India's union Finance Minister P Chidambaram has reached out to Akhilesh Yadav, the Chief Minister of Uttar Pradesh with praise for his work and also promised central assistance for the development of the state.

Mr Chidambaram said that the Yadav is a young leader and understands his state of Uttar Pradesh well. The finance minister also said that development projects proposed by the Akhilesh Yadav government would get full support from the central government. He said that the government of India will stand by the Uttar Pradesh government in its development projects.

"We need a week or two to discuss them. I will invite the Chief Minister to Delhi when we decide to act on these proposals," Mr Chidambaram said. He was speaking at an event organised to open 300 bank branches in the state capital, Luckhnow.

The remarks came after there were indications that the UPA might weaken in the centre if the Samajwadi Party decides to withdraw following a similar step by South's DMK party. The Samajwadi Party currently provides outside support to the Congress-led UPA government. Mulayam Singh Yadav has been criticising the Congress party and has said that his party might withdraw its support.