79-year-old Sayeed was administered oath of office and secrecy by Governor N N Vohra at Zorawar Stadium where the ceremony was attended by Prime Minister Narendra Modi and senior BJP leaders -- L K Advani, Murli Manohar Joshi, party President Amit Shah and General Secretary Ram Madhav.
The swearing-in was boycotted by National Conference.
The alliance, which has been termed by Sayeed as meeting of "North Pole and South Pole", saw senior BJP leader Nirmal Singh being sworn-in as a Minister, a historic day for the saffron party in the state as it became part of the government for the first time. He will be the Deputy Chief Minister of the PDP-BJP alliance government.
It also marks Sayeed's return to the top post after nearly a decade since having led a PDP-Congress coalition government for three years from January 2002.
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Among others who took oath as Ministers were Abdul Rehman Veeri, Haseeb Drabu, Naeem Akhtar, Basharat Bukhari (all PDP), Lal Singh, Chander Prakash, Sukhnandan Chowdhury and Bali Bhagat (BJP). Priya Sethi (BJP) and Aasiya Naqqash (PDP) were the two women legislators taking oath as Ministers.
The cabinet saw entry of separatist turned politician Sajjad Gani Lone being sworn-in as the cabinet minister from the BJP quota.
After the swearing-in, he received a tight-hug from the Prime Minister.
PDP legislator Haseeb Drabu, who was the chief negotiator from the party in formulating a Common Minimum Programme (CMP), was welcomed by the Prime Minister with all hugs and smiles for making the alliance possible.