The Telangana government had celebrated Rao's birth anniversary last year too, soon after formation of the new state.
Rao was born in Karimnagar district, which is now in Telangana, on June 28, 1921.
The official function was held at 'P V Gyan Bhoomi' on the banks of Hussain Sagar Lake wherein several Telangana ministers, Congress leaders and Rao's family members offered floral tributes at his Samadhi.
Telangana Deputy Chief Ministers Kadiyam Srihari and Mohammed Mahmood Ali, state Home Minister N Narasimha Reddy, ministers Harish Rao, T Nageswara Rao and Mahender Reddy were among those who attended.
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Rao, in his long political career, had been the Congress president too.
AICC general secretary Digvijay Singh, in-charge of Congress affairs in Telangana and AP, paid homage to the former Prime Minister.
In his address Singh said "P V Narasimha Rao was an intellectual political leader who had the wide experience in politics and social service and governance,".
"He (Rao) was a man of high intellect, a man of very high degree of political, idealogical commitment," he said.
Rao's tenure (as PM) initiated the process of economic liberalisation in the country. When he took over the economy was in doldrums and P V Narasimha Rao and Manmohan Singh (then Finance Minister) brought Indian economy on track," Singh added.