Chief Minister N Kiran Kumar Reddy approved the proposal today, which will benefit about eight lakh students residing in 5,515 hostels run by social welfare, BC welfare and minorities welfare departments.
Currently, rice is being supplied at Rs 4 per kg to the hostel inmates.
The State Civil Supplies Corporation will supply 92,570 tonnes of rice to these hostels at Re 1-a-kg per annum, a statement from the Chief Minister's Office said.
The state government would bear an additional subsidy bill of Rs 30 crore due to reduction in price of rice.
The new scheme would be an addition to the recent hike in mess charges for the hostel inmates, the release added.
