The sources said talks were in an advanced stage and a formal announcement is expected soon.
Chief Minister Patnaik held discussions with senior BJD leaders at his residence in Bhubaneswar Wednesday evening to discuss the aspects of the alliance. The BJP leadership also held a meeting with party leaders from Odisha in New Delhi over the possible tie-up.
Senior BJP leader and former Union minister Jual Oram, who attended the meeting in New Delhi, said they have apprised the central leadership of the political scenario in all 147 Assembly seats and 21 Lok Sabha seats in Odisha.
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