AIADMK general secretary J Jayalalithaa will be sworn in as chief minister for the third time on Monday.
She called on Tamil Nadu governor Surjit Singh Barnala on Sunday and staked claim to form the new government shortly after she was elected leader of the AIADMK legislature party in the morning.
Coming out of Raj Bhavan after meeting the governor, Jayalalithaa described the steep hike in petrol as "unfortunate" and reiterated that her priority would be put the economy back on rails, bring down the prices of essential commodities and improve the power situation.
Tamil Nadu has to be brought back on the path of prosperity and growth, she told press persons in a brief interaction at the Raj Bhavan entrance.
Even before all this, her job would be to restore the rule of law and restore the confidence of the people in the government, she said.
A 33-member team will be sworn in, with Jayalalithaa retaining the home ministry. O Paneerselvam, who was CM for a brief while in 2001-02, will have the finance portfolio.
Earlier Jayalalithaa was chief minister from 1991 to 1996 and from 2001 to 2006. Both in 1991 and 2001 her party was in alliance with the Congress.
Earlier in the morning, a unanimous resolution electing Jayalalithaa as the leader was passed by the AIADMK MLAs and a copy of the resolution was presented to her.
Party sources said the swearing in would take place at the centenary hall of Madras University.