Telangana cabinet on Monday has approved the takeover of Hyderabad Metro Rail project from Larsen and Toubro (L&T) by March 31 along with the extension of Rs 1.2 crore insurance cover for all government employees.

The decisions are significant as they come just ahead of the Budget Session of the Assembly on March 16.

Revenue Minister Ponguleti Srinivas Reddy told reporters that modalities of the takeover will be discussed during the Budget Session. The state has decided to expedite phase-2 expansion of the metro rail project.

The state government will pay about Rs 15,000 crore to L&T, including debt and liabilities, to takeover phase-1. The current value of metro assets is estimated to be at Rs 19,000 crore and Rs 22,000 crore, suggesting that it has been acquired at a 22% discount.

Manjeera water supply modernisation:

In other key decisions, the government has approved the modernisation of Manjeera Water Supply scheme phase-1 and phase-2 at a cost of Rs 722 crore. A new pipeline from Osman Sagar will be laid at a cost of Rs 282 crore to reduce water wastage.

The state government will allot 153 acres in Kapra mandal to defence authorities as compensation for land used for elevated corridors. The govt allocated 70 acres of land for an engineering college under JNTU in Gummadur, Mahabubabad. Another 36 acres has been allotted for an engineering college under Satavahana University in Ummapur.