Additional Chief Secretary and in-charge of the Cabinet department N N Pandey told reporters here that the decision was taken in a cabinet meeting chaired by Chief Minister Raghubar Das.
A physical verification found crop loss and decline in the levels of ground water and surface water bodies, Pandey said.
The state government had announced a package of Rs 1,398 crore to drought-hit farmers on November 6 for subsidised diesel, distribution of seeds, construction of small check dams and other facilities.