New Delhi, Aug 8 (PTI) Amid speculation of his nomination to the Rajya Sabha, Prime Minister'acute;s Economic Advisory Council Chairman C Rangarajan stepped down and would be succeeded by the council'acute;s member Suresh Tendulkar. "I have resigned," Rangarajan told PTI, but refused to go into the reasons for his resignation.

An official in the advisory council who did not wish to be identified said, "Rangarajan has submitted his resignation papers and orders have been issued for appointment of Suresh Tendulkar to head the council." Rangarajan, a former RBI Governor and a member of the Planning Commission, is tipped to be nominated to the Rajya Sabha. He was also Governor of Andhra Pradesh.

When contacted, Tendulkar confirmed his appointment as chairman to the EAC and said he is expected to take charge next week.

EAC sources said the resignation of Rangarajan would have no impact on the finalisation of the report on the Review of outlook of Indian Economy for 2008-09, which is expected to be submitted next week.

The council is likely to revise its forecast of GDP from 8.5 per cent to 7.5 to 8 per cent for 2008-09 while projecting that inflation may come down to 8-9 per cent by year end, sources said.

Rangarajan, a confidant of Prime Minister Manmohan Singh, is a highly respected economist of the country. He has advised the government on various contentious issues such as special economic zones, oil prices, futures trading, prices of farm commodities and measures to check the economy from overheating last year. PTI