Atanu Chakraborty (in photo) will replace Subhash Chandra Garg, who will become power secretary.

Highlights Atanu Chakraborty will replace SC Garg, who will become power secretary

He will oversee launch of India's first sovereign overseas bond this year

Mr Garg had opposed move to transfer a smaller amount from RBI to centre

The government has appointed Atanu Chakraborty as the new economic affairs secretary, a coveted position in the finance ministry, a statement late on Wednesday said.

Mr Chakraborty will replace Subhash Chandra Garg, who will become power secretary.

The secretaries are the top bureaucrats and are placed next to ministers in hierarchy.

Mr Chakraborty is now the divestment department secretary and was overseeing a series of privatisation efforts of the government, including the sale of Air India.

One of Mr Chakraborty's biggest challenges in his new post will be to launch the country's first sovereign overseas bond this year, expected to worth about $10 billion. The move has been criticised by some prominent economists.

Subhash Chandra Garg was on the six-member panel deciding on the transfer of "excess reserves" from the Reserve Bank of India, or central bank. Sources said Mr Garg had opposed the panel's move to transfer a smaller amount to central government.