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Dhami began his second term with a ceremony at which eight other members of his new cabinet were also sworn in.
As Modi appeared on the stage wearing the black cap with the Uttarakhand’s state flower Brahma Kamal embossed on it, he was greeted with loud cheers by the audience.
Modi had worn the cap to many of his poll rallies during the campaigning for the state assembly polls.
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Former assembly speaker Premchand Aggarwal who made his debut as a minister on Wednesday stood out as he took his oath in Sanskrit.