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Rakesh Mohan stays back as advisor to finance minister

BS Economy Bureau

In a sudden turn of events, Rakesh Mohan, advisor to the finance minister, has decided to stay back. A letter cancelling his earlier relieving order was issued by the finance ministry late evening on Wednesday.

Rakesh Mohan, who had put in his papers in late September, was in North Block on Thursday and attended office. He could not be contacted immediately. He left for Bombay later in the day where he is scheduled to chair a meeting of the expert committee on shipping.

According to sources, Rakesh Mohan, who is the finance ministry representative on the board of the Securities and Exchange Board of India could not attend the board meeting on Thursday.

Rakesh Mohan was relieved, as per the original order, on October 31. He had planned to return to the Industrial Development Finance Corporation as its executive vice-chairman.

Sources in the finance ministry said he would now play an even larger role in the drafting of the Economic Survey and also in the Budget-making exercise. Finance Minister Yashwant Sinha had spoken to Rakesh Mohan on Wednesday and persuaded him to stay back, sources added.

Rakesh Mohan had put all speculation to rest during a Friday meeting at North Block in the first week of October by announcing that he had indeed put in his papers. Sinha, too, later said that Rakesh Mohan's replacement would be identified soon and the latter would probably stay as the advisor till then.

In the last couple of weeks, Ashok Lahiri, director, National Institute of Public Finance and Policy and Arvind Virmani, senior advisor, Planning Commission, were tipped to be the two prospective candidates for replacing Rakesh Mohan as the advisor to the finance minister.

With pre-Budget meetings scheduled to begin from November 5, retaining Rakesh Mohan as the advisor would serve as a big boost to the finance minister.

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