The environment minister had offered to resign following the controversy over his remarks against the home ministry on Chinese imports.
Environment minister Jairam Ramesh offered to resign over his controversial remarks in Beijing but appears to have escaped the axe by a whisker today with prime minister Manmohan Singh turning it down.
Congress sources said the 56-year-old Minister, whose remarks critical of his government policies on Chinese soil caused embarrassment to the country, may have got just a temporary reprieve.
Suspense also hangs over his renomination to the Rajya Sabha with Ramesh's term coming to an end next month amid stiff opposition by a section of Congress leaders from Andhra Pradesh against fielding him from the state.
Ramesh had offered his resignation on Monday night after his controversial remarks in Beijing that the Home Ministry and the Indian security establishment were being "alarmist and paranoid" when it came to Chinese companies wanting to do business in India, raising a storm. There were demands of strong action against him by the Opposition.
PMO sources said Ramesh's offer to put in his papers has been turned down by the prime minister.
Congress spokesman Shakeel Ahmed described the issue as "closed chapter" after Prime Minister's turning down the resignation offer of Ramesh.
There was no discussion on the Ramesh issue at today's Cabinet meeting, information and broadcasting minister Ambika Songi told reporters to repeated questions on whether it had figured.
However, that Ramesh is still not out of the woods became apparent from a remark by another senior Congress leader, who declined to be identified.
"The government won't like to do any such thing just a few days before UPA II celebrates its first anniversary on May 22. But after that nothing can be ruled out," he remarked.
Earlier, strongly disapproving his remarks, the prime minister and the Congress had reprimanded Ramesh.
Apparently sensing trouble, Ramesh had tried to clarify his statement in a letter to Congress president Sonia Gandhi and the prime minister soon after his return from Beijing on Monday but it failed to cut ice.
Home minister P Chidambaram had written a strongly- worded letter to Singh, objecting to his Ramesh's remarks.
After receiving letters from Chidambaram and Ramesh, Singh had spoken to the Environment minister and told him that he should not have commented on functioning of other ministries.
Singh had told Ramesh it was "advisable for Cabinet colleagues not to make comments on the functioning of other ministries, especially with regard to relationship with important neighbours like China".
"There is no confusion in our policies towards China and we continue to strive for constructive engagement with Beijing," Singh had told Ramesh.
Ramesh had yesterday met Chidambaram and is said to have clarified the context of his statement.
Defence minister AK Antony contradicted Ramesh by making it clear that India is not paranoid over China and said the relationship between the two countries is improving and getting better even though the border dispute existed.
The Congress too had come down heavily on Ramesh, saying he had no business to criticise Government ministries in a foreign country.
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