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Khandu was administered the oath of office and secrecy by Governor Brig (Retd) B D Mishra at the Dorjee Khandu Convention Centre here.
Eleven Cabinet Ministers, including Chowna Mein, were also administered the oath.
Chief Ministers of Assam, Nagaland, Manipur, Tripura and Meghalaya attended the function.
The BJP led by Khandu won 41 seats in the 60-member Assembly, in the elections held simultaneously with the Lok Sabha elections on April 11 in the northeastern state bordering China.