Congress and the Telugu Desam Party (the main opposition) candidates losing their deposits.
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Palle Raghunatha Reddy is a current Member of the Legislative Assembly (MLA) of Andhra Pradesh, state in southern part of India, representing the constituency of Puttaparthi for the Telugu Desam Party.
Riding high on a sympathy wave,Sridhar Babu won on the Congress ticket from Manthani in the 1999 elections though his Congress party was relegated to sitting in the opposition.He defeated his nearest Telugu Desam Party Rival C. Rami Reddy by a margin of over 15,000 votes
In 2009, he won against two prominent film actors, Telugu Desam Party candidate M. Murali Mohan and another film star U. V. Krishnam Raju.