He also announced a waiver of loans availed by farmers.
Replying to a debate in the Telangana Assembly here on the motion of thanks to the Governor's address, he strongly justified the move and said a commission headed by a retired or sitting judge would be appointed to study the issue of reservation quotas.
More From This Section
He said that these reservations are "100 per cent possible" and the government had decided on it after studying its pros and cons.
Rao said that Tamil Nadu provides the highest reservations at 69 per cent, which exceeds the 50 per cent stipulated by the Constitution, followed by Karnataka.
Noting that Telangana is a "state of weaker sections," he pointed out that backward castes, scheduled castes, scheduled tribes, minorities and weaker sections constitute 85 per cent of the newly formed state's population.
"When it (reservations) has been implemented in Tamil Nadu, why could it not be possible in Telangana," the Chief Minister asked, adding, that the Telangana government would pursue the matter once it gets the commission's report.
He expressed confidence about implementing the measure with the co-operation of all stakeholders.
He also announced waiver of crop loans up to Rs 1 lakh to each farmer, saying that it would also include those availed by them for agricultural purpose, after pledging gold.