M A I N   N E W S

PC back to Finance, Shinde gets Home, Moily Power
Anita Katyal/TNS

New Delhi, July 31
In a minor reallocation of portfolios, Home Minister P Chidambaram was today shifted to the Finance Ministry which was vacated by Pranab Mukherjee after he was declared UPA's pesidential candidate. Power Minister Sushil Kumar Shinde was named the new Home Minister while Corporate Affairs Minister Veerappa Moily has been given additional charge of the power portfolio.

The changes were announced this evening after President Pranab Mukherjee signed the formal notification.Today's reallocation does not require a formal oath-taking as it is only a change of portfolios among serving ministers. A more comprehensive reshuffle is likely to take place in September.

Shinde is also expected to be appointed Lok Sabha leader in place of Pranab Mukherjee.The announcement should come by this week-end as the UPA has to name a new leader of the House before the monsoon session of Parliament commences on August 8.

Prime Minister Manmohan Singh had taken charge of the Finance Ministry soon after Pranab Mukherjee's resignation but he was keen to shed the additional responsibility as he realised this crucial ministry required a full-time minister. He was particularly interested that this reallocation should take place before the monsoon session of Parliament so that the new incumbent can take care of the necessary parliamentary work related to the ministry.

The PM also made it known that he would like Chidambaram to be entrusted with this responsibility who, he believes, is best equipped to handle the current economic slow down. That the two leaders are on the same page as far their views on economic reforms are concerned was an additional factor which went in Chidambaram's favour.It was also no secret that the Prime Minister and Mukherjee did not see eye to eye on the handling of the economy but the PM was constrained from intervening in his ministry in view of Mukherjee's seniority.

The Fnance Mnistry is familiar territory for Chidambaram who had held the portfolio till 2008. He was moved to the Home Ministry after thae 26/11 Mumbai terror attacks in place of Shivraj Patil. Chidambaram's first stint was a roaring success as the economy during that period was booming, growth rates had risen and investor confidence was positive towards India.However, Chidambaram has a challenging task ahead. The global recession has adversely affected the Indian economy as exports have dipped, inflation is rising and the manufacturing sector stagnating.

Cabinet Rejig

• The current reallocation does not require a formal oath-taking as it is only a change of portfolios among serving ministers.
• A more comprehensive reshuffle is likely to take place in September.
• Shinde is also expected to be appointed Lok Sabha leader in place of Pranab Mukherjee.