Manmohan Singh was on Tuesday re-nominated as Congress Parliamentary Party leader, setting in motion the process of formation of the new government of which he will be sworn in as PM that is likely to take place on Friday.

Seventy six-year-old Dr Singh was named by Congress President Sonia Gandhi as the Congress Parliamentary Party leader and Leader of the Rajya Sabha after she was unanimously elected Chairperson of the CPP.

Dr Singh is expected to stake claim after a meeting of the leaders of the UPA on Wednesday where he is likely to get a formal backing of the ruling alliance to be the next prime minister.

The economist-turned-politician is expected to be sworn in on Friday, a day after the death anniversary of Rajiv Gandhi. He will be creating a history of sorts by becoming the prime minister for a second time after a full term at the helm. Pandit Nehru was the first prime minister to achieve such a feat.

Consultations over the government formation gathered momentum with the arrival of Tamil Nadu Chief Minister M Karunanidhi to hold talks with Gandhi and the Prime Minister.

All UPA leaders, including Trinamool Congress chief Mamata Banerjee, whose party is the second largest with 19 seats, are expected in New Delhi on Wednesday for a meeting with Gandhi and Dr Singh.

Banerjee has already said that her party would not bargain for posts.

With the Congress in the driver's seat with as many as 206 MPs and its dependence on allies reduced considerably, party leaders are talking of not giving more than one infrastructure ministry to any of the partners.

The unexpected support of the BSP and the SP have resulted in the talk that parties like RLD and JD(S) should not be given any ministerial berths. Feelers have been sent to the Ajit Singh-led party to merge with Congress if it wanted ministerial berth, Congress sources said.