"On the advice of Chief Minister, the Governor ESL Narasimhan has consented to drop Dr T Rajaiah from the Council of Ministers for Medical and Health with immediate effect," a state government release said here.
The dropping of Rajaiah came against the backdrop of media reports over the last few days about alleged corruption and others in his office.
Meanwhile, K Srihari, who is presently a Member of Parliament, was inducted into the Cabinet and a formal event was held at the Raj Bhavan for the purpose.
The other deputy chief minister is Mohammed Mahmood Ali.
In a minor change of portfolios in the Cabinet, C Laxma Reddy has been given Medical and Health and G Jagadish Reddy has got Energy.
Separate Government Orders (GOs) were issued on the changes in the Council of Ministers.
Talking to reporters, Srihari said he would work as a "soldier for the reconstruction of Telangana".
"I am happy to have got this opportunity. I will work as a soldier in the reconstruction of Telangana as per the orders and advice of (Chief Minster) KCR," he said.
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