Manmohan Singh appointed Chidambaram as the new finance minister and Shinde as the home minister.
NEW DELHI: Prime Minister Manmohan Singh today appointed Palaniappan Chidambaram as the new finance minister, while Sushilkumar Shinde has been named the new home minister in a minor reshuffle in the union cabinet.
The limited reshuffle of portfolios left open an opportunity for bigger changes after the monsoon session that would also decide if Congress general secretary Rahul Gandhi assumes a role in the government.
A reshuffle of the All India Congress Committee (AICC) is also being contemplated, party leaders said.
"The president, 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," the statement said.
"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 statement added.
Chidambaram, who earlier in the day addressed a press conference as home minister, was widely seen in the Congress circles as replacement for Pranab Mukherjee after his election as the country's president.
Chidambaram had assumed charge of home ministry when it was drawing flak over internal security situation in the country. He faces a challenging task as finance minister in the wake of slowdown in the country's GDP growth, declining value of rupee, concerns over fiscal deficit and global economic uncertainty.
Shinde, who was power minister before taking over home, is considered a loyalist of the Nehru-Gandhi family. His new appointment came even as power ministry was facing widespread criticism over breakdown of northern grid for two successive days resulting in crippling power outages in several states.
Congress sources said Shinde's appointment as home minister was an indication that he could be appointed as Leader of the House in Lok Sabha to replace of Mukherjee.
A low-profile politician, Shinde belongs to the Dalit community and his elevation to a crucial portfolio is likely to be leveraged by Congress leaders for political gains in the forthcoming elections.
Moily, who was law minister in the UPA-II government before being moved to Corporate Affairs, is considered a hands-on leader with a grip on facts and figures.
The announcements of portfolios was made in a Rashtrapati Bhavan communique Tuesday.
"The president, 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," the statement said.
"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 statement added.
Congress general secretary Janardan Dwivedi said that reshuffle was prime minister's prerogative and changes have been effected as there was vacancy in the finance ministry after Mukherjee's election as president.
The limited reshuffle of portfolios left open an opportunity for bigger changes after the monsoon session that would also decide if Congress general secretary Rahul Gandhi assumes a role in the government.
A reshuffle of the All India Congress Committee (AICC) is also being contemplated, party leaders said.
"The president, 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," the statement said.
"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 statement added.
Chidambaram, who earlier in the day addressed a press conference as home minister, was widely seen in the Congress circles as replacement for Pranab Mukherjee after his election as the country's president.
Chidambaram had assumed charge of home ministry when it was drawing flak over internal security situation in the country. He faces a challenging task as finance minister in the wake of slowdown in the country's GDP growth, declining value of rupee, concerns over fiscal deficit and global economic uncertainty.
Shinde, who was power minister before taking over home, is considered a loyalist of the Nehru-Gandhi family. His new appointment came even as power ministry was facing widespread criticism over breakdown of northern grid for two successive days resulting in crippling power outages in several states.
Congress sources said Shinde's appointment as home minister was an indication that he could be appointed as Leader of the House in Lok Sabha to replace of Mukherjee.
A low-profile politician, Shinde belongs to the Dalit community and his elevation to a crucial portfolio is likely to be leveraged by Congress leaders for political gains in the forthcoming elections.
Moily, who was law minister in the UPA-II government before being moved to Corporate Affairs, is considered a hands-on leader with a grip on facts and figures.
The announcements of portfolios was made in a Rashtrapati Bhavan communique Tuesday.
"The president, 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," the statement said.
"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 statement added.
Congress general secretary Janardan Dwivedi said that reshuffle was prime minister's prerogative and changes have been effected as there was vacancy in the finance ministry after Mukherjee's election as president.
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