In a minor Cabinet reshuffle, incumbent union Home minister P. Chidambaram was made the Finance minister. Power minister Sushilkumar Shinde was re-allocated as the country’s new Home minister. Chidambaram is likely to take charge by August 5

“The President of India, as advised by the Prime Minister, has directed that the portfolios of the following Ministers will be re-allocated as follows:- P. Chidambaram (Finance), Sushilkumar Shinde (Home Affairs),” a Rashtrapati Bhavan communiqué stated.

Meanwhile, union minister of Corporate Affairs M. Veerappa Moily was given additional charge of the ministry of Power. “Further, as advised by the Prime Minister, the President has also directed that M. Veerappa Moily, Minister of Corporate Affairs will be assigned additional charge of the Ministry of Power” the communiqué added.

Chidambaram took over from Prime Minister Manmohan Singh who had been holding temporary charge after Pranab Mukherjee resigned to contest the Presidential polls.

Congress also needs to decide and announce, before Parliament meets, who will replace Mukherjee as Leader of the Lok Sabha. There has been a demand from some Congressmen that two-term MP Rahul Gandhi be elevated to that role.

Congress president Sonia Gandhi is expected to take a decision soon; Shinde is said to be a front-runner.
Rajan set to take over as CEA

Former International Monetary Fund (IMF) chief economist Raghuram G Rajan is set to take over as the government’s chief economic adviser (CEA). Although the decision is learnt to have been endorsed by Prime Minister Manmohan Singh, an announcement is expected after P Chidambaram moves to the finance ministry in the next few days.

The government has already secured the clearance from regulatory bodies for appointing Rajan as Kaushik Basu’s successor.

Government sources said the professor at the Chicago University Booth School of Business has academic commitments in the US lasting till the end of the current semester which is two months away.  (With Agency inputs)