The first cabinet reshuffle in the UPA government?s second term on Wednesday saw ministers eased out from key economic portfolios where the government has been accused of non-performance, but stopped short of removing them from the cabinet.
Prime Minister Manmohan Singh accordingly took away the ministries of food and consumer affairs from Sharad Pawar to counter charges that the government has been slow in waking up to the inflation spiral. The reshuffle was accompanied by the swearing-in of eight ministers by the President, including three of cabinet rank.
Singh also moved Jaipal Reddy from urban development to steer petroleum ministry. The oil and gas sector has run into a loss of confidence from foreign investors, with the government yet to decide a long-term gas policy. It is currently caught in a tussle for the past five months on whether to approve the Cairn India takeover by Vedanta while maintaining the interests of public sector ONGC.
But instead of dropping Murli Deora, the Prime Minister has moved him to corporate affairs. He has also moved Praful Patel from civil aviation, the minister’s role vis-a-vis public sector Air India having come under a cloud, promoting him as cabinet minister but with the responsibility of heavy industry and public enterprises instead.
The changes for Pawar and Patel also reflect the deteriorating relationship between the Congress and the NCP.
The ruling Congress party has reason to worry as several states are going to polls this year and the central government’s weak performance in critical areas could impact the results.
Among the senior ministers who got the axe was roads and highways minister Kamal Nath, who failed to live up to his promise to get 20 km of road built daily. He has moved to urban development. The steel ministry ? buffeted by the clash between the iron ore exporters and steel mills ? has been taken away from Virbhadra Singh. Its importance too has been clipped by making it report to a minister of state instead.
It will now be headed by Beni Prasad Verma, a Kurmi from Uttar Pradesh and significant from the point of view of the party?s future in the state.
To bring more urgency into rural development, Singh has cut CP Joshi?s run in the rural development ministry, alloting the portfolio to Vilasrao Deshmukh, who too has had an indifferent run in heavy industries.
The few people who came out with an improvement in their profile in the reshuffle include Ajay Maken who has been made minister of state with independent charge for youth affairs and sports. Kerala-based leaders also benefitted with the civil aviation portfolio given to Vayalar Ravi, KC Venugopal made the minister of state for power and KC Thomas getting the vital food and consumer affairs ministries. With Kerala going to polls this year, the aim of this reward was clear.