The decision was taken at the meeting of the High-Level Committee (HLC), chaired by Home Minister Rajnath Singh, for Central Assistance to the drought-affected Telangana.
The committee examined the proposal based on the report of the central team which visited the drought-affected districts of Telangana.
"The HLC approved the assistance from the National Disaster Relief Fund (NDRF) in respect of Telangana to the tune of Rs 791 crore," a Home Ministry spokesperson said.
A total of 10 states, including Telangana, had in 2015 declared drought in more than 280 districts spread across the country.
Finance Minister Arun Jaitley, Agriculture Minister Radha Mohan Singh, Union Home Secretary Rajiv Mehrishi and senior officers of the ministries of home, finance and agriculture attended the meeting.