Kailashnathan, who retired from the same post yesterday, will have a tenure of two years, an official statement said.
The 1979 batch IAS officer is said to be close to Chief Minister Narendra Modi and has vast administrative and corporate experience spanning three decades.
"He took charge as CPS today", the statement said.
During his earlier assignments, Kailashnathan was closely associated with industrial development and privatisation of ports in Gujarat, official sources said.