The veteran bureaucrat was earlier made OSD in Prime Minister's Office on August 30.
A 1977-batch IAS officer of Uttar Pradesh cadre, Sinha served as Cabinet Secretary from June 13, 2015 to August 30, 2019.
The Appointments Committee of the Cabinet (ACC) approved the appointment of Sinha as Principal Advisor to Prime Minister with effect from September 11, 2019.
His appointment will be co-terminus with the term of the Prime Minister or until further orders, whichever is earlier.
Sinha has held senior positions at the Centre. He served as Secretary in the Ministries of Power and Shipping and Special Secretary in the Ministry of Petroleum and Natural Gas.
He also held various assignments in Uttar Pradesh.
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Sinha pursued economics during graduation from St. Stephens College, Delhi and post-graduation from Delhi School of Economics.
He also obtained the Masters Diploma in Public Administration and an M. Phil in Social Sciences.
His areas of specialisation include energy, infrastructure and finance.
Sinha was appointed OSD in the Prime Minister's Office after Prime Minister Narendra Modi accepted the request of his Principal Secretary Nripendra Misra to be relieved of the post.
The ACC also approved the appointment of PK Mishra, who was Additional Principal Secretary to Prime Minister, as Principal Secretary to Prime Minister with effect from September 11.