Nancy Powell's resignation: More to the decision than meets the eye

NEW DELHI: There seems to be more than meets the eye over Ambassador Nancy Powell's decision to step down from her post and pave the way for her successor post Lok Sabha elections.

While official sources doubted her clout in Washington to improve ties and questioned her handling of the Devyani Khobragade episode, sources close to Powell claimed that her decision was shaped by growing disconnect between her and Secretary of State John Kerry and US National Security Adviser Susan Rice.

Both Kerry and Rice want a tougher line on India in the backdrop of key US businesses including nuclear industry failing to expand their presence here. But her detractors stress that Powell was a lightweight to influence Kerry and Rice. The two senior officials also did not agree with Powell's suggestions for deescalation after Khobragade's arrest, sources claimed.

Sources also claimed that US industry particularly the nuclear firms were not very happy with her level of support and lobbying with the Indian government. US nuclear major Westinghouse that has entered into a pre-early works agreement with the Nuclear Power Corporation of India Limited is nowhere near signing the contract following continuing differences over the Nuclear Liability Law.

The State Department has denied “no big behind the scenes story” behind Powell's resignation. “All the rumours and speculation are, quite frankly, totally false. She is retiring, after 37 years - returning home to Delaware by the end of May,” State Department Deputy Spokesperson Marie Harf told reporters on Monday when asked about US envoy Powell's announcement that she has sent her resignation to President Barack Obama.