Senior AIADMK leader and Lok Sabha Deputy Speaker M Thambidurai, however, dismissed any threat to the government in the wake of revolt by the 18 MLAs, who have expressed lack of confidence in Palaniswami's leadership.
He said the state government was strong and there was no division in the party.
On yet another day of hectic political developments in the state, Dhinakaran, nephew of jailed AIADMK chief V K Sasikala, sought to assert his authority by stripping four ministers of party posts while MLAs loyal to him continued to stay put in a resort in Puducherry.
In the 234-member assembly, the AIADMK has 134 MLAs.
Sasikala's brother V Divakaran, meanwhile, claimed the Palaniswami ministry had "lost majority" and sought his resignation.
"Such a government cannot continue. Palaniswami has to resign," he told reporters at Kumbakonam.
Thambidurai told reporters in Chennai that the "Tamil Nadu government under the leadership of Palaniswami is strong. There are no divisions," he added.
Addressing the centenary celebrations of AIADMK founder and late chief minister M G Ramachandran, the two leaders heaped praises on him and late chief minister J Jayalalithaa.
Palaniswami said the recent merger of the two factions was done with the aim of fulfiling the dreams of Ramachandran and Jayalalithaa and expressed joy over today's meeting.
The chief minister, facing an attack from the Dhinakaran camp over the merger, stressed on unity to take the party and government forward.
Like Jayalalitha, he also narrated a short story of a godman making the residents of a village realise the value of unity.
"People will not accept those as leaders who had not done any public service. MGR (Ramachandran) won hearts by public service. Amma later gave shape to his ideas," he said.
In his address at the function, Panneerselvam said Jayalalithaa had turned the AIADMK into "an iron fortress which cannot be shaken by anyone".
A day after meeting the governor, the MLAs supporting the combative Dhinakaran, stayed put at a private resort in neighbouring Puducherry. They largely remained indoors.
A few of them, including Andipatti MLA Thangatamilselvan, went out for morning walk at the beach there.
Police personnel have been deployed outside the resort and media was not allowed to enter the premises.
The local wing of the unified AIADMK burned effigies of Dhinakaran, nephew of Sasikala, near the resort and raised slogans against them.
In separate statements, Dhinakaran announced the appointments of his aides to these posts and also relieved the district secretaries of Chennai (South), Kancheepuram, Thiruvallore (West) and Pudukottai of their duties.
In the Dravidian parties' hierarchy, district secretaries play a key role in the organisational growth.
Dhinakaran also appointed a number of his supporters to various others posts including that of the organisation secretary, besides expanding the office-bearers list.
The appointments were made with the "approval" of Sasikala, he said.
Under the arrangement, Panneerselvam was made deputy chief minister and the coordinator of the party. Palaniswami was named co-coordinator.
It was also agreed that steps would be taken to expel Sasikala, which was a pre-condition for the merger.
In the wake of differences in the ruling party, the DMK has demanded a floor test in the assembly to prove that the government was in a majority.
In Puducherry, former MLA Om Sakthi Segar led the protest against Sasikala and Dhinakaran and submitted a petition to the district collector and SP asking them to instruct the MLAs to vacate the resort in the "larger interest of law and order".
Disclaimer: No Business Standard Journalist was involved in creation of this content
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