He was 85.
Venkataswamy, who had been keeping indifferent health for the last couple of years, was admitted to a private hospital here and the end came tonight, hospital sources said.
In a career spanning about five decades, Venkataswamy served as a parliamentarian for seven terms, the last being in 2004. He was first elected to the undivided Andhra Pradesh Assembly in 1950s.
In his political career, he held various positions including Union Minister (in the government of P V Narasimha Rao), minister in undivided Andhra Pradesh, MLA and PCC president.
Venkataswamy, born in Hyderabad, had been a staunch supporter of separate Telangana cause and voiced the demand at different fora.
Venkataswamy's sons are G Vinod, a former minister in undivided AP, and G Vivek, a former Lok Sabha member.
The veteran leader had expressed a wish to become President and his remarks on the issue, however, did not go down well with Congress.
Union Ministers M Venkaiah Naidu, Bandaru Dattatreya and other BJP leaders condoled the death of Venkataswamy, a BJP release said.
Condoling the death of Venkataswamy, Telangana Chief Minister K Chandrasekhar Rao asked the Chief Secretary to conduct the funeral of the departed leader with state honours, a release said.
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