Hyderabad Metro takeover to accidental insurance: Check Telangana Cabinet decisions

The Cabinet introduced two flagship schemes aimed at providing total financial and health security to the state's workforce

By Newsmeter Network
Published on : 24 Feb 2026 8:37 AM IST

Hyderabad Metro takeover to accidental insurance: Check Telangana Cabinet decisions

Hyderabad: Telangana Cabinet has decided to take over the Hyderabad Metro Rail from L&T, introduce India's first accidental insurance scheme for employees, and separate medical and administrative services in the health sector.

Chaired by Chief Minister Revanth Reddy, the Cabinet met here on Monday night and took a slew of decisions. Long-pending issues of government employees and government doctors were also discussed in the meeting.

Welfare for Government Employees

The Cabinet introduced two flagship schemes aimed at providing total financial and health security to the state's workforce:

India’s First Free Accident Insurance:

Applicable to 7.57 lakh people, including regular employees, corporation staff, and pensioners.

Coverage: ₹1.2 crore for accidental death and ₹10 lakh term insurance for natural death (up to age 60).

Zero Cost: The scheme will be implemented through bankers with no premium burden on employees or the government.

Cashless Employee Health Scheme (EHS):

A long-awaited initiative covering 17.07 lakh people (employees, pensioners, and dependents).

Network: Includes all government hospitals and 652 private hospitals, covering 1,998 medical treatments.

Funding: A shared contribution model where employees and the government each contribute 1.5% of basic pay (totaling a ₹1,056 crore annual pool).

Digital health cards will be issued for seamless, "rupee-free" treatment.





Takeover of Hyderabad metro from L &T

In a strategic move to accelerate urban mobility, the government has decided to acquire the Metro Rail project:

L&T Exit: The state will take over the entire 69-km Phase 1 from L&T.

The Valuation: While the assets are valued between ₹19,000–₹22,000 crore, the government will acquire the project for ₹15,000 crore (including debt)—a nearly 22% discount.

Expansion Goal: This takeover ensures a single entity manages the network, satisfying Union Government requirements as the proposal is pending for clearance.

The state government has already sent proposals to the Centre for the expansion of Metro Rail by 76.4 km in 5 corridors of Phase -II A and 86.1 km in 3 corridors in Phase -II B.

Healthcare Infrastructure Reforms

TVVP Overhaul: The Telangana Vaidya Vidhana Parishad (TVVP) will be converted into the Directorate of Secondary Health Care (DSH), granting it full government department status to ensure faster funding and timely salaries.

Special Committee: A committee led by Health Minister Damodar Raja Narasimha, featuring experts like Dr. Nori Dattatreya and Dr. Srinath Reddy, will study new policies to separate medical services from administrative management in hospitals.

Infrastructure & Urban Expansion

Roads & Water: Approved ₹3,145 crore for Phase 2 of the Comprehensive Road Maintenance Program (300 km of roads) in Greater Hyderabad Municipal Corporation.

Sanctioned ₹722 crore for Manjira Water Supply modernization and ₹282 crore to fix leaky pipelines at Osman Sagar.

HMDA Expansion: Four new villages (Chittiguda, Yavapur, Tekulapalli, and Enkatala) have been officially included under the Hyderabad Metropolitan Development Authority limits.

Land Allotments & Education

Industrial Hubs: 223 acres in Koheda (Rangareddy) for a multi-modal logistics and food processing park.

Education: Land allotted for a new JNTU Engineering College in Mahbubabad, a Satavahana University college in Siddipet, and 21 Young India Integrated Residential Schools across multiple districts.

The state cabinet has approved the allocation of 153 acres in Kapra mandal to the Defence ministry instead of land, as 42 acres required for the construction of an elevated corridor in Hyderabad were taken from the defense department.

Spiritual Space: 20 acres in Dhamsalapuram for a TTD Sri Venkateswara Swamy temple.

Census 2027 & Housing

National Census: The state is ready for the 2027 Census. Phase 1 (House Listing), where 89,000 enumerators will take the listing.

The pattern of 34 questions prescribed by the Centre for House Listing was also discussed in the cabinet meeting.

Indiramma Houses: A special drive will be launched to construct affordable housing, with the state seeking matching funds from the Central Government.

Green Energy: Data centers consuming 300 MW will now be eligible for Renewable Energy Distribution Licenses.

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