MUMBAI, June 21: In A major reshuffle, chief minister Manohar Joshi has divested Eknath Khadse (BJP) of the finance portfolio and given him charge of irrigation and command area development agency.

Mantralya sources told The Financial Express that Khadse has been replaced by irrigation minister Mahadev Shivankar (BJP) who was given a clean chit by the Puranik Committee appointed to probe charges made by anti-corruption crusader Anna Hazare.

The much-awaited reshuffle has come in the wake of recent directives from Shiv Sena chief Bal Thackeray at a meeting convened on June 15 to assess the functioning of the Sena ministers.

Interestingly, Khadase had left for a 20-day tour of the US and Europe on June 20 to attend the Jagtik Marathi Parishad (World Marathi Conference).

Khadse is best remembered for his decision to hike excise duty on Indian-made foreign liquor (IMFL) by 200 per cent. Despite protests from the liquor industry, he refused to backtrack and remained adamant on his decision which, according to him, would translate as additional revenue of Rs 300 crore.

Khadse, who had presented the 1996-97 and 1997-98 budgets, was instrumental in the simplification of the sales tax structure.

During his tenure, he slashed the stamp duty on company mergers, which came as a shot in the arm for the Hindustan Lever-Brooke Bond merger. HLL paid a mere Rs 23 crore as stamp duty.

Trade and commerce minister Suresh Jain has been given housing and slums improvement, replacing present incumbent Chandrakant Khaire who is now in charge of transport. Pramod Navalkar who held the transport and cultural affairs' portfolio will be the new trade and commerce minister. He would hold additional charge of the cultural affairs ministry.

Jain was made trade and commerce minister on June 10, 1996. However, he had complained to Sena chief Bal Thackeray and Joshi about being "toothless." Jain had offered to quit the ministry and devote himself to party work.

Controversial food and civil supplies minister Shobhatai Phadanvis (BJP), who was allegedly involved in the multi crore "dal ghotala", has been shifted to the employment guarantee scheme department held by Haribhau Bagde (BJP). Bagde has been allotted food and civil supplies.

Prakash Mehta (BJP), minister for special assistance and tourism, will be new minister for excise, a portfolio previosly held by Jagannath Patil (BJP) who will now hold Mehta's departments.

Observers said that through today's reshuffle Joshi has checkmated the BJP. Interestingly, despite complaints about being "inefficient," industries minister Leeladhar Dake (Sena) has been allowed to continue with his post.

Moreover, environment and forests minister Ganesh Naik, whose style of functioning has come under attack from Thackeray, has not been touched. On June 18, Joshi ordered a complete ban on quarrying in Navi Mumbai, the constituency represented by Naik following a diktat from Thackeray.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.