"Our party welcomes the decision. We have decided to call off the proposed rail and road blockade stir tomorrow as our demand has been met. However, if the state government does not perform bhoomi pujan on the spot by December 6, we will go ahead with our agitation," Republican Party of India (Athawale) leader Ramdas Athawale said.
Maharashtra Pradesh Congress Committee (MPCC) chief Manikrao Thakre also welcomed the cabinet decision and thanked Prime Minister Manmohan Singh for the move.
The Union Cabinet took the decision at a meeting chaired by Prime Minister Manmohan Singh and approved the proposal empowering the Centre to acquire a certain part of the Indu Mills land, which originally belongs to the National Textile Corporation Limited in Mumbai, to construct the memorial.
Sources said that the union government would introduce a bill in Parliament to facilitate the transfer of land to the Maharashtra government.
Dr Ambedkar's ashes are currently interred at Chaitya Bhoomi, which is near Indu Mills.


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