NEW DELHI, November 7: Eminent economist and currently member-secretary of the Planning Commission, Bimal Jalan, has been appointed as the Reserve Bank governor, replacing C Rangarajan who moves on to Andhra Pradesh as state governor.

Announcing the decision of the United Front government to select Jalan as the new RBI chief here on Friday, finance minister P Chidambaram said that his appointment "signals continuity of policy and will be received well throughout the world."

According to the minister, Jalan has carved a niche for himself through his novel approach to planning.

The minister further added that Jalan's appointment would initially be for a period of three years. The new incumbent will take over as central bank chief as soon as Rangarajan assumes his new office as state governor. Rangarajan was appointed as state governor by the President earlier in the day.

According to Chidambaram, Jalan had contributed greatly to the new approach to the Ninth Plan and had been executive director with the International Monetary Fund and World Bank. He has held several key government positions as banking secretary, finance secretary and chairman of the economic advisory council to the prime minister.

During the Narasimha Rao government, Jalan moved to the World Bank as an executive director before returning as member-secretary of the Planning Commission in 1996. He recently authored the policy for independent Internet service providers, advocating abolition of VSNL monopoly.

Jalan, when contacted by newspersons, refused to be dragged into a debate on the monetary policy, saying he had not even received a formal communication on his assignment.

"You are the first ones to tell me about my new job. How do you expect me to react so soon?" he told reporters at the Planning Commission office. The government has entrusted him with an important task and he has to take it up, he said.

Jalan promised he would talk about the economy and his priorities at a later date. "It would not be proper for me to react at this juncture. After all, I have not even received a formal communication about the new job," he said.During the press conference, Chidambaram also appreciated the role played by Rangarajan as RBI chief for his "exemplary management of monetary policy" during the last six-and-a-half years. Rangarajan also served the RBI as deputy governor for 10 years.

Describing Rangarajan as a wise counsellor to the finance ministry, Chidambaram said that his presence as the head of the state in Andhra Pradesh would greatly benefit the government and people of the state.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.