a result, he decided to seek reconciliation with the Gaekwads. In March 1752, Damaji finally agreed to abandon Dabhades and join Balaji Rao. In return, he was made the Maratha chief of Gujarat, and Balaji Rao offered him assistance in expelling the Mughals from Gujarat. Gaekwad promised to pay an annual tribute of 525,000 to Peshwa in addition to a one-time payment of 1,500,000. He was also asked to maintain a cavalry of 20,000 horses in service of the Peshwa. Campaign against the Nizam In 1751, Balaji Rao had invaded the territories of Nizam of Hyderabad Salabat Jung, who was supported by the French Governor-General of Pondicherry Marquis de Bussy-Castelnau. Due to Tarabai's rebellion and the French-trained enemy troops, the Marathas had to retreat. In 1752, Balaji Rao launched a fresh attack against the Nizam. He also sought support of the English to counter the French, but the English refused to get involved in the conflict. The Marathas wanted Salabat Jung's brother Ghazi ud-Din Khan to be appointed as the Nizam; as he had promised them a payment of 6,000,000 among other favours. However, Khan was poisoned to death by his step-mother. Ultimately, Balaji Rao and Marquis de Bussy-Castelnau concluded a peace treaty. Raghoji Bhonsle also agreed to peace on the condition that Nizam would grant him some jagirs in Berar. Relations with Rajputs Balaji's father Baji Rao aimed to establish a Hindu Padshahi (Hindu kingship) in India, and maintained good relations with the Hindu Rajputs. However, during Balaji Rao's tenure, the Marathas alienated the Rajput rulers. When Jai Singh II of Jaipur died in 1743, a war of succession broke out between his sons Ishwari Singh and Madho Singh. Madho was supported by Jagat Singh II of Mewar and Ummed Singh of Bundi. The Marathas, however, initially supported Ishwari, simply because he offered them more money. Later, Jagat Singh was able to enlist Malhar Rao Holkar on Madho's side, while Jayappa Rao Scindia continued to support Ishwari. This episode not only spoiled the Maratha relations with the Rajputs, but also resulted in internal strife among the Marathas. Madho Singh later sought arbitration from Balaji Rao, who personally came to Jaipur and convinced Ishwari Singh to cede 4 mahals to Madho Singh. Ishwari Singh initially agreed, but refused to abide by his promise after Balaji returned to Pune. Malhar Rao Holkar then not only forcefully captured the mahals for Madho,