The Board President's XI have been bowled out for 230 by Australia, after Ambati Rayudu's brilliant 87.
The visitors will now bat for 40 minutes before the match ends in a draw.
Ambati Rayudu struck a fine unbeaten half century as the Board President's XI reached 171 for six in their chase of 242 against Australia.
Rayudu followed up his Irani Cup ton with another fine performance as he held fort at Chennai, after the rest of his team collapsed.
Australia picked two quick wickets after lunch to peg the Board President's XI at 103 for five.
Nathan Lyon got his second wicket of the day when he got Kedar Jadhav (1) to edge to 'keeper Matthew Wade in the first over of the second session.
All-rounder Glenn Maxwell, the highest paid player in the recent IPL auction, then sent Parthiv Patel packing for 23.
Ambati Rayudu (23 not out) is still at the crease.
At lunch on Day Two, the Board President's XI are on 61 for three, trailing Australia by 193 runs. Ambati Rayudu (10 not out) and Kedar Jadhav (1 not out) are at the crease.
Moises Henriques bagged two quick wickets to restrict the Board President's XI to 60 for three. Henriques scalped captain Abhinav Mukund (21) and Mandeep Singh (3).
Australian spinner Nathan Lyon took the first wicket of the day when he dismissed Robin Uthappa for 24. The Board President's XI are on 47 for one in 20 overs, trailing the visitors by 194 runs.
Openers Abhinav Mukund (11 not out) and Robin Uthappa (16 not out) provided a sound start to the Board President's XI in their chase of Australia's 241.
The hosts had reached 28 for no loss in 10 overs, with James Pattinson and Jackson Bird opening the bowling.
Indian Board President's XI all-rounder Parvez Rassol spun a web around the Australians to bowl them out for 241 on Day One of the warm-up match.
The hosts will now look to win the match on the second and final day when they come out to bat.
Australia, playing their first match of the India tour, batted for 88.3 overs after choosing to bat at the Guru Nanak Ground.
Openers Ed Cowan (58) and Usman Khawaja (32) provided a good start before fall of wickets at regular intervals cut short Australia's batting practice.
Matthew Wade, captaining the side in the absence of Michael Clarke, made 35 while Steven Smith scored 41.
Rassol was the star for the home team, picking seven wickets for 45 runs in 28.3 overs. Medium pacers Shami Ahmed and Parwinder Awana went wicketless while leggie Sarabjit Ladda took a couple.
(with inpust from IANS)
Brief Scores Australia 241 (Ed Cowan 58, Steven Smith 41; Parvez Rassol 7 for 45) lead Indian Board President's XI 171 for 6 (Ambati Rayudu 71*; Moises Henriques 2 for 7, Nathan Lyon 2 for 53) by 70 runs.
First Published: February 13, 2013, 9:13 am