Evaluation of 32 parental lines using D2 analysis during kharif 2006 at MARS, Dharwad revealed that altogether 11 clusters formed, among which the cluster V with as many as six genotypes namely VI-46 NB, V- 2 Br, IV-57 NB, V-20 Br, VI-77 Br  DSI-1017 was the largest. This was followed by cluster VI  with five genotypes (RHA-298 NB, X-15 Br, RHA-857 Br, 17B and RHA-274 NB), cluster I (DSF-2, CMS-234B, NDOL-2 and NDOL-3) and cluster III (RHA-265 NB, RHA- 274 NB, RHA-64 NB and an inbred line DSI-1) with four genotypes each. Three genotypes IX-11 NB, RHA-271 Br and DSF-15 B appeared in cluster IV, while the clusters II (VI- 78 NB and NDBLOS-4-9 Br), cluster VII (DM-B and X-13 NB), cluster VIII (V-4 NB and RHA-95-C-1 Br) and cluster X (RHA-857 NB and 6.D-1 Br) shared two genotypes each. An inbred DSI-2 in cluster IX and 207 B in XI were solitary, is an indication of prevalence of certain extent of diversity in the material maintained. Based on inter cluster distances, it can be considered that the parents belonging to clusters I and VIII are more diverse (D2 = 175.28) followed by clusters I and VII (168.92), I and IX (168.49) and I and II (167.67) suggesting that hybridization between divergent groups may lead to higher magnitude of heterosis for the characters concerned. The clusters IX is grouped with genotypes for high yield, high oil content, test weight, The important character contributing to the total divergence observed to be oil content. The traits like days to 50 per cent flowering and days to maturity have been next in the order.