The Telangana Cabinet, chaired by Chief Minister A. Revanth Reddy has approved a landmark accident insurance scheme and a comprehensive cashless health programme for government employees and pensioners, significantly strengthening social security and healthcare access for lakhs of beneficiaries across the state.
The decision was taken at a Cabinet meeting held on Monday, which lasted more than five hours. Ministers Ponguleti Srinivasa Reddy, Adluri Laxman Kumar, and Vakiti Srihari briefed the media on the key welfare measures approved during the meeting.
In a first-of-its-kind initiative, the Cabinet cleared an Accident Insurance Scheme covering all serving government employees and pensioners without requiring any premium payment from beneficiaries. Under the scheme, Rs 1.20 crore will be paid as compensation in the event of accidental death. Additionally, term insurance coverage of Rs 10 lakh will be provided in case of natural death up to the age of 60.
The scheme will benefit 5.19 lakh regular government employees and 2.38 lakh pensioners, covering a total of 7.57 lakh people. The government said the scheme will be implemented through bankers without placing any additional financial burden on employees or the state exchequer.
The Cabinet also approved the implementation of a long-pending Cashless Employee Health Scheme (EHS), which will provide cashless treatment to employees, pensioners, and their dependent family members. The scheme will cover 3.56 lakh employees, 2.88 lakh pensioners, and their families, benefiting a total of 17.07 lakh people.
Under the scheme, beneficiaries will receive cashless treatment at all government hospitals and 652 empanelled private hospitals, covering 1,998 medical procedures. Each employee will be issued a digital health card to access services.
The health scheme will be implemented through the Rajiv Aarogyasri Health Care Trust. Employees will contribute 1.5 per cent of their basic pay, with the state government contributing an equal share. The total annual outlay is estimated at Rs 1,056 crore, with Rs 528 crore each from employees and the government.
In addition to insurance and healthcare benefits, the Cabinet approved the conversion of the Telangana Vaidya Vidhana Parishad into a Directorate of Secondary Health Care to improve administration, streamline fund allocation, and ensure faster procurement of medicines and equipment.
Officials said the decisions reflect the government’s commitment to strengthening employee welfare and ensuring financial protection and accessible healthcare for government staff and pensioners across Telangana.
In a major urban mobility decision, the Cabinet approved the takeover of the 69-km Hyderabad Metro Phase I from Larsen & Toubro.
The state government may pay approximately Rs 15,000 crore, including outstanding debt, to acquire the project. The asset valuation is estimated between Rs 19,000 crore and Rs 22,000 crore.
The move assumes significance as the Union government has indicated that Phase II expansion would require the entire metro network to be under a single entity. The state has already submitted proposals for 162.5 km of expansion under Phase II A and Phase II B.
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