The government-Dravida Munnetra Kazhagam standoff over allotment of portfolios seemed resolved on Tuesday afternoon after all of the DMK's demands were met.

DMK minister and its chief negotiator in Delhi, Dayanidhi Maran, told reporters after a meeting with Prime Minister Dr Manmohan Singh that a communication has been sent to President A P J Abdul Kalam about the reallocated portfolios.

DMK's T R Baalu will now be in charge of the surface transport ministry. His responsibilities will include roads, highways and shipping. T Palanimanickam will be a minister of state for finance. He will head the revenue department.

Maran said that the crisis over the portfolios was resolved with the timely intervention of Congress president
Sonia Gandhi.

Earlier in the day, Telengana Rashtriya Samithi chief K Chandrasekhar Rao met the prime minister and offered to relinquish the shipping ministry.

All seven DMK ministers had refused to take charge on Monday in protest against the denial of ministries promised to the party.

In an attempt to thrash out a solution, the prime minister spoke to DMK chief M Karunanidhi over the phone and Maran had two rounds of discussions with Congress president Sonia Gandhi.