Cabinet reshuffle frees Cong hand for reforms

Braving a volatile political setting where it fights a spate of alleged scandals bereft of any solid backing from its cautious allies and "outside-supporters", the Congress on Sunday went in for a major rejig of the Union Cabinet, probably the last before the next general elections. The exercise saw a change of guard at several key ministries including petroleum, railways, power and corporate affairs, and exhibited the ruling party's determination not to be pushed back by its detractors and refusal to let go the latest vigour in economic decision-making.

While seven Cabinet ministers and 15 ministers of state were sworn in and many key portfolios re-allocated, the outcome was what could be termed a near 100% Congress government after several years. With railways, held by former ally Trinamool Congress until last month, also now firmly in the Congress kitty and the DMK sticking to its decision to not join the Cabinet, there is not a single economic ministry where a non-Congress person is at the helm. So the Congress will now have only itself to blame in case of a policy imbroglio that could endanger the economy, which is witnessing downbeat investment sentiments for long.

Prime Minister Manmohan Singh said the changes would result in "a combination of youth and experience" and ruled out early elections but analysts, mindful of the political situation and the persistence of dismal economic numbers of late, were guarded in their reactions.

As for the key changes, Veerappa Moily replaced Jaipal Reddy (who was shifted to the ministry science and technology ) as petroleum minister, Salman Khurshid became the external affairs minister and Pawan Kumar Bansal got railways. Telecom minister Kapil Sibal ceded the human resource development portfolio to MM Pallam Raju, who has been promoted to Cabinet rank.

Jyotiraditya Scindia was given the crucial power portfolio and Sachin Pilot corporate affairs – both ministers of state with independent change. Ashwani Kumar was promoted to Cabinet rank and made minister for law and justice.

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