Big Cabinet reshuffle likely mid-Sept, SM Krishna, Jaipal Reddy may settle for state-level positions

NEW DELHI: Prime Minister Manmohan Singh is likely to carry out a major reshuffle of his Cabinet in the second week of September, which could see heavyweights such as SM Krishna and Jaipal Reddy swap their portfolios for state-level positions, top Congress leaders told ET.
The reshuffle could see changes in a number of ministries, including petroleum, external affairs, power, roads and highways, and information and broadcasting, the party leaders said.They, however, said no final decision had been made and sought anonymity because of the sensitivity of the matter.
The likely changes are aimed at strengthening Congress' prospects in the upcoming state elections and the 2014 general elections. The reshuffle could see health minister Ghulam Nabi Azad being switched to petroleum in place of Reddy. There is intense speculation that Reddy could take over as chief minister of Andhra Pradesh, but this could not be independently confirmed by ET.
Azad's name is also being considered for the power portfolio, which is under the temporary charge of Veerappa Moily, the corporate affairs minister, the persons quoted earlier said.
External affairs minister SM Krishna could be asked to head the party in Karnataka, which goes to polls in May next year. Commerce and industry minister Anand Sharma is in the running to succeed him, the Congress politicians quoted earlier said.
Ambika Soni and CP Joshi could also be moved out of the I&B and roads ministries, respectively. While Soni is expected to remain in the government, Joshi could move back to the party given that elections are due in Rajasthan late next year. Rural development minister Jairam Ramesh is also believed to be a contender for the power portfolio, but opposition from industry could dampen his chances.
September last window for reforms
"The prime minister is also not very keen to have Ramesh in charge of power given the obstructionist image he carries from his environment ministry days," a senior cabinet minister told ET on the condition of anonymity. The person also pointed out that in the past, Ramesh has "overturned" decisions taken by the prime minister, such as clearance to the Navi Mumbai airport.
Further, the Prime Minister Office's had to intervene on several occasions after Ramesh declined to clear power and mining projects, the minister said. However, the person also said Ramesh enjoyed the confidence of the Congress leadership.