Jharkhand Chief Minister Arjun Munda announced his resignation a day after the Jharkhand Mukti Morcha's (JMM) brokes ties with the ruling BJP government on Monday.
"I will meet the Governor today and will present my resignation," said Munda, who term was expected to end on Jan 10, NDTV reported.
Congress state president Pradeep Kumar Balmuchu said the party, which is in consultations with the JMM on forming a new government, is ready to consider any agreement to do away with President's rule in the tribal state, ZEE news reported.
Hours before his announcement to step down, Munda had put forward the Cabinet's decision to dissolve the 81-memeber State Assembly in the wake of the Shibu Soren-led JMM's exit from the government over differences in the rotational power sharing policy.
Earlier during the day, BJP officials called for a Cabinet meeting and the JMM's five minters had failed to show up.
"Seven ministers (of the coalition government) were present during the Cabinet meeting, and it has decided to recommend dissolution of the state assembly," Munda had told PTI.
The JMM had already submitted a letter to the governor regarding its withdrawal of support from the government.
On Monday, the JMM walked out from its alliance with the state government over a dispute concerning the chief minister post. According to a purported agreement, both parties will have their representatives become chief minister on a rotational policy of 28 months. Munda claimed that that such an agreement had never existed.
Formed in September 2010, the BJP government had the support of the JMM, six All Jharkhand Students Union (AJSU) members and two Janata Dal-United (JD-U) members.
