Here are the latest developments:
The alliance was announced at a press conference attended by Mr Naidu, BJP spokesperson Prakash Javadekar and senior Shiromani Akali Dal leader Naresh Gujral. "I am delighted to inform you that Chandrababu Naidu's TDP will be part of the NDA now," said Mr Gujral, who mediated between the two parties to hammer out a seat-sharing arrangement. (BJP announces alliance with Chandrababu Naidu's TDP)
As part of the deal, the BJP will contest eight parliamentary and 47 Assembly seats in Telangana and five Lok Sabha and 15 Assembly seats in Seemandhra, which will form the residuary state after the bifurcation of Andhra Pradesh. The region of Telangana will be born as India's 29th state on June 2.
Elections to 119 assembly and 17 Lok Sabha seats in Telangana are scheduled for April 30 while 175 assembly and 25 Lok Sabha constituencies in Seemandhra will go to polls on May 7. (India Votes 2014: full coverage)
Describing the alliance as a "lucky one," Mr Naidu exuded confidence that the BJP-led National Democratic Alliance (NDA) would win over 300 seats in the general elections.
"Modi is a development man. Irrespective of religion, region and communities, Modi is being supported," said the TDP chief, who had supported the NDA government but parted ways in 2004 over the communal riots in Gujarat.
Today's tie-up, though, was marred by protests by local TDP leaders outside Mr Naidu's residence in Hyderabad. They are upset with the party reportedly giving away the Vijayawada Central and Malkajgiri assembly seats to the BJP.
Requesting the agitating party workers to cooperate, Mr Naidu said the list of the constituencies to be contested by the parties would be declared in a couple of days.
Local BJP leaders, on their part, have also opposed the alliance. Yesterday, seven of the 10 district presidents of the party in Telangana reportedly threatened to resign in the event of a tie-up.
Mr Naidu is expected to be spurned by Telangana voters for not championing their cause. For the same reason, he is likely to be rewarded in the regions of Seemandhra that will form the down-sized Andhra Pradesh.
NDTV's opinion poll shows a big leap for Mr Naidu in Seemandhra; his party gets 14 of the 25 parliamentary seats at stake, according to the forecast. That's a gain of 10 seats from 2009. It will also give him the majority he needs to be Chief Minister of the residuary state. (NDTV Opinion Poll: Chandrababu Naidu makes big gains in Seemandhra)
Chandrababu Naidu Seeks More Funds For Andhra In Meeting With Amit Shah: Report Andhra Government To Give Rs 10 Lakh To Family Of Gang Rape Survivor "Degrees Won't Do, Open A Puncture Repair Shop": BJP Madhya Pradesh MLA Homeless Man, Carrying Knives, Shot Dead By Cops Outside Republican Event 4 Top Leaders Quit Ajit Pawar's Party In Major Setback After Poll Drubbing Karnataka's 100% Quota Bill For Kannadigas In Private Firms For These Posts Watch: Sun Unleashes Powerful Solar Flare, Australia And Japan Hit Mumbai University Invites Applications For MCA And MMS Courses Homeless Man, Carrying Knives, Shot Dead By Cops Outside Republican Event Track Latest News Live on NDTV.com and get news updates from India and around the world.