He made the announcement after visiting parts of the worst-affected port city and a review meeting with Chief Minister N. Chandrababu Naidu and top officials.
Modi, who made an aerial survey of the affected areas of both north coastal Andhra and Odisha, also declared Rs.2 lakh from Prime Minister’s Relief Fund for families of each of those killed and Rs.50,000 to every injured.
He said the cyclone caused huge losses at a time when he was planning to develop Visakhapatnam into a smart city. He, however, exuded confidence that the central and state government will work together to overcome the challenge.
Naidu had earlier sought Rs.2,000 crore as interim assistance and also wanted Modi to declare it a national calamity.