``Despite strong initial differences, we have now decided in favour of simultaneous polls in the larger interest of the alliance. However, after the Assembly is dissolved, if Alexander recommends Central Rule, it will have an adverse impact on the alliance,'' a senior Shiv Sena Minister said.

Last week, Information and Broadcasting Minister Pramod Mahajan and Deputy Chief Minister Gopinath Munde had a prolonged meeting with Prime Minister Atal Behari Vajpayee on the holding of simultaneous elections.

``After hearing the arguments advanced by Mahajan and Munde, Vajpayee gave his consent for simultaneous polls. At the same time, Vajpayee asked the BJP leaders to seek the opinion of Shiv Sena chief Bal Thackeray beforetaking a decision,'' the Minister said.

In view of the possibility of President's Rule, both the BJP and Shiv Sena are in two minds on holding simultaneous polls. ``Vajpayee is likely to speak to Alexander. Only if there is a specific assurance from the Governor will the Assembly be dissolved. Otherwise, elections to the Assembly will be held in February-March 2000 as per schedule,'' the Minister added.

Under the Constitution, the Minister said, the Governor can exercise his discretion on recommendation of Central Rule. ``If he recommends President's rule, we will be helpless,'' he observed.

Ever since the dissolution of Parliament, the BJP has been pressing for simultaneous elections to the Assembly and Lok Sabha for two reasons. For one, the vertical split in the Congress will help the alliance improve its performance in the Lok Sabha as well as the Assembly. Furthermore, the manner in which the Prime Minister handled the Kargil situation will benefit the alliance.

Chief Minister Narayan Rane hadendorsed the BJP's views, saying the alliance was prepared for simultaneous elections. However, the proposal was strongly objected to by Shiv Sena chief Bal Thackeray. His contention was that the democratically-elected Government should be allowed to complete its term, saying it would be wrong to cut its life short by six months.

Following a meeting with Deputy Chief Minister Gopinath Munde, Thackeray agreed to simultaneous polls. However, the official announcement of the decision was postponed because of the absence of State BJP president Suryabhan Wahadane.

Meanwhile, Chief Minister Narayan Rane has said the coordination committee meeting will now be held on July 14. ``The coordination committee will decide on holding simultaneous polls,'' Rane added.

According to a senior BJP Minister, it was decided to hold the coordination committee meeting on July 8 and a special Cabinet meeting on July 10 to decide on the dissolution of the Legislative Assembly.

``One of the reasons for dissolving the Assemblyon July 10 was to ensure that the Election Commission declares the election programme to the Lok Sabha and Assembly simultaneously. However, it has now been stated that even if the Assembly is dissolved on July 14, the Election Commission can declare the programme for simultaneous elections. Therefore, the coordination committee meeting has been postponed,'' the Minister added.