The Congress' Kerala unit chief, Ramesh Chennithala, said Friday that the party high high command has agreed to his request to continue in the post.
Speaking to reporters soon after meeting party president Sonia Gandhi in Delhi, he said that he has been given the green signal to continue.
"I am not joining the cabinet of Oommen Chandy. Instead, my task at the moment has been designated to prepare the party to face the forthcoming Lok Sabha polls," said Chennithala.
Since Sunday, Delhi has been the venue for hectic consultations between the top Congress leaders from Kerala and the party high command.
Chennithala was staying in Delhi, while Chief Minister Chandy was shuttling between the state capital and the national capital.
Both the leaders separately met Gandhi Friday and indications were that Chennithala would join the cabinet but the issue of a suitable portfolio became contentious.
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While Chennithala wanted either the home portfolio or the post of deputy chief minister with the revenue portfolio, the former was shot down by the Chandy faction and the second option was not agreeable to the Indian Union Muslim League, which on two previous occasions held that post.
Former state Congress chief K. Muraleedharan expressed happiness that Chennithala has been asked to continue as the party chief.