Communist allies of India's government are due to meet the president to inform her that they are withdrawing support to it over a nuclear deal with the US.
The move came after Prime Minister Manmohan Singh said the government would press ahead with the deal.
Left-wing parties fear the deal could open Indian foreign policy to too much US influence. The government says it is needed to meet soaring energy demands.
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During the meeting with President Pratibha Patil, the allies are also expected to demand a vote of confidence in the parliament for the government to prove its majority.
The communists have 59 members in India's lower house of parliament.
The Congress-led government is hoping that the a regional party will help his government survive a vote of confidence.
Reports say that the vote of confidence could be held later this month, ahead of the planned opening of the new session of the lower house of the parliament on 11 August.
Separately, Indian PM Manmohan Singh met US President George W Bush on the sidelines of the G8 summit in Japan.
''We talked about the nuclear deal, how important it is for our respective countries,'' Mr Bush said after the meeting.
'Off-limits'
India is under pressure from Washington to sign the accord before the US presidential elections in November.
Under the terms of the accord, India would get access to US civilian nuclear technology and fuel.
In return, Delhi would open its civilian nuclear facilities to inspection - but its nuclear weapons sites would remain off-limits.
Analysts say that if they pull out of the governing coalition, it will only have 226 members in the 543-seat parliament, a good 46 seats behind the majority mark.
But they say the communists' decision may not lead to a collapse of the government and early elections.
Reports say the Congress party has struck a deal with a north India-based regional party, the Samajwadi Party, and several other smaller parties to compensate for the communists' loss of support.
The Samajwadi Party has been a traditional political foe of Congress, but has said that its 39 MPs would support the governing coalition on the nuclear deal issue.
The deal now needs to be approved by the UN's nuclear watchdog, the International Atomic Energy Agency (IAEA), as well as by the 45-nation Nuclear Suppliers Group, which regulates global civilian nuclear trade.
Then it has to be presented to the US Congress for final approval.
Mr Singh said he would submit an application to the IAEA as soon as possible.
(BBC)
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