KCR demanded inclusion of Telangana issue in UPA announced Common Minimum Programme for giving support to UPA. As congress accepted this KCR agreed to join the Union government.

• Similarly, the Leftist parties also extended support to UPA which resulted in the formation of UPA government under the leadership of Congress and the prime ministership of Manmohan Singh. Yet, KCR declined to join the state government headed by YSR. On May 13, 2004 Raja Shekhar Reddy took the oath of office as Chief Ministar. However, the YSR cabinet was formed without TRS.
• In May 2004, the UPA government allotted the shipping Ministry to KCR and Rural Development Ministry to Ale Narendra. But, DMK, one of the allied parties of UPA strongly demanded the shipping Ministry. The Congress party was in a dilemma. Understanding the situation and stating clearly that their main aim was attaining Telangana but not ministry, KCR voluntarily left his post within 24 hours of assuming the office.
• He continued as a minister without portfolio for six months. He was allotted the Ministry of labor and employment later. At this time elections were announced to Rajya Sabha. As TRS had 26 Assembly members, one Rajayasabha seat was to be allotted to it.
• The CPM with only 9 seats demanded it. Inorderto pull Congress out of a difficult situation KCR relinquished the Rajya Sabha Membership as he gave up the Ministership. On May 26, 2004, congress fulfilled its promise by adding the issue of Telangana in the Common Minimum Programme.