Y.S.R. Reddy, chief minister of Andhra Pradesh, helped engineer the Congress party-led coalition's victory in the general election in May. His state is home to many IT firms and outsourcing businesses, important elements of the country’s growing and globalising economy.
Reddy had been missing since his helicopter crashed in jungle-clad hills on Wednesday and exploded. The other four people on board were also killed, officials said.
"The aircraft is broken up into several parts and is charred, the bodies are also charred," Home Minister Palaniappan Chidambaram said in New Delhi.
Reddy's death could trigger a power struggle in the state and would also affect development in Andhra Pradesh, where Reddy was known for championing popular causes and for wooing investors, analysts said.
"He was one person who was keeping various groups together within the party and they will find it difficult to replace him and ultimately his absence could lead to a power struggle in the state," said political commentator Kuldip Nayar.
K. Rosaiah, the finance minister, was later sworn in as the caretaker chief minister of Andhra Pradesh. He will serve until the party chooses a new leader, officials said.
D.H. Pai Panandikar, head of economic think tank the RPG Foundation, said Reddy had been carrying out a lot of development work and his death was a setback to investment, politics and business.
Reddy was on a tour of a rural district when his Bell-430 helicopter went missing on Wednesday over a dense forest known to be a tiger habitat, as well as a stronghold of Maoist rebels.It was not immediately known how the helicopter crashed but some officials said it had been caught in bad weather.
Officials launched a wide search after it went missing, deploying hundreds of police, soldiers and tribesmen from the area. Air force fighter jets were also deployed and a satellite undertook thermal imaging of the area.
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