Prime Minister Narendra Modi on Sunday announced an ex-gratia of Rs 2 lakh each to the next of kin of those who lost their lives in the Anaj Mandi fire.
The prime minister has also approved Rs 50,000 each for those seriously injured in the fire, his office said.
The amount will be paid from the Prime Minister National Relief Fund, the PMO said in a tweet.
Ex-gratia is an amount paid not as part of a legal, but moral obligation.
A massive fire ripped through a factory in Anaj Mandi area of north Delhi on Sunday morning, leaving 43 labourers dead and many others injured, police said.