NEW DELHI. Dec 11: Indian Prime Minister P V Naraslmha Rao a Congress (I) Party, which has suffered a stinging setback In state polls, today rejected opposition calls for snap general elections, reports Reuter.

Congress, which had controlled all four states holding elections, lost its hold on ■ three of them and was neck-and-neck with the opposition in the fourth.

"There Is no question of snap polls. Where is the question of snap polls ? The verdict Is not against the federal government. Congress spokesman V N Gadgil told reporters after a meeting of party leaders that lasted till midnight Saturday to take stock of the defeat.

The party, which has ruled India for all but three years since Independence in 1947. was crushed in Rao's home state of Andhra Pradesh as well

as In neighbouring Karnataka, by far the largest electoral prizes.

Congress had held overwhelming majorities in both southern states since the last elections in ,1989.

The route raised questions about the pace of Rao's far-reaching free-market reforms and his prospects of surviving until the next general elec-. tions. set for May 1996.

'The BJP regards the verdict of these elections as a clear index that the Congress (I) Party has lost the confidence of the people," Lal Krishan Advani, president of the Hindu nationalist Bharatiya Janata Party (BJP). told a news conference.

Advani demanded that Rao "humbly accept the implications of this verdict, and seek a fresh mandate from the

people." Tlie BJP was also considering a no-confidence motion against Rao. who has a razor-thin majority in parliament.

Ram Vilas Paswan. spokesman of the centrist Janata Dal party that crushed Congress tn Karnataka, called on Rao to resign. "He is the worst prime minister for the Congress." Paswan said.

The state elections have no direct impact on the party's parliamentary majority in the capital New Delhi. Pre-poll surveys showed voters were swayed mostly by local issues and generally were not taking aim at Rao.

But the losses were significant because the south has provided Rao with his power base since he took office In 1991 and launched a far-reaching economic liberalisation

programme.

"Congress does not exist in the north and it has been routed tn the south," said the chief minister of the eastern state of Orissa. Biju Patnaik, of the centrist Janata Dal Party.

Rao's economic reforms have opened up India's mar kets, delighting fore^n investors but bringing Increased competition and hardship to many industries.

Gadgil said the opposition demand for a snap poll did not come up at the meeting.

"The ’ Congress working committee is of the view that It would not be'correct to interpret these results as a rejection of the policies and programmes Initiated by the Congress government after the last Lok Sabha elections." a resolution adopted at the end of the meeting said.