The TRS government illuminated government offices and lined up celebrations in Hyderabad and the remaining nine districts of the state on the occasion.
Chief minister K Chandrasekar Rao unfurled the national flag and inspected a guard of honour from police and distributed awards to distinguished personalities.
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"Not just achieving self-sufficiency in power sector, but the state government has already gathered investment of Rs 91,000 crore towards making Telangana a power surplus state in India that can supply power to others," he said.
Rao announced that notification for filling 25,000 vacancies in various government departments would be issued next month.
All the contract employees in the state would be regularised and the process is underway, he said.
Noting that the construction of two bedroom houses, an election promise of TRS, could not be taken up last year due to various programmes, he said 50,000 houses would be built at a cost of Rs 2,500 crore with each unit costing Rs 5.04 lakh during this year.
The state government is implementing a number of welfare schemes like social security pensions, Kalyana Lakshmi, Shadi Mubarak for the benefit of deprived sections, he said.
Meanwhile, main opposition Congress celebrated the day as 'Soniamma Kruthagnatha Dinotsavam' (thanksgiving day to Sonia Gandhi), saying that the separate state became a reality because of her.
The formation day was also celebrated in the offices of opposition BJP, TDP and Left parties.
Union minister Bandaru Dattatreya, who attended the event at the BJP office here, conveyed greetings to the people on behalf of the Centre.
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