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Janata Party vs FinMark

Parties involved in the Negotiation Process The Janata Party A Regional Political Party in the state of Madhya Pradesh. FinMark A National Political Party Overview
In the recent Lok Sabha elections, Janata Prty has won 18 seats in the State of Madhya Pradesh.On the other hand, FinMark has won a total of 230 seats out of 552 seats in the Lok Sabha across India. It has the support of other MPs from various small regional parties. However to form the Government, FinMark requires the support of Janata Party. For the first time in history, FinMark has got so many seats in Lok Sabha and therefore is extremely keen to come to power.

Present Scenario
Janata party knows that it has a very high leverage as FinMark would require its support to form the Central Government. However they believe that this is also an opportunity for them to gain National presence. Their target point is to get 3 Cabinet Ministerial births and 4 Minister of State births. It is also aiming to get a Central Fund for state of Rs 3000 crore. FinMark knows that if it wants to form the government, it requires the support of Janata Party. However it does not want to share more than 1 Cabinet and Ministerial births, as it would attract strong backlash from its other allies. Again, FinMark is ready to grant a central fund of only Rs700 crore and also wants a favorable seat sharing agreement for the next state elections in Madhya Pradesh, where currently it has no presence.(This was the target point for FinMark)

Negotiation Process
Janata Party was very adamant and aggressive in the beginning as they thought they have the power to hold FinMark at ransom. Therefore they adopted a totally distributive approach to negotiation. Because of Janata Partys aggressive and adamant approach, FinMark refused to negotiate and their meeting didnt bear any fruit. FinMark then tried to hold talks with other independent MLAs and other smaller parties. Because of this, the Janata Party invited FinMark for another round of talks. This time they decided to adopt an Integrative approach and had a set resistance point of 2 Cabinet Ministers, 2 Ministers of state and a central grant of Rs 1000 crore .FinMark had set its resistance point at 2 Cabinet Ministers, 3 Ministers of State and a central grant of Rs 1500 crore.Finally after much discussion and deliberation, it was decided that 2 Cabinet Ministers and 3 Minister of State births will be given to the Janata Party. Apart from that, they would also receive central funding of Rs 1200 crore. In return Janat a would offer FinMark a 80-20 seat sharing in the state elections. So, finally both parties were able to achieve their objective to some extent through shared interest.

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