Telangana Cabinet to Take Stock of Key Issues Today

Hyderabad:The state Cabinet will meet at the Secretariat on Thursday under the chairmanship of Chief Minister A. Revanth Reddy to deliberate on several crucial issues, including the Hyderabad Metro Rail takeover, Musi River rejuvenation, the proposed Future City project, 42 per cent BC reservations in local bodies, irrigation projects, and disbursal of Rythu Bharosa assistance for the rabi season. The meeting assumes significance as it coincides with an anticipated Supreme Court hearing on the state government’s Special Leave Petition (SLP) challenging the Telangana High Court’s stay on Government Order (GO) 9, which granted 42 per cent reservations for Backward Classes in local body elections. The High Court’s interim order has stalled the conduct of the local elections, prompting the government to seek relief from the apex court. The outcome of the hearing is expected to influence the Cabinet’s deliberations on the government’s future course of action regarding local polls and social justice measures. The proposed takeover of the Hyderabad Metro Rail project from Larsen & Toubro (L&T) will also be a key item on agenda. On September 25, the state government announced its decision to assume control of the Metro’s first phase through a one-time settlement. Under this arrangement, the government will pay Rs 2,000 crore for L&T’s equity and take over its Rs 13,000 crore debt. The move aims to resolve operational challenges and pave the way for the expansion of Metro Phase-II. However, finance department officials have cautioned that assuming the Rs 13,000 crore debt would impose a significant financial burden on the state exchequer, as L&T had availed high-interest loans. In 2024–25 alone, the company reportedly spent Rs 940 crore on interest payments. The government is expected to require nearly Rs 1,000 crore annually to service these loans. To mitigate the burden, the Cabinet is likely to examine options for restructuring or swapping the high-cost loans with those from international funding agencies such as the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), which offer loans at lower interest rates. The Cabinet will also review progress on the Musi River rejuvenation and the ambitious Future City project, aimed at promoting urban renewal and sustainable development around Hyderabad. Other issues expected to come up include irrigation project estimates and proposed works at the Medigadda barrage, Tummidihatti, Sammakka-Saralamma reservoir, and the sixth package of the Devadula project. Another important item on the agenda is the Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025. The proposed legislation seeks to register gig and platform workers, establish a welfare fund, and extend accident and health insurance coverage. An online database of all gig workers in the State will also be created to ensure transparency and efficient welfare delivery. The Cabinet is also expected to approve the release of Rythu Bharosa assistance of Rs 6,000 per acre for the rabi season. During the kharif season, the government had credited `9,000 crore to about 70 lakh farmers within nine days in June.