Stalin shifts PTR out of Finance ministry in cabinet reshuffle, Thennarasu replaces him

P T R Palanivel Thiaga Rajan has been relieved of Finance portfolio

Tamil Nadu Chief Minister M K Stalin on Thursday effected a reshuffle in the Council of Ministers by shifting P T R Palanivel Thiaga Rajan from the high-profile Finance portfolio to Information Technology, two weeks after the latter’s purported audio clips caused embarrassment to the government, and inducting T R B Rajaa into the cabinet.

Thangam Thennarasu, considered one of the top performers of the DMK dispensation, succeeds Thiaga Rajan as the Minister for Finance and Human Resources Management, moving from Industries portfolio. Known for his affable nature, Thennarasu will continue to hold charge of archaeology, his pet subject.

Thennarasu’s track record as a fine administrator displayed in his work in the School Education department in the 2006-2011 DMK rule and in Industries portfolio for the past two years made him the obvious choice for handling the crucial Finance portfolio.

The biggest surprise was Rajaa, son of DMK veteran T R Baalu, being allotted the coveted Industries portfolio, one of the most happening departments with investments pouring in from various countries. He was inducted into the Cabinet and administered the oath of office and secrecy on Thursday by Governor R N Ravi at a simple event in Raj Bhavan.

Read | Tamil Nadu CM Stalin inducts T R Baalu’s son T R B Rajaa into Cabinet

T Mano Thangaraj, who was handling IT, was sent to the Milk and Dairy Development Department replacing S M Nasar who was dropped on May 9, while Information Minister M P Saminathan got Tamil Official Language and Tamil Culture hitherto held by Thennarasu. Speaking at an event, Stalin said the portfolio changes were made for “administrative reasons.”

Change in Thiaga Rajan’s portfolio is significant after two purported audio clips allegedly containing his voice went viral on social media. In the clips, the person, claimed to be Thiaga Rajan, is heard talking about the DMK, Udhayanidhi, and Stalin’s son-in-law Sabareesan, and how they are controlling the party-led government.

The person in the audio was also heard saying that the “current model” of Udhayanidhi and Sabareesan managing the party affairs was not sustainable for a long time. Thiaga Rajan was shifted from Finance after he dismissed the audio clips as “fabricated” and even Stalin appeared to accept his explanation.

For many months now, senior ministers were gunning for Thiaga Rajan due to his prudent handling of the state’s finances and had even complained to Stalin. But the audio clips, which were released by whistleblower ‘Savukku’ Shankar and TN BJP chief K Annamalai in April, came as a setback to Thiaga Rajan, which is believed to have led to the portfolio change.

A top banker before he quit his high-paying job to jump into electoral politics, Thiaga Rajan was allotted the Finance portfolio in May 2021 and was one of the best performers in the Stalin cabinet. During his two-year tenure as Finance Minister, Thiaga Rajan is credited with reducing the state's fiscal deficit by Rs 30,000 crore and inculcating a more stringent fiscal discipline in administration.

Known for his outspoken nature, Thiaga Rajan’s perceived opposition to re-introduction of the Old Pension Scheme (OPS) and to several demands of state government employees and refusing to fill up vacancies earned him the wrath of several sections. One of his key achievements was putting together an Economic Advisory Council to the CM consisting of big names like Esther Duflo and Raghuram Rajan for advising the state government on several key initiatives.

Also, the darling of the English media, PTR’s sharp interviews attacking BJP and Prime Minister Narendra Modi on economy and other related issues made him popular among the people.

Accepting the portfolio change, PTR said the past two years have been the most fulfilling in his life as the state government invested in a record number of social welfare schemes as well as record capital spending, all while delivering record-setting fiscal improvements, despite inheriting record deficits and debt ratios.

“I am grateful that CM @mkstalin has now assigned me the portfolio of Information Technology – globally the #1 industry for investment and job-creation today. We know that technology shapes the future,” he said.

Thiaga Rajan said though Tamil Nadu was a pioneer in this field during M Karunanidhi’s 1996-2001 term, the state “unfortunately lagged” its true potential in this sector in the last decade and vowed to build on the efforts of his predecessor to attract more investments, accelerate job-creation, and deliver growth to re-establish TN as a leading state in IT.

“I hope my own experience in establishing and managing a pioneering Global Capability Centre 15 years ago, and the connectivity with the IT & ITES Industry gained during my professional career, will enrich my efforts in this new role,” the minister added.