Mandal had been made chairman of the Kumaon Mandal Vikas Nigam for promoting tourism in the hill state, officials said.
Mandal had grabbed headlines after he resigned as BJP MLA in May to vacate his Sitarganj assembly seat for Bahuguna to facilitate his entry into the Vidhan Sabha.
Bahuguna trounced BJP's Prakash Pant in the July eight bypoll by a record margin of 40,000 votes.
"The Chief Minister has rewarded Mandal for vacating his seat as he was facing difficuty in getting elected to the state assembly," a Congress leader said.
Bahuguna met Congress President Sonia Gandhi in New Delhi yesterday and discussed various issues related to the hill state.
Besides perks, Mandal would get a red beacon-fitted car, a symbol of ministerial-level post in the hill state.
