The European Commission's Humanitarian Aid and Civil Protection department (ECHO) allocated the amount after the International Federation of the Red Cross and Red Crescent (IFRC) appealed for funds to carry out relief operations.
More than 10 million people were affected after Phailin hit the coastal areas of Odisha and Andhra Pradesh resulting in extensive damage to infrastructure, housing and livelihoods.
Many people who lost their homes currently require urgent shelter and essential household items. Those who have returned to their villages after the cyclone do not have access to safe drinking water.
In order to curb the spread of the water-borne diseases, the Indian Red Cross will also conduct health education activities in the cyclone-hit areas.
ECHO has signed a Euro 3 million humanitarian contribution agreement with the IFRC to support the Federation's Disaster Relief Emergency Fund (DREF). Funds from the DREF are mainly allocated to "small-scale" disasters that do not give rise to a formal international appeal.