New Delhi, Sep 19 (IANS): A day after key ally Trinamool Congress announced it was exiting the UPA government over its demand for roll-back of major economic decisions, the Congress Core Committee met here Wednesday to discuss the political developments.

The Congress Core Committee meeting was held at 7, Race Course Road, the residence of Prime Minister Manmohan Singh. Congress chief Sonia Gandhi was present at the meeting that began at 10 a.m.

Meanwhile, Trinamool Congress MP Kunal Ghosh has demanded the prime minister's resignation and a fresh mandate. "Before accepting the resignation of TMC ministers, PM should step down and go for a fresh mandate whether country is permitting his policies or not," he tweeted.

Trinamool chief Mamata Banerjee announced her party's decision to quit the United Progressive Alliance (UPA) government Tuesday evening, four days after the central government announced a wave of reforms aimed at kickstarting a stagnant economy.

Banerjee said that Trinamool's six ministers -- one cabinet-rank and five ministers of state -- would submit their resignations to Prime Minister Manmohan Singh in New Delhi Friday.

However, Banerjee gave a lifeline to UPA, saying she would reconsider withdrawal of support if the government took back its decision to allow foreign direct investment (FDI) in multi-brand retail, cut the hiked diesel prices by Rs.3, and raised the number of subsidised cooking gas cylinders each household can get in a year to 12.

The Trinamool has 19 members in the Lok Sabha and is the second largest constituent in the multi-party UPA.

The decision to quit brings the UPA's strength in the 545-seat Lok Sabha from 273 to 254, which is slightly below the half-way mark.

Meanwhile, the Samajwadi Party, which supports the UPA from outside with 22 MPs, is to hold its parliamentary party meeting on Thursday, sources said.

The Trinamool-UPA break-up comes ahead of a nationwide strike called Thursday by all opposition parties against last week's economic decisions.