The Andhra Pradesh Chief Minister N Kiran Kumar Reddy successfully pacified the ministers who were unhappy with their portfolios. Only V Vasanth Kumar was adamant about his resignation of his ministry.
The first Cabinet meeting was held yeasterday and the discontented ministers were assured by party seniors and the Chief Minister that their grievances would be resolved and that a few changes in allocation of business among ministers would be done in due course of time.
The cabinet also won over the state government employees by approving the hike in their Dearness Allowance to 8.56 per cent. The hiked DA from July to November would be adjusted with the General Provident Fund, and would be paid out in cash along with the December salary. The government would incur an additional expenditure of Rs 1,488 crore annually due to the hiked DA.