The southern Tamil regional Dravida Munnetra Kazhagham (DMK), which controls 16 parliamentary seats, had sought the newly-created shipping ministry but Singh allotted it to another southern partner, the TRS party, when he announced his cabinet two days ago.

But K. Chandrasekhar Rao, chief of the TRS party, which has five seats in the parliament, said Tuesday he had decided to give up the portfolio to the DMK.

"For the sake of stability of this government, I asked the prime minister to re-allocate this portfolio. I am not after power or position," Rao said.

The shipping, road transport and highways portfolios have been merged into a single entity, named the shipping ministry.

The DMK, which pressed for three ministerial berths, had said earlier its seven ministers would take up their duties only after the portfolio issue was sorted out.

According to media reports, the DMK also wanted a post in the revenue department and had been pushing Singh to hand it the internal security ministry, against the wishes of the prime minister's Congress party.

"All issues have been resolved by the timely intervention of (Congress leader) Sonia Gandhi," said DMK leader Dayanidhi Maran, the new minister for communication and technology.

"Prime Minister Manmohan Singh will be sending a letter to the president and T.R. Baalu (DMK) will be given the additional portfolio of shipping," he added.

"All portfolios committed to us have been allocated to us."