The Congress and the Nationalist Congress party — partners in the United Progressive Alliance — agreed to a ceasefire after hectic consultations between the leaders of both parties.

It has been indicated that the UPA will soon establish a mechanism to increase consultations among allies on key policy issues.

The ministers of the NCP, Mr Sharad Pawar, Mr Praful Patel and Ms Agatha Sangma will resume work on Thursday. They had offered their resignation protesting the lack of coordination within the UPA.

After a meeting between the Prime Minister, Dr Manmohan Singh, the UPA chairperson, Ms Sonia Gandhi, Mr Pawar and Mr Patel, here on Wednesday, it was decided to hold “regular consultations” within the UPA.

Mr Pawar and Mr Patel are reported to have told the Congress leaders that they did not wish to continue in the Government if the issue of “lack of coordination” was not addressed properly. The issues between the two parties were affecting the Maharashtra Government too.

Mr Patel told reporters after the meeting that all controversies of the last few days have come to an end.

The UPA leaders said an effective coordination mechanism would be set up soon and allies will meet at least once a month to decide on issues.

“A Coordination Committee would be set up in Delhi which will be headed by Ms Gandhi,” Mr Patel said. A similar panel will be set up in Maharashtra.

There were rumours that Mr Pawar was unhappy for being denied the “number-two” position in the Cabinet. The Trinamool Congress, the second largest ally in the UPA, was also unhappy with the functioning of the UPA.

jigeesh.am@thehindu.co.in