Piyush will now hold the Finance, Railways and Coal portfolios simultaneously till Jaitley recuperates.
As part of a broader cabinet reshuffle, Rajyavardhan Singh Rathore also replaced Smriti Irani as minister of broadcasting and information. Rajyavardhan Singh Rathore, who was the Minister of State (MoS) for I&B Ministry, has been assigned independent charge.
Ms Irani was given the vital Information and Broadcasting portfolio as an additional charge last July, when Venkaiah Naidu resigned after emerging as the NDA's pick for the post of the Vice-President.
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Irani has been in the thick of a series of controversies ever since she was inducted into the Modi cabinet in November, 2014.
Jaitley had been unwell since early April, with kidney-related problems and chest infection.
As per the "guidelines to regulate fake news", the Information and Broadcasting Ministry had said that a journalist's accreditation could be permanently cancelled if the scribe is found generating or propagating fake news.
It is considered natural to take ministry from Jaitley, but it is considered as a major decision to withdraw Ministry of I&B from Smriti Irani. Sources familiar with the decision-making process said there were already two MoS and a full-time minister in Uma Bharati at the relatively small drinking water and sanitation ministry. Now she will hold only Textile ministry. Rumors that she'd be shunted out had started back then, because Modi, entering the final year of his government, can't afford to deal controversies in a portfolio as key as I&B. The biggest change was in the Defence Ministry, with Nirmala Sitharaman becoming the country's first Defence Minister. In his new role as finance minister, Goyal will join the, an important club which consists of the Prime Minister and the ministers of home, external affairs and defence.