Second Term
The Telugu Desam Party operations were significantly computerized and a systematic local party structure was built and this resulted in the establishment of a stable second political party that survived his death. Rao introduced the concept of strong states with a strong center in his discussions about state power with Gandhi and ushered in a new era of empowered local governments, within the framework of India.
He suffered a mild stroke and was unable to campaign in the 1989 election, which he lost.
Third Term
N.T. Rama Rao returned to power in 1994 winning 250 seats (Telugu Desam won 216; CPI: 19; CPM: 15) for his party and his allies in a 294 seat Assembly. Congress party won only 26 seats. The BJP which contested 280 seats on its own won just three seats.
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