New Delhi (Agencies): Two years into her third term, Delhi Chief Minister Sheila Dikshit on Wednesday reshuffled her Cabinet by dropping a Minister, inducting a loyalist and changing portfolios of almost all Ministers including senior leader A K Walia who has been moved to Health from the plump Finance Ministry.

While Social Welfare Minister Mangat Ram Singhal was axed, Ramakant Goswami, a three-time MLA, was inducted into the Council of Ministers in the revamp, seen as sending a subtle message by Dikshit to her detractors.

The revamp, the first such exercise after Dikshit came to power for the third consecutive term also saw Walia losing the Urban Development and Land and building Departments and Finance being taken over by the Chief Minister.

In redistribution of portfolios, Dikshit allocated Revenue, Health and Flood and Irrigation departments to Walia, who is not known to have best of relations with the Dikshit.

Relieving him of the Finance department is being seen as an effort to reduce his influence.

Harun Yusuf, who was holding Food and Civil Supplies as well as Industries department has been divested of Industries and given two new departments -- Power and Development.

Power department was earlier under the Chief Minister while Raj Kumar Chauhan was in-charge of Development department.

In the revamp, the Chief Minister did not change the portfolios of Arvinder Singh Lovely, who is looking after the Transport and Education departments.

Kiran Walia, who was holding the charge of Health as well as Women and Child Welfare department has retained the latter and has been given the Social Welfare department in the redistribution of portfolios.

Although there was speculation that Chauhan may lose PWD department due to alleged bunglings in the CWG projects, Dikshit did not change the portfolio but he lost Revenue and
Development departments and got Urban Development and Land and Building departments.

Officials said General Administration Department, Home Department, Services and Vigilance Department, Higher Education, Tourism, Art and Culture and Environment departments will continue to remain under Dikshit.

Newly inducted Goswami has been given the responsibility of Industries and Labour departments.
Goswami, a journalist-turned-politician representing Rajinder Nagar constituency in assembly, was earlier administered oath of office by Lt Governor Tejinder Khanna at a function, attended by Dikshit, her ministerial colleagues and top brass of Delhi Government.

Describing the revamp as an exercise to bring fresh thoughts into the Cabinet, Dikshit said the reshuffle has been made with "blessings" from the party high-command.

"The idea is to bring fresh air into the Cabinet with a fresh face. Our commitment to the people and to the work we are doing remains as it is. While carrying out the exercise, care has been taken to ensure continuity," Dikshit told press.

Singhal, who had hit the headlines for wrong reasons many times in the last two years, was removed for his "non-performance" in the reshuffle, sources said.

The reshuffle comes just two months after Dikshit completed two years in office in her third consecutive term as Chief Minister. Dikshit held a series of meetings on Tuesday to finalise the exercise.

Asked whether the reshuffle had anything to do with the allegations of irregularities in the run up to the CWG, Dikshit said it was not in "any way" related.

"It is a kind of mid-term appraisal. It has been done to make our governance more effective," she said.

Queried whether Singhal was shown the door on the ground of non-performance, she evaded a direct reply but indicated that he will be rehabilitated.

"We wanted to infuse new blood. It is a normal process to give opportunity to new people to serve the common man," she said.

Singhal, when asked whether he was unhappy for being axed from the Cabinet, said it was the prerogative of the Chief Minister to choose her cabinet.

"I have accepted the decision as it is up the Chief Minister to decide on her Cabinet. I had discharged my duties with full dedication," said Singhal.

Goswami, asked about his priorities, said he has been given a responsibility by the Chief Minister and he will try his best to justify the decision.