The Telangana State Cabinet, chaired by Chief Minister Revanth Reddy, has approved a wide range of policy decisions aimed at strengthening employee welfare, expanding healthcare access, accelerating infrastructure development, and promoting urban and renewable energy growth. The decisions, taken during a Cabinet meeting on Monday, are expected to benefit lakhs of government employees, pensioners, and citizens across the state while advancing several large public projects.
One of the key measures announced is the introduction of an accident insurance scheme providing coverage of Rs 1.2 crore for government employees in cases of accidental death. The scheme will cover approximately 5.19 lakh serving employees and 2.38 lakh pensioners, bringing the total number of beneficiaries to about 7.57 lakh. Additionally, employees up to the age of 60 will be eligible for Rs 10 lakh term insurance in cases of natural death. The government stated that the insurance programme will be implemented through banking institutions and will not impose any financial burden either on employees or on the state treasury, drawing confidence from similar models already functioning in Singareni and TGTRANSCO.
The Cabinet also approved a long-awaited cashless Employee Health Scheme (EHS), which is expected to benefit nearly 17.07 lakh individuals, including employees, pensioners, and their dependent family members. Under the scheme, beneficiaries will be able to access free treatment at government hospitals and 652 empanelled private hospitals across the state, covering 1,998 medical procedures. The financial model involves shared contributions, with employees contributing 1.5% of their basic pay—estimated at Rs 528 crore annually—matched equally by the government, creating a total yearly allocation of Rs 1,056 crore. Implementation will be overseen by the Rajiv Arogyasri Healthcare Trust.
As part of healthcare reforms, the Cabinet approved the conversion of the Telangana Vaidya Vidhana Parishad into the Directorate of Secondary Health Care, granting it full departmental status. The move is intended to accelerate fund releases, streamline procurement of medicines and equipment, and ensure timely salary payments to healthcare personnel. A special committee led by Health Minister Damodar Raja Narasimha, along with advisors Dr Nori Dattatreya and Dr Srinath Reddy, will guide further improvements in secondary healthcare services.
On the infrastructure front, the Cabinet cleared the state’s acquisition of the 69-kilometre Phase I Hyderabad Metro Rail network from Larsen & Toubro. The takeover is estimated to cost around Rs 15,000 crore, including debt liabilities, while the asset value is assessed between Rs 19,000 crore and Rs 22,000 crore, which the government views as a financially advantageous purchase. Plans are also underway to accelerate Metro Phase II expansion, with proposals exceeding 160 kilometres already submitted to the central government.
Urban infrastructure development will be strengthened through Phase II of the Comprehensive Road Maintenance Programme, which will upgrade 300 kilometres of roads in Greater Hyderabad at a cost of Rs 3,145 crore. The Cabinet also approved major water supply upgrades, including Rs 722 crore for modernisation of the Manjira Water Supply Scheme and Rs 282 crore for improvements to the Osman Sagar drinking water pipeline, projects expected to reduce transmission losses by about 30 percent.
Additional urban development initiatives include expanding the jurisdiction of the Hyderabad Metropolitan Development Authority to four more villages and allocating land for logistics parks, food processing units, markets, educational institutions, religious facilities, and a mini stadium in Bhadrachalam. In the renewable energy sector, distribution licences were approved for data centres utilising 300 MW under Telangana’s Clean and Green Energy Policy.
The Cabinet also reviewed preparations for Census 2027, with the first phase scheduled between May 11 and June 9 and expected to involve approximately 89,000 personnel.
Overall, the decisions signal a broad policy push focused on employee security, healthcare modernisation, infrastructure expansion, and sustainable urban development, with implementation planned in stages over the coming months.
