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May 23, 2001
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Pacified Godbole withdraws resignation

Priya Ganapati in Bombay

Madhav Godbole, the man at the center of the latest crisis to hit l'affaire Enron, has withdrawn his resignation.

"I have taken it (the resignation) back based on a letter that has come from the Maharashtra chief minister. In view of its contents I have decided not to press for the acceptance of my resignation," Godbole told rediff.com.

Meanwhile, it is learnt that the panel's meeting with the representatives of the Dabhol Power Company for renegotiation of the PPA will now be held on May 29. The meeting, which was earlier scheduled for Wednesday, was cancelled in the wake of Godbole's resignation from the panel.

Godbole, the chairman of the panel set up to renegotiate the power purchase agreement with the Dabhol Power Company, had submitted his resignation to the chief minister on Wednesday morning.

His resignation was in response to an adverse comment made against him by the NCP president Sharad Pawar at a public function on Tuesday night.

However, following a request by Maharashtra Chief Minister Vilasrao Deshmukh to withdraw his resignation, Godbole said that he has decided not to press his case.

Earlier on Wednesday, the Maharashtra chief minister had appealed to Godbole not to quit the panel.

Deshmukh's public appeal was followed by a Cabinet meeting to discuss the situation and a letter requesting Godbole to reconsider his decision was sent on Wednesday afternoon.

"The letter said that the Cabinet had unanimously decided not to accept the resignation and has reposed full faith in my leadership," Godbole said.

However, when rediff.com had spoken to him earlier, Godbole seemed firm on his decision to quit from the renegotiations panel.

So, what was the reason which brought about a change in his stand?

"When you are in public service and the entire Cabinet requests you, then I think it is only fair that you should accept it," Godbole commented.

Godbole's resignation came as a surprise to many, who speculated that he had probably taken the step after much contemplation.

On receiving the news of Godbole's resignation, a source close to the committee said, "Godbole has been a bureaucrat for several years. He has dealt with many politicians throughout his career and I am sure criticisms are something he has been subjected to before in his career. So, naturally his decision to withdraw over Sharad Pawar's criticism seems questionable."

But Godbole scoffed at such speculation. "Yes. I have been a bureaucrat for long. But I am now a public person. And as a public person I think that I cannot function effectively if my hands are weakened by criticisms."

Godbole denied that his resignation was a knee-jerk response to Sharad Pawar's comments against him. In an apparent criticism of Godbole, Pawar had said, he was "apprehensive of the outcome of the discussions with Enron as those leading the talks from the government side are working with a negative approach".

"It is not that I felt bad. But the moment politicians start weakening the hands of those in public service, I feel I must protest against it," Godbole said.

YOU MAY ALSO WANT TO READ:
The Enron Saga
'We will clear Godbole's misunderstandings'
CM asks Godbole to withdraw resignation; meet with DPC called off
DPC to attend Godbole panel meet on Wednesday
DPC lenders may skip June 4-6 meet in Singapore
DPC faces fresh Rs 4 billion penalty
Enron Indian lenders to lobby for government help
Enron's Indian lenders spooked by pull-out threat
Enron, Indian panel to meet on May 23
India tells Enron to renegotiate Dabhol contract

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