NEW DELHI - INDIA'S ruling Congress party was on track on Monday to win a number of key state polls, bucking predictions of a backlash from voters stung by the attacks in Mumbai and an economic downturn.

The Press Trust of India news agency reported that the Congress had chalked up victories in the capital area New Delhi and in the remote northeastern state of Mizoram as results from five state polls held over the past month came in.

Congress also looked set to wrest the northern desert state of Rajasthan from its main rival, the Hindu nationalist Bharatiya Janata Party (BJP), media projections said.

The polls are viewed as a key indicator of voter intentions ahead of national elections due by May 2009 at the latest.

The BJP appeared set to retain its hold over the central state of Chhattisgarh - despite a stiff fight from Congress - and in Madhya Pradesh.

If confirmed, the results would provide an important boost for Congress, which leads the federal coalition government and has been on the ropes over the economic slowdown and punishing inflation.

The government's record on national security has also come under the spotlight following the Islamic militant attacks in Mumbai, which left 172 dead, including nine gunmen, and exposed India's intelligence failings.

BJP president Rajnath Singh described the projected Delhi results as 'shocking as we thought we would win'.

He conceded that the BJP seemed to have lost Rajasthan, though the party would form a government in Madhya Pradesh and Chattisgarh 'as per our expectations'.

Final results were expected later on Monday, but supporters of Delhi's Chief Minister Sheila Dikshit were already celebrating outside her official residence - distributing sweets and dancing to drum beats.

'Many thanks to the people of Delhi who supported us and our slogans of development and progress,' a smiling Ms Dikshit told cheering colleagues.

'It's an outright rejection' of the BJP playing up 'the terror card', she said adding: 'The people of Delhi have given a fitting reply.'

During the more recent polls - held as Mumbai was still under a state of siege - the BJP had painted Congress as being 'soft on terror'.

Congress party spokeswoman Jayanti Natarajan admitted the Mumbai terror attack had been a 'worrying factor' for party strategists.

But another Congress spokesman Tom Vadakkan said the results 'showed that terror is a national issue and not an issue patented by one party.' Political analyst Rasheed Kidwai described the expected Congress victory in Delhi as 'a very, very remarkable achievement'.

'Bucking anti-incumbency is a big thing, but the Delhi chief minister has also beaten the BJP's twin campaign planks - price rises and terror,' said Mr Kidwai. -- AFP