The cabinet, presided over by Chief Minister Virbhadra Singh, decided to set up AIIMS in Bilaspur as it was located in the proximity of five districts -- Solan, Mandi, Hamirpur, Una and Shimla, an official statement said.

It also decided to bring the PTA (grant-in-aid) teachers on contract after completion of seven years of continuous service. Earlier, it was eight years.

Official sources said this decision would benefit over 6,318 teachers recruited through parent and teachers association in schools and colleges.

Last year, the government decided to take back all the PTA teachers who were removed from service by the previous BJP government.

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