In 1963 he suggested to Nehru that senior Congress leaders should leave ministerial posts to take up organisational work. This suggestion came to be known as the Kamaraj Plan, which was designed primarily to dispel from the minds of Congressmen the lure of power, creating in its place a dedicated attachment to the objectives and policies of the organisation. Six Union Ministers and six Chief Ministers including Lal Bahadur Shastri, Jagjivan Ram, Morarji Desai, Biju Patnaik and S.K. Patil followed suit and resigned from their posts.

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