The five districts are-- Muzaffarnagar, Shamli, Saharanpur, Bagpath and Meerut.
More than 60 persons were killed and over 40,000 displaced in communal violence that had broken out in Muzaffarnagar and adjoining areas in September this year.
The pension will be given from September under Rani Laxmi Bai scheme, Chief Secretary Javed Usami said.
The decision was taken during the UP Cabinet meeting chaired by Chief Minister Akhilesh Yadav.
"It was decided to give pension of Rs 400 per month to those seriously injured in communal riots in Muzaffarnagar, Shamli, Saharanpur, Bagpath and Meerut after August 27," the Chief Secretary said.
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Shatabdi hospital, being constructed under King George Medical University, would be run as a part of it and 100 seats in postgraduate courses could be increased.
"Initially, it was decided that the hospital will be run on Robinhood basis where financially well off patients will be charged and free treatment will be provided to the poor ones," he said.
It was also decided to give a government guarantee against the credit limit of Rs 1,590.15 crore of UP Cooperative Sugar Mill Limited for the crushing season 2013-14.
Usmani said that to expand training facilities of Industrial Training Institutes it has been decided to create new trades and posts.
The chief secretary said that under this 46,200 seats would be created in various trades in the next two years.
He said that in the wake of approval given by the Energy Task Force the cabinet approved a proposal to purchase 2,161 mega watt power.
Usmani said that it was also decided to lay underground electric wires in Azamgarh, Tirwa in Kannauj and Sefai in Etawah with an approximate cost of Rs 160 crore.