Palaniswami, who was sworn in on Thursday as Chief Minister, won by 122 voice votes.
He belongs to the AIADMK faction led by party General Secretary V.K. Sasikala.
The southern state, that has not seen a day without hectic political developments since the past 10 days, is poised for another day of intense political activity with the scene shifting to the state assembly.
Palaniswami, 63, a senior leader in the ruling AIADMK of the V.K. Sasikala camp, was sworn in on Thursday. He needs the support of 117 legislators to continue in the post.
The AIADMK party commands the support of 124 legislators, including the Speaker, while the breakaway group led by former Chief Minister Panneerselvam has 11 legislators.
The other opposition includes DMK with 89 members, Congress - eight, Indian Union Muslim League with one, and one seat is vacant. The DMK has said it will vote against the government, while the Congress has said it will wait for the party high command's directive. However, the Congress has indicated it will vote against the Palaniswami government.
The DMK (minus its President M. Karunanidhi who is unwell has 88 legislators to vote), Along with the Congress and Indian Union of Muslim League, the opposition group comes to 97.
The Panneerselvam camp has the support of 11, taking the tally against Palaniswami to 108. If there is some cross-voting to the tune of 10 legislators from Sasikala's camp then it could be the end for Palaniswami.
The assembly has a total strength of 234 of which one seat is vacant.
On Friday, the Chief Minister's support base suffered erosion by one legislator.
AIADMK legislator representing Mylapore constituency and former Director General of Police (DGP) R. Nataraj said he would vote against Palaniswami.
Following Nataraj's about-turn at the last minute, Palaniswami's support base is down to 124 legislators.
Meanwhile, a week after he was sacked from the AIADMK, former party Presidium Chairman E. Madhusudanan on Friday in turn "dismissed" General Secretary V.K. Sasikala, Chief Minister Palaniswami Deputy General Secretary T.T.V. Dinakaran, Deputy Speaker of the Lok Sabha M.Thambidurai, A. Navaneethakrishnan, Thangamani, N.Dalavai Sundaram, Valarmathi, R.B. Udhayakumar, C.Ve. Shanmugam and S. Venkatesh -- from the party's primary membership.
The vote of confidence is being held following a split in the AIADMK party after Panneerselvam revolted against General Secretary V.K. Sasikala charging her of forcing him to quit.
Sasikala is now in a jail in Bengaluru after being convicted in a corruption case.
On Thursday, Palaniswami was sworn in as Chief Minister and 30 ministers also took oath.
Majority of legislators belonging to Sasikala camp are housed in a beach resort around 90 km from here and Panneerselvam hopes to get some votes from those legislators.
After holding hectic discussions at Panneerselvam's residence on Friday morning, a small group of AIADMK leaders met the Speaker in the Secretariat and demanded secret ballot.
Speaking to reporters, S. Semmalai, part of the Panneerselvam camp, said they have urged the Speaker for a secret ballot to decide on the motion of confidence.
"Panneerselvam and the legislators supporting him should openly vote against the motion of confidence and to build on the credibility in the people's mind space," K.C. Palaniswamy, a former MP of AIADMK, told IANS on Friday.
On the other hand if secret ballot on the confidence motion is allowed and a whip is issued the issue before the Panneerselavam camp is whether to abide by the whip or disobey.
"In case if they disobey, whether they could be disqualified as legislators under the anti-defection law is a point to ponder," an AIADMK leader said.
"The party whip has to take orders from the leader before issuing any whip on the way in which legislators are to vote. In AIADMK's case the appointment of Sasikala as General Secretary is under dispute and also the appointments made by her. So that question would have to be decided before any legislator can be disqualified," Palaniswamy said.
Sasikala had recently dismissed Panneerselvam and former Minister K. Pandiarajan from the primary membership of the party and both are outside the purview of the anti-defection law.
DMK General Secretary K. Anbazhagan has predicted the government will not survive.
On Thursday, MPs belonging to the Panneerselvam camp had met Election Commission officials and petitioned to disqualify Sasikala's appointment as General Secretary.
Patnaik made the request of return of Odias to the Tamil Nadu chief minister through video conferencing which was also attended by Union Petroleum and Steel Minister Dharmendra Pradhan.
Pradhan agreed to coordinate between the two states for trouble-free movement of the stranded people to Odisha.
The Tamil Nadu CM informed that there are 1,30,000 workers from Odisha working in the state, mostly in Tirupur district.
Patnaik thanked Palaniswami for personally visiting some of the camps where Odia people are grounded. He deputed CMs advisor R Balakrishnan to coordinate with Tamil Nadu on behalf of Odisha.
Patnaik also spoke to some of the odia people held up and presently staying at Guru Nanak College in Chennai.
A large number of natives of Odisha including migrant workers, fishermen, students and professional are stuck in different parts of Tamil Nadu and unable to return home due to lockdown.
Both the governments agreed to cooperate with each other for facilitating smooth movement of people.
Earlier, Patnaik had spoken to the chief ministers of Gujarat and Maharastra where Odia people are also stranded due to the lockdown imposed to contain spread of COVID-19 pandemic.
A batch of migrant workers have already returned home from Gujarat and a group of students are on their way back to the state from Kota in Rajasthan.
The people who are stuck in other parts of the country have to register their names with Aadhar number and mobile phone number in a portal launched by the Odisha government.
On their arrival in the state, the returnees will have to undergo mandatory quarantine in Odisha.
The state government has opened temporary medical camps and quarantine centres in all the 6798 gram panchayats and over 100 urban local bodies to keep the returnees in quarantine before allowing them to go to their houses.
Meanwhile, State Governments COVID-19 spokesperson Subroto Bagchi said Odisha has been taking steps to ensure return of Odias stranded in different places as per the guidelines issued by the Centre.
(PTI)
Party co-coordinator Palaniswami announced constitution of a 11-member steering committee which includes Ministers Dindigul C Sreenivasan, P Thangamani, and S P Velumani.
Addressing a crowded press conference along with Palaniswami and other senior leaders at the party headquarters, AIADMK coordinator Panneerselvam said: "I am happy to announce that our dear brother Palaniswami will be the victorious Chief Ministerial candidate of the AIADMK for the 2021 Assembly elections."
The decision has been taken unanimously in consultations led by party presidium chairman E Madusudanan, he said.
Apart from him, Palaniswami, party deputy coordinators K P Munusamy, R Vaithilingam and members of the Steering Committee have unanimously resolved to nominate Palaniswami as the AIADMK's Chief Ministerial candidate, he announced amid a thunderous applause.
The much awaited twin announcements have brought the curtain down on speculations over the CM candidate of the ruling party and ended intra-party differences over setting up the panel.
(IANS)