 Then Arjun Munda of BJP-led NDA became the CM, whom Koda supported and he was appointed as the Minister of Mining Geology and Cooperative

In September 2006, Madhu and three other independent legislators withdrew support to the Munda government, bringing it into the minority and led to resignation of Munda The United Progressive Alliance decided on him as consensus candidate to become Chief Minister and Koda became the next CM of Jharkhand on 14 Sept, 2006.His government included the representatives of the Jharkhand Mukti Morcha, Rashtriya Janata Dal, Jaua Manjhi group, Nationalist Congress Party, All India Forward Bloc, three independent MLAs (besides himself), and the outside support of the Indian National Congress.On 12 Aug 2008 Shibu Soren again staked claim for the post of CM and wanted Koda to resign.