New Delhi, Jan. 16: India’s current ambassador to Nepal Shyam Saran might be replaced soon. A decision to this effect is understood to have been taken by the Prime Minister who has agreed to appoint Shiv Mukherjee, at present India’s ambassador to South Africa, to head the mission in Kathmandu.

Sources said Mukherjee’s name has also been cleared by President A.P.J. Abdul Kalam as India’s new ambassador to Nepal.

But for Saran, who was pulled out of Indonesia two years ago to be sent to Nepal, the recall to Delhi should not be seen as a demotion. Indications suggest that if he comes to South Block, he would be made a secretary and later might even be appointed foreign secretary.

Sources, however, said Saran was not too keen to return to Delhi at this juncture and might still try and stay back in Kathmandu, as he considers it a challenging and rewarding posting. But if Atal Bihari Vajpayee wants to bring him back then Saran might find it difficult not to return to Delhi and take up his new assignment.

Nepal is one of the key postings for an Indian diplomat as relations between the two countries have a history of unpredictability and require handling with extreme care and dexterity. But as part of its extended neighbourhood and given the historical ties that India enjoys with Nepal, an Indian ambassador could also play a very important role in Kathmandu.

There are few political developments in Nepal to which India could turn a blind eye and, irrespective of their political ideologies, almost all political parties in Nepal depend on Indian support in some way or the other for their survival and legitimacy.

The political situation in Nepal over the past several years has remained unpredictable and unstable. Not a single democratically-elected government has so far managed to complete a full term in Nepal and political uncertainty there has increased considerably in the last few years.

Sources said Saran is reluctant to return to Delhi as he had not been given any categorical assurance that after some months — which might even extend to a year — he would be appointed foreign secretary.

In the past, many aspirants to the foreign secretary’s chair have not been able to make it to the coveted post despite assurances from key figures in the government.

This might be one of the deterrents that has made Saran reluctant to take up his new assignment in the South Block.