There seems to be very little information available in the public domain. Any information that you can share will be of help

Thank you Bikash. This gives me an idea about the benefit. Would you have an idea about the ranking (range) required for admission into medical colleges in Bangalore if one has this reservation?

Hyderabad Karnataka reservation 371j states that 8% of total seats in all the state wide educational institutes will be reserved for locals belonging to Hyderabad Karnataka region subject to the fact that the candidate meets the minimum academic eligibility criteria and have secured the minimum cut off marks in the qualifying examination in order to be considered for the admission process.
So this might help a candidate belonging to this region in securing an admit to one of the state wide educational institutes.
For more clarity you can refer to the below link:

https://www.karnataka.gov.in/English/Documents/article371j/12.pdf