The Chief Minister's Office of Telangana announced on 25 June 2026 that Chief Minister Revanth Reddy launched an insurance protection programme for state government employees at Ravindra Bharati, Hyderabad, with the state government signing memoranda of understanding with 16 banks to provide insurance coverage to employees and their families.

Context

Speaking at the event, CM Revanth Reddy declared that it is the government's responsibility to instil confidence, trust, and security among employees — even without being asked. He stated: 'Singareni, power, RTC — whatever the institution, the government is the employer for all. The responsibility to provide security to employees and their family members, even without them asking, rests with the government.'

The Chief Minister cited the precedent set at Singareni Collieries, where Deputy Chief Minister Bhatti Vikramarka had proposed a Rs 1 crore insurance cover for Singareni workers without the workers contributing a single rupee. Revanth Reddy said he had initially doubted the feasibility but acknowledged it was successfully implemented.

Policy Backdrop

The insurance scheme extends the zero-premium, employer-funded model piloted at Singareni Collieries Company — a major public-sector coal mining enterprise in Telangana — to the broader state government workforce covering departments, power utilities, and the Road Transport Corporation. The MoUs were signed in the presence of the Chief Minister with representatives of 16 banks that transact with the state government.

The CM also used the occasion to outline the fiscal challenges inherited by the current administration. He alleged that the previous government had accumulated Rs 8.11 lakh crore in debt over ten years, leaving the state unable to pay salaries on the first of the month. He said the present government had committed to paying salaries on the first of every month and had cleared retirement benefits ranging from Rs 200 crore to Rs 700 crore per month. The government also committed to paying Rs 6,000 crore in retirement benefits within 100 days, with a first instalment of Rs 1,000 crore already released.

Stakeholders and Impact

The programme directly benefits state government employees across departments and public sector units, including Singareni workers, power sector staff, and RTC employees. The CM emphasised that when a worker dies in an unexpected accident, a Rs 1 crore payout from the employing institution enables the bereaved family to stand with dignity in society.

Deputy CM Bhatti Vikramarka, ministers Ponnam Prabhakar, Ponguleti Srinivas Reddy, Vivek Venkataswamy, Adluri Laxman Kumar, and Azhar, Chief Secretary K. Ramakrishna Rao, DGP CV Anand, bank representatives, employee union leaders, and senior officials attended the event. The government also highlighted that 70,000 jobs had been filled since it assumed office, adding to the fiscal load but fulfilling commitments to employees.

What's Next

The CM called on employees to work one additional hour per day and help curb tax evasion to grow state revenue, pledging that the additional income would be directed toward employee welfare. He set an ambitious target of making Telangana a one-trillion-dollar economy by 2034, citing ongoing projects such as the Musi River rejuvenation, Metro expansion, Regional Ring Road, Bharat Future City, caste census, and SC sub-classification as pillars of that vision.

The government also reaffirmed its commitment on the Pay Revision Commission (PRC), stating that its word would be honoured. The phased release of retirement benefit funds and actual implementation of the bank MoUs — including claim settlement mechanisms — will be closely watched as the real test of the scheme's reach and effectiveness.